Canada’s Cryptocurrency Future After Election: Hope or Disappointment?
After a dramatic general election, crypto market observers are asking the big question: Does Canada still have hope of becoming the global blockchain hub it was promised to be?
While Prime Minister Mark Carney’s Liberal Party won a narrow victory over the Conservative Party, the future of the crypto industry in Canada remains uncertain. The Conservative Party – which has been a strong supporter of cryptocurrencies as a hedge against inflation and a driver of technological innovation – is now in the opposition as older voters shift toward the Liberals amid concerns about the impact of former US President Donald Trump’s controversial statements.
Two Minds, One Uncertain Future
Cryptocurrency has become a clear dividing line between Canada’s two major political parties. In 2022, Conservative Party Leader Pierre Poilievre voiced support for Canadians to use Bitcoin as a way to “escape” inflation. He pledged to convert the cryptocurrency from a “securities” classification to a “commodity”, paving the way for the development of domestic blockchain companies.
In contrast, then-Finance Minister Chrystia Freeland did not hesitate to criticize Poilievre’s stance, saying that this was “reckless” advice and led to financial losses for many citizens. With the view that cryptocurrencies are high-risk investment instruments, the Liberal Party has maintained a cautious stance, focusing on consumer protection and financial stability.
Bill C-249: Unfulfilled Hopes
One of the most notable attempts to bring cryptocurrencies into the national mainstream was Bill C-249, introduced by Conservative MP Michelle Rempel Garner in 2022. The bill proposed a dialogue between the government and the crypto community to develop a clear regulatory framework and encourage innovation.
However, despite strong support from the tech and investor community, the bill failed to pass the second reading in the House of Commons. This failure marked a major setback for those hoping for a crypto future in Canada.
Trump and the “51st State” – A Political Backlash
An unexpected development that affected the election landscape was Donald Trump’s controversial statement suggesting that Canada could become the “51st state” of the United States. This statement unintentionally boosted the Liberals’ support among older voters, who considered “dealing with Trump” a top priority.
Meanwhile, younger voters – who care about innovation and technology – unexpectedly swung to the Conservatives. However, localized vote-sharing changes, weak support in Quebec, and the Liberals’ clever campaign tactics ultimately led to Mark Carney’s victory.
What’s the Future for Canadian Blockchain?
The Liberals’ victory means that the current crypto policy – one of control and protection – is likely to continue. While the industry still has room to grow, hopes for bold reforms, such as regulatory reform or support for domestic blockchain startups, will be put on hold for now.
However, with growing pressure from major powers like the US – where cryptocurrencies are increasingly being recognized and integrated into the economy – Canada may not be able to stay out of the game for long. As issues like technological innovation, economic competitiveness, and attracting global talent become more pressing, the Canadian government may have to reconsider its stance.
Conclusion:
Canada still has the potential to become a blockchain hub with more consistent and open policies. But that will depend on whether the new administration is willing to engage with the crypto community – or continues to see it as a threat rather than an opportunity.
