Cryptocurrencies have become less important in Canadian politics as regulations remain uncertain. The lack of interest from politicians and the media raises questions about the future of cryptocurrency regulation in Canada.
The decline in attention on cryptocurrencies is evident in the decreasing number of discussions in Canadian parliamentary chambers and committees. In 2022, cryptocurrencies were mentioned 279 times, but this dropped to just 94 in 2023. The decline can be attributed to various factors, including limited mainstream appeal and skepticism within the crypto community regarding politicians’ understanding of the industry.
One notable change is Conservative Leader Pierre Poilievre, who used to support cryptocurrencies in politics but no longer includes them on his disclosure form. This could be because he sold shares in a Bitcoin exchange-traded fund or his crypto holdings decreased in value.
Other members of Parliament, like Conservatives Ben Lobb and Tony Van Bynen, and Liberal Chandra Arya, have also removed Bitcoin and other cryptocurrencies from their public asset disclosure forms. This trend shows that digital assets are becoming less important in Canadian politics.
The decline in political and media interest is also seen in the decreasing number of private member’s bills related to cryptocurrencies. A bill sponsored by Conservative MP Michelle Rempel Garner to support the growth of the crypto sector was rejected, showing a lack of political will to promote its development.
While politicians and the media lose interest, the cryptocurrency industry continues to evolve and introduce new technologies and products. Most crypto companies in Canada have followed staff notices, effectively creating a de facto regulatory framework. However, the absence of clear regulations from the government creates uncertainty for market participants and investors.
The Bank of Canada recognizes the potential of cryptocurrencies but does not see them as a threat to the Canadian dollar. The central bank is exploring the possibility of introducing a digital Canadian currency, which could offer a more regulated alternative to decentralized cryptocurrencies.
The uncertain regulatory environment in Canada has led independent regulators to oversee cryptocurrency activities. This approach provides some oversight but lacks the comprehensive framework needed for innovation and consumer protection.
A parliamentary committee report highlighted the economic and job creation opportunities of cryptocurrencies in Canada. However, the government’s response did not commit to implementing the recommendations in the report, leaving the industry uncertain.
Despite the fading political and media interest, the cryptocurrency industry remains resilient. For example, Bitcoin dropped from over $80,000 in November 2021 to just above $21,000 at its lowest point in the past year. However, it has since rebounded to around $48,000, showing investor confidence.
The decline in political and media attention suggests that cryptocurrencies have lost their once-prominent position in Canadian politics. The uncertain regulatory landscape raises concerns about the industry’s future. However, the resilience and growth of the cryptocurrency sector indicate that it will adapt to the changing regulatory environment, creating new opportunities for economic growth and innovation in Canada.
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