The federal government in Ottawa has announced plans to investigate cryptocurrencies, stablecoins and central bank digital currencies, and their potential impact on Canada’s financial system.
In its fall economic update, or mini-budget, the federal government said it plans to launch cross-country consultations on the rise of cryptocurrencies and money digitalization, which it said is “transforming financial systems in Canada.”
The economic updated further stated that money digitalization “poses a challenge to democratic institutions around the world,” highlighting cryptocurrencies’ use by some countries to avoid economic sanctions, and to fund illicit activities.
The Finance Department plans to begin consultations with stakeholders on digital currencies, stablecoins, and central bank digital currencies immediately, although exactly which stakeholders will be contacted has not been made known.
The crypto investigation is part of Ottawa’s broader plan to launch a review of Canada’s financial sector and the digitalization of money, which was previously announced in the government’s 2022 budget released this past April.
