Prime Minister Justin Trudeau’s departure opens possibilities for a pro-crypto leader in Canada’s government.
Trudeau Announces Resignation
Canadian Prime Minister Justin Trudeau has announced his intention to resign as both the leader of the Liberal Party and as prime minister. After nearly a decade in office, Trudeau cited “internal battles” as the reason for his decision, stating, “I cannot be the one to carry the liberal standard into the next election.” His resignation may bring changes to the government’s stance on digital assets.
Crypto Policy Under Scrutiny
Trudeau’s tenure was marked by resistance to digital assets, particularly during the 2022 Freedom Convoy protests when the government sanctioned crypto wallets. This move drew criticism domestically and internationally, sparking debates about the potential overreach of central bank digital currencies (CBDCs). The controversy even became a talking point for U.S. Republican lawmakers during the 2024 elections.
Upcoming General Election
Canada’s general election, scheduled for October, will determine Trudeau’s successor. Conservative leader Pierre Poilievre, a known supporter of digital assets, is currently leading in the polls. Poilievre has garnered attention not only in Canada but also among U.S. President-elect Donald Trump’s supporters. However, his recent stance on cryptocurrencies has been more subdued.
Regulation at the Provincial Level
Despite federal leadership changes, Canada’s crypto regulations primarily fall under provincial jurisdiction. The Canadian Securities Administration (CSA), a coalition of provincial regulators, will continue to shape the country’s digital asset landscape. This structure limits the direct influence of the next prime minister on crypto policies.
Potential Successor: Mark Carney
One possible contender for Trudeau’s position is Mark Carney, a former governor of both the Bank of Canada and the Bank of England. Carney has voiced strong opinions on crypto, advocating for strict regulation of stablecoins. In a 2021 lecture, he questioned their differentiation from CBDCs, stating, “Tokens at the heart of programmable networks will have to remain just that, of token value.”
Canada’s Crypto Future in Focus
With Trudeau’s resignation, Canada faces a pivotal moment for its digital asset policies. As leadership transitions, the potential for a more crypto-friendly government could signal changes, though regulatory power remains with provincial authorities.
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