Canada announces review of cryptos and stablecoins in new budget law

Canada announces review of cryptos and stablecoins in new budget law

This Thursday, November 3, the federal government of Canada has decided to take the lead in relation to crypto-currencies. As part of the establishment of the next budget law, a study is conducted on “cryptocurrencies, stablecoins and central bank digital currencies”.

Chrystia Freelandthe Deputy Prime Minister of Canada, recently published a the government’s roadmap for the coming months with regard to finances. On reading this roadmap, we distinguish provisions on the recovery of the economy after COVID-19, budgetary projections as well as a segment on the digital currencies.

This last section talks broadly about digital assets such as cryptocurrencies and their use. The Canadian government is sure of one thing, cryptocurrencies have a significant influence on financial systems around the world.

With this in mind, it is a good idea for Canada’s financial regulatory frameworks to be updated. There is talk of taking digital assets into account in the financial system in Canada so as not to get overwhelmed in the future months.

Cryptocurrencies are ways to circumvent the law

In its roadmap, the Canadian government takes into account the fact that Global financial institutions face a lot of challenges related to cryptocurrencies and digital assets. Indeed, these new means of payment are used to circumvent the law and global sanctions. They are used to finance illegal activities around the world.

This is why for effective governance, consideration of cryptocurrencies suggests in-depth market research. The published document indicates that the government has mandated a review of digital currencies in general.

This will materialize by legislative review on financial stability and security. It will also focus on updating several other aspects of digital currencies.

Once the regulations are in place, some slippages may no longer appear. We remember when Prime Minister Justin Trudeau ordered to freeze the accounts of protesting truckers who had blocked the entrance to the border between Canada and the United States. This blockage, which amounted to $24 million, also extended to Bitcoin donations.