Last updated on November 17th, 2022 at 12:50 pm
The Canadian federal government has set up a consultation process for CBDCs (central bank digital currencies), stablecoins, and crypto. This was revealed in the 2022 Fall Economic Statement, released on November 3rd.
The statement outlines the government’s strategy for improving the economy and making life easier for its citizens.
A section was dedicated to cryptocurrency and digital currency plans, where it acknowledged that the digitization of money changed the narrative of financial institutions and systems; however, the need to curb the negative use of this new system was what clogged the representatives’ minds. This is where a legislative perspective is required to maintain the country’s financial stability and security.
What next?
Canada has previously imposed restrictions on crypto assets and regulated crypto trading platforms, so this financial sector regulation encompassing the entire digital currency market is not surprising. It has been anticipated for some time.
Earlier this year, approximately 34 crypto wallets in Canada were sanctioned for contributing to citizen protests for the “Freedom Convey” ( a protest against the law that states every person entering Canada must be vaccinated against COVID-19).
This sparked outrage among crypto influencers and the wider community.
Nonetheless, regulations have certain benefits, such as reduced fraud and malicious activity and improved investor confidence.
Most countries with large cryptocurrency users are taking steps toward regulation to create a framework for proper operations and accountability.
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