Canada Announces Crypto, Stablecoin Discussion in New Budget Proposal
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Budget Describes Digitization of Money
According to the report, the regulation of the nation's financial system "needs to keep pace" with how cryptocurrencies are growing and how money is becoming more digital. The statement declared that the digitization of money presents a risk to democratic structures worldwide. It is pointing out the use of cryptocurrencies for domestic and foreign money laundering and the evasion of international sanctions.
In the announcement, the government said that stakeholder discussions on virtual currencies, stablecoins, and CBDCs would begin on November 3. However, the identity of the participating stakeholders is unknown.
Launch of Financial Sector Legislative Review
According to the information provided, the government intends to begin a financial industry legislative reform centered on money digitization and ensuring finance industry stability and security, as stated in the 2022 budget presented on April 7. In light of these dangers, this evaluation will also look at the possible necessity for a Canadian CBDC.
Suspension and Freezing of Bank Accounts
Canadian Prime Minister Justin Trudeau made international news earlier this year when he ordered banking institutions to suspend and freeze accounts linked to the demonstrators, including bitcoin donations. This was done in reaction to a weeks-long truckers' demonstration that shut the U.S.-Canada border. According to canada.com, a news site run by Postmedia Network, the majority of the $24 million collected, including part of the cryptocurrency money, is still blocked as of this week.