Canada Adds Crypto,Stablecoin Consultation In its Mini Budget

• According to reliable data there are approximately 13-15% of crypto users in Canada.  

The Canadian federal government highlighted in a mini-budget that it is ready to begin consultations on cryptocurrencies, stablecoins, and central bank digital currencies (CBDCs).

On 3 November, The government released the “2022 Fall Economic Statement” by Deputy Prime Minister Chrystia Freeland, which is a financial update juxtaposition with its main annual budget.

A section in the mini-budget also talks about the “Digitalization of Money,” which highlights the interest of the Canadian government in crypto.      

It notes that an increment in cryptocurrencies and money digitalization is “transforming financial systems in Canada and around the world,” The country’s financial system regulation “needs to keep pace.”

Money digitization is “a challenge for democratic institutions around the world,” the statement said, highlighting the use of cryptocurrencies to evade sanctions and finance illegal activity domestically and abroad.

In the budget, the government said that “consultations with stakeholders on digital currencies including cryptocurrencies, stablecoins and central bank digital currencies are being started on 3 November, 2022.” However, it is not clear which stakeholder will be engaged.

The announced advisories are part of the government’s intention to launch a ” financial sector legislative review focused on the digitization of money and maintaining financial sector stability and security,” which was part of the 2022 budget released on 7 April.

In the last few years, the trend of developing CBDC has been quite popular; around nine countries have successfully launched their CBDC. 

According to some reliable data, more than a hundred countries, including 19 G-20 nations. 

In the list of nine countries that developed their CBDC, China was the first to launch its CBDC, the digital Yuan(e-CNY).    

Recently TheCoinRepublic reported that Turkey Central Bank is planning to launch its CBDC in 2023 after the completion of the research and testing process. 

The announcement was made on Turkey’s Presidential Annual Program for 2023, which was presented Monday by the presidential Strategy and Budget Directorate. The program also contains a discussion of a central bank digital currency. 

If the reports are to be believed the final decisions have been made by the Central Bank of the Republic of Turkey (CBRT). The decision was made after a year of research and Testing as well as development in the first phase.

The Monetary Authority of Singapore(MAS) noted in its press release that it is about to launch Ubin+ ambition to explore the use of Central bank digital currency for cross-border currency transactions. 

Ubin+ will test the use of CBDCs for foreign exchange and liquidity management and the connectivity between CBDCs and other digital asset networks. Under the project, the bank will also explore how systems established on distributed ledger technology(DLT) could interact with non-ledger payment systems.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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