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ccording to its new mini-budget, the Canadian federal government anticipates launching a consultation on cryptos, stablecoins, and Central Bank Digital Currencies (CBDCs).

The government's "2022 Fall Economic Statement," published on Nov. 3 by Deputy Prime Minister Chrystia Freeland, serves as a fiscal update alongside the government's main annual budget.

The statement contained a brief section titled "Addressing the Digitalization of Money," which outlined the government's cryptocurrency plans.

According to the report, the rise of cryptocurrencies and money digitalization is morphing financial systems in Canada and worldwide, and economic system regulation in the country must keep up.

Money digitalization poses a threat to democratic institutions around the world, citing cryptos' use in sanctions prevention and unlawful conduct financing both domestically and internationally.

The government stated in the statement that discussions with stakeholders on digital currencies, stablecoins, and CBDCs were released on Nov. 3, though it is unclear which stakeholders will be involved.

The revealed consultations are thought to be part of the government's intention to initiate a financial industry legislative review focused on digitalizing money and preserving financial sector safety and security, which was revealed as part of the 2022 budget on April 7. In light of these risks, this review will also consider the "potential need" for a Canadian CBDC.

Protests erupted in Canada's capital of Ottawa in January over the COVID-19 vaccine requirement and restrictions, with protestors relocating to crypto crowdfunding platforms after being booted off competing fiat fundraising platforms.

On February 11, the province of Ontario proclaimed a state of emergency in response to the protestors' road blockades, culminating in the government freezing millions of dollars in donations to the protestors; at the time, protestors had raised approximately 21 Bitcoin, worth $902,000.

For the first time in Canadian history, Prime Minister Justin Trudeau invoked the Emergencies Act on February 14, giving him the authority to freeze protesters' bank accounts and monitor large and suspicious transactions, such as cryptocurrency.

Two days later, Canada's federal police force demanded that several cryptocurrency exchanges stop processing transactions for more than 30 specific crypto wallet addresses connected to the ongoing protests.

What do you think of Canada's decision to examine crypto, stablecoins, and CBDCs in its new budget? Drop your comments by sharing this article on social media.

Posted 
Nov 4, 2022
 in 
Crypto News
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