Canada’s new Prime Minister, Mark Carney, has a complicated history with cryptocurrency, advocating for regulation while expressing skepticism towards Bitcoin and stablecoins. His election campaign emphasizes innovation in technology but faces competition from pro-crypto candidate Pierre Poilievre. The national conversation seems largely focused on immediate economic issues rather than crypto itself.
Mark Carney, Canada’s newly appointed Prime Minister, has stepped into a lively political landscape, especially concerning cryptocurrency. Known for his prior critiques of crypto, particularly Bitcoin, during his time as Governor of the Bank of England, Carney’s views may influence Canada’s digital currency direction. His platform includes promoting Canada as a leader in tech and AI industries, but questions linger regarding his economic policies and the future role of crypto in Canada’s financial landscape.
Carney’s previous comments on Bitcoin stand out. He described it as a “poor store of value,” arguing that it doesn’t effectively fulfill the three essential functions of a currency: being a store of value, a medium of exchange, and a unit of account. He bluntly noted, “The short answer is they are failing.” Carney has also voiced concerns about private stablecoins, which he believes require robust regulatory frameworks to ensure safety and functionality like traditional banks.
In a notable 2021 lecture, Carney argued that disjointed stablecoin systems could weaken liquidity across the monetary system. He emphasized the need for a central bank digital currency (CBDC) to alleviate such fragmentation, describing it as a potential remedy to enhance financial stability and overall monetary efficiency.
While skeptical of cryptocurrencies, Carney has publicly called for regulation—not with the intent to stifle innovation but to bring the industry up to par with traditional financial standards. In a 2018 Bloomberg interview, he expressed concerns about manipulation and fraud potential within crypto exchanges and stated, “The best of the cryptocurrencies, I would suggest, will gravitate to the best of the exchanges if they’re regulated.”
It’s also notable that Carney entertained the idea of allowing some cryptocurrencies to disappear within a regulated environment, framing it as a necessary aspect of financial legitimacy. He argued that inclusion in the financial system comes with privileges, and responsibilities must accompany those privileges, aiming to strengthen the relationship between cryptocurrencies and traditional finance.
But, as Carney prepares for the federal election set for no later than October 2025, he faces opposition from Pierre Poilievre, a pro-crypto Conservative candidate. Poilievre has made waves with statements advocating for Canada as a blockchain hub, promising to enhance choice, reduce costs, and create jobs through the crypto sector.
Nonetheless, experts indicate that crypto might not take center stage in this election. Many Canadians seem indifferent or skeptical about cryptocurrencies, with pressing issues like affordability, housing, and inflation dominating political discourse. Morva Rohani from the Canadian Web3 Council reflected this view, noting, “The reality is that most Canadians are either indifferent or skeptical about crypto, and larger issues… dominate the political conversation.”
Moreover, the backdrop of the US-Canada trade war complicates Carney’s position. The shifting political dynamics between these neighboring nations could ultimately overshadow crypto discussions in Canada, making Carney’s stances on broader economic conflicts more critical for his electoral success than his views on digital currencies.
In summary, Mark Carney’s new role as Prime Minister presents a complex picture for cryptocurrency in Canada. He brings a cautious yet critical perspective, bolstered by his prior roles as an economist. With upcoming elections looming, his stance on financial technology and regulatory frameworks will likely shape the future of crypto in the country, but prevailing economic concerns may overshadow the digital currency debate.
Original Source: cointelegraph.com