The Canadian federal government is set to launch a consultation on cryptocurrencies, stablecoins and central bank digital currencies (CBDCs) as revealed in its new mini-budget.
The statement opined that money digitalization “poses a challenge to democratic institutions around the world,” highlighting cryptocurrencies’ use in sanctions avoidance and illicit activity financing both domestically and abroad.
The announced consultations are understood to be part of the government’s intention to launch a “financial sector legislative review focused on the digitalization of money and maintaining financial sector stability and security,” which was part of the 2022 budget released on April 7.
This review will also examine the “potential need” of a Canadian CBDC in light of these risks.
Prime Minister Justin Trudeau invoked the Emergencies Act on Feb.14 for the first time in Canada’s history giving him the power to freeze protesters’ bank accounts and monitor “large and suspicious transactions,” including crypto.
Source: Cointelegraph
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