What are the key issues that Canadian voters will consider in the upcoming election?
How have the leading candidates for Prime Minister previously addressed the topic of cryptocurrency?
What significant events in Canada’s crypto landscape have influenced regulatory efforts in the past few years?
How do the electoral strategies of Pierre Poilievre and Mark Carney differ regarding cryptocurrency?
What impacts might the outcome of this election have on the future of digital assets in Canada?
Canada will host an election next week, where voters will consider a range of issues — the economy, housing, trade relations with the U.S. — as they choose their elected officials, who in turn will choose the next Prime Minister of the country.
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The narrative
Crypto is not a major electoral issue during this year’s Canadian election. Neither leading Prime Minister candidate has campaigned on digital assets, but here’s how they’ve discussed the issue in the past.
Why it matters
Canada infamously had massive crypto exchange collapses over the past few years, leading to concerted efforts from its provincial regulators to enact guardrails on the digital asset industry. While exchanges like Coinbase are calling for policies like a Canadian government task force or a bitcoin reserve, so far the leading candidates for Prime Minister seem to have other issues on their minds (namely: U.S. relations and trade, housing and the economy).
Breaking it down
When Canadians go to the polls next Monday, they’ll be choosing their Member of Parliament. The party with a majority of seats will form the country’s new government, and the leader of that party will become the new Prime Minister.
While the Conservative Party and its leader Pierre Poilievre held comfortable leads in polling averages through late-January 2025, the Liberal Party saw a massive surge in popularity after U.S. President Donald Trump announced tariffs with Canada (and most other countries). The Liberal Party, now with leader Mark Carney, has held a significant edge ever since, according to both polling data and Polymarket. Carney took over from former Prime Minister Justin Trudeau as leader of the Liberal Party last month.
Pierre Poilievre
Poilievre is a longtime Bitcoin and blockchain advocate who has led the Conservative Party since September 2022. He owns shares in a Bitcoin exchange-traded fund (ETF). In 2022, he promised to turn Canada into the "blockchain and crypto capital of the world" during a campaign speech (a phrase Trump later used on the 2024 campaign trail).
"I want to take control of money away from politicians and bankers, and give it back to the people," he said. "We need to give people the freedom to choose other money. If the government is going to abuse our cash, we should have the right to opt to use other, higher-quality cash."
He even bought shawarma using bitcoin during his campaign for Conservative Party leader, discussing digital assets in a 30-minute interview with the owner of the restaurant.
He supported Canada’s trucker protest, which dubbed itself the "Freedom Convoy" in early 2022 to object to a vaccine mandate for any truckers crossing the U.S.-Canadian border. At the time, the Canadian government sought to freeze financial support for the protestors, including by sanctioning crypto wallets tied to the truckers.
While Poilievre does not appear to have specifically linked Bitcoin or other cryptocurrencies to the truckers who may have lost banking access, he did call bitcoin "the single most important asset you could own."
Poilievre has also opposed the Bank of Canada’s research into a central bank digital currency, arguing that it could infringe on privacy rights or let lawmakers target benefits to supporters. Last year he supported a bill which would have banned a Canadian CBDC outright (echoing U.S. Republicans who have done the same here).
Canadian magazine Maclean’s reported that while Poilievre has said less about crypto in recent days, the Conservative Party as a whole still tends to support the industry, citing various Members of Parliament who have introduced bills or otherwise discussed crypto.
Poilievre did seem to discuss crypto publicly less after FTX’s dramatic collapse in 2022, which his political opponents used to issue warnings about his prior advocacy for digital assets. Poilievre may also be reckoning with Trump’s unpopularity in Canada, and seeking to distance himself from policies that may imitate the U.S. President’s.
Mark Carney
Carney was the head of both the Bank of Canada and later the Bank of England. While he hasn’t said a lot about Bitcoin, he did give a speech on the "future of money" in London in March 2018, where he criticized digital assets’ use, citing speculative mania and a lack of vendors willing to accept it as a payment tool.
"The long, charitable answer is that cryptocurrencies act as money, at best, only for some people and to a limited extent, and even then only in parallel with the traditional currencies of the users," he said. "The short answer is they are failing."
Carney pointed to transaction throughput, ease of access and other issues as barriers to digital asset adoption, but said his concerns with digital assets at the time were "not meant to dismiss them."
"Their core technology is already having an impact. Bringing cryptoassets into the regulatory tent could potentially catalyse innovations to serve the public better," he said. "Crypto-assets are an attempt to create the financial architecture for peer-to-peer transactions. Even if the current generation is not the answer, it is throwing down the gauntlet to the existing payment systems. These must now evolve to meet the demands of fully reliable, real-time, distributed transactions."
Carney praised distributed ledgers in particular, and suggested that existing digital asset infrastructure could eventually lead to the creation of a central bank digital currency, though he said "there are also broader societal questions" around issues like privacy should a central bank pursue a CBDC.
Just over a year later at the Economic Policy Symposium in Jackson Hole, Wyoming, Carney suggested that a global hegemonic digital currency backed by central bank digital currencies could bolster the world economy against the role of the dollar.
"The dollar’s influence on global financial conditions could similarly decline if a financial architecture developed around the new [Synthetic Hegemonic Currency] and it displaced the dollar’s dominance in credit markets," he said in August 2019. "By reducing the influence of the US on the global financial cycle, this would help reduce the volatility of capital flows to EMEs."
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Previewing the Canadian Election’s Crypto Angle
As Canada gears up for its upcoming federal election, one topic that has been making waves is cryptocurrency. The rapid rise of digital currencies, the blockchain technology that underpins them, and their role in both the economy and society have prompted political parties, candidates, and the electorate to examine their implications more closely than ever before. This article will explore the crypto angle in the Canadian election landscape, evaluating candidates’ positions, potential impacts on policy, and the broader implications for a nation grappling with technological change.
The Landscape of Cryptocurrency in Canada
Before diving into the specifics of the election, it’s essential to understand the state of cryptocurrency in Canada. Canadians have embraced digital currencies at an impressive rate, with estimates suggesting that nearly one in five Canadians has invested in or used cryptocurrency in some form. This growing enthusiasm has been bolstered by the emergence of various cryptocurrencies, exchanges, and decentralized finance (DeFi) platforms, providing Canadians with new investment opportunities, payment options, and ways to participate in financial markets.
The Canadian government has already begun to acknowledge the changes brought about by cryptocurrencies. In recent years, regulations have been introduced to tackle issues like money laundering, investor protection, and taxation of digital assets. However, the current regulatory landscape remains fragmented and often unclear, leaving many potential innovations in limbo. This setting has laid the groundwork for the 2023 election, prompting candidates to address how they plan to handle the challenges and opportunities that digital currencies present.
Party Positions on Cryptocurrency
Political parties in Canada are beginning to formulate their stances on cryptocurrencies and blockchain technology. The Liberal Party, under the leadership of Prime Minister Justin Trudeau, has historically leaned towards stricter regulations surrounding cryptocurrencies, focusing on consumer protection and combating crime. However, ongoing discussions about the need for innovation in the financial sector may push the party to embrace a more nuanced approach to facilitate growth while safeguarding investors.
The Conservative Party has shown an inclination towards embracing technological innovation and might advocate for a lighter regulatory touch. Their focus on economic growth could lead them to support policies that encourage the growth of Canada’s fintech sector, promoting the use of cryptocurrencies within established frameworks while ensuring compliance with existing laws.
The New Democratic Party (NDP) typically emphasizes social equity and may approach cryptocurrency through the lens of financial inclusion. They may advocate for the potential of cryptocurrency to empower underserved communities and provide access to financial services. However, they will likely also stress the importance of consumer protection and the need to regulate the industry effectively to prevent exploitation.
On the other side of the political spectrum, the People’s Party of Canada (PPC) has expressed skepticism towards the establishment view of cryptocurrencies, often emphasizing individual freedom and the risks associated with government interference in financial markets. The PPC may champion a very laissez-faire stance on cryptocurrency regulation, appealing to libertarian-minded voters.
Candidates and Their Crypto Policies
In this election, candidates’ approaches to cryptocurrency could make or break their support among younger, tech-savvy voters who see themselves as the future of the economy. Some candidates are leveraging their knowledge of technology and blockchain to stand out. For instance, candidates with a background in technology or finance may emphasize their intent to foster innovation, education, and infrastructure in this space.
The landscape will also depend on public perception and media coverage of cryptocurrency issues. Scandals, market fluctuations, and significant technological advancements could sway public opinion in unexpected directions. Candidates who can communicate effectively about the risks and rewards of cryptocurrencies are likely to resonate more with an electorate eager to understand the implications of these digital assets.
The Broader Economic Implications
With cryptocurrency featuring heavily in the electoral discourse, one cannot overlook its broader economic implications. The adoption and effective regulation of cryptocurrencies could position Canada as a global leader in fintech innovation. Potential job creation in technology, finance, and regulatory sectors is also a vital consideration for the electorate.
On the flip side, the volatile nature of cryptocurrencies presents a risk—not just to investors but also to financial stability. Uncontrollable market fluctuations can affect the Canadian economy, especially if traditional banking systems must adapt to accommodate new financial technologies. Therefore, candidates will face the challenge of balancing innovation with appropriate oversight.
Conclusion
As Canada approaches its federal election, the crypto angle has become a compelling arena for political discourse. Voters are increasingly informed about and interested in where candidates stand on cryptocurrency and blockchain technology. Whether driven by concerns for regulation, economic growth, or social equity, the candidates’ approaches to this digital frontier may significantly influence their electoral fortunes and Canada’s position in the rapidly evolving global economy.
In a world where digital currencies could reshape financial systems, the stakes are high for Canadian voters, policymakers, and political leaders alike. The election may well serve as a referendum not just on traditional party issues but also on how Canada chooses to navigate an increasingly digitized financial future.
As Canada prepares for its upcoming election, the intersection of cryptocurrency and politics is drawing significant interest. The evolving regulatory landscape surrounding digital assets and the political stances of various parties could shape Canada’s approach to crypto in the coming years.
Political parties have begun to address cryptocurrency in their platforms, reflecting a growing recognition of the impact that digital currencies can have on the economy. Some parties advocate for a more permissive regulatory environment to encourage innovation and investment in the blockchain sector, while others urge caution, highlighting the risks associated with volatility, fraud, and the potential for money laundering.
Public sentiment around cryptocurrencies is also shifting. As more Canadians invest in and use crypto assets, candidates may feel pressured to take a clear stance on the topic. Issues like taxation, security regulations, and the integration of blockchain technology into public services are likely to be hotly debated.
Moreover, the role of crypto in campaign financing is a topic that could emerge during the election season. As cryptocurrencies gain traction, questions surrounding transparency and regulatory compliance will be paramount for candidates seeking to engage with this new fundraising avenue.
Overall, the Canadian election presents an opportunity to explore how policymakers will navigate the challenges and opportunities presented by cryptocurrencies within their broader economic and regulatory frameworks. The positions adopted by candidates in the forthcoming campaigns could lay the groundwork for the future of crypto in Canada.