The government of Canada will start talking to people about cryptocurrencies, stablecoins, and CBDCs.
The governing body said that these kinds of assets should be closely watched because they could help with illegal activities and be “a challenge to democratic institutions.”
Crypto is an important part of the budget.
According to its mini-budget for 2022, Canada’s federal government will try to regulate the local cryptocurrency market. Officials started a series of meetings with shareholders to talk about the pros and cons of digital assets, stablecoins, and CBDCs.
The Canadian government said that this is an important step because digitizing money has changed the way the world’s financial system works. They also think that cryptocurrencies could help criminals and are used by criminals to get around punishments.
“Over the past few months, digital assets and cryptocurrencies have been used to get around international sanctions and pay for illegal activities in Canada and around the world.
To help Canada deal with these problems, the government said in Budget 2022 that it plans to start a review of the laws governing the financial sector, with a focus on making money digital and keeping the sector stable and safe.
After Putin’s “special military operation” in Ukraine, many politicians and financial experts warned that Russia might use digital currencies to get around some of the sanctions put in place by the West.
Changpeng Zhao, CEO of Binance, the largest cryptocurrency exchange in the world, thinks that bitcoin and other cryptocurrencies are not a good way to avoid fines. The executive said that the blockchain technology behind the asset class makes it too easy for governments around the world to track transactions.
Position of the Bank of Canada
Many times, the North American country’s central bank has asked the government to enforce rules on the industry.
Carolyn Rogers, the senior deputy governor, said in June that the step should be taken as soon as possible because the asset class is changing and attracting more investors. She thinks that some people don’t realize that they could lose everything they’ve put into the ecosystem.
“This is still a small area, but it’s growing very quickly.” “We don’t want to wait until it’s a lot bigger before putting rules in place,” she said.
As of the end of 2021, the Bank of Canada thought that about 13% of adults in the country were holders, while 90% of the population knew about bitcoin.
The institution’s study found that BTC is most appealing to people who don’t know much about money. The second most likely type of person to own the main cryptocurrency is an investor who knows enough about economics.
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