The next prime minister of Canada will be Mark Carney, a former governor of the Bank of England and the Bank of Canada. He has been a longtime skeptic and harsh opponent of Bitcoin (BTC), though.
With 85.9% of the vote, Carney won by a landslide on March 9. He is anticipated to start work in the next several days.
Mark Carney's thoughts on Bitcoin
In January 2025, Justin Trudeau will stand down as prime minister of Canada, and Carney will take over as prime minister.
Despite never having been in Parliament, Carney has gained a lot of support inside the Liberal Party thanks to his international reputation and expertise managing economic crises.
Carney's rise to become Canada's next prime minister, however, does not appear to bode well for the cryptocurrency market. He has been quite critical of Bitcoin (BTC) and other decentralized cryptocurrencies over the years. He established this stance while serving as the Bank of England's governor and then restated it.
“Canada’s new Prime Minister Mark Carney, a known critic of Bitcoin, has previously described it [BTC] as having serious drawbacks,” said X user EdGeraldX.
Notably, Carney determined that Bitcoin has "serious drawbacks" because of its fixed supply cap, which causes price volatility, in a 2018 lecture on the money of the future.
“Bitcoin’s fixed supply has led to a global speculative frenzy, leading to a proliferation of new cryptocurrencies,”
he said.
He claimed that creating a digital gold standard was a historic error and likened Bitcoin to a "criminal act of monetary error." According to Carney, Bitcoin and other cryptocurrencies are "poor short-term stores of value" that don't satisfy the fundamental requirements for money, like transactional utility and stability.
Carney likes CBDCs more
On the other hand, Carney is against Bitcoin but fervently in favor of central bank digital currencies (CBDCs). Indian regulators hold a fairly similar opinion. He contends that while CBDCs allow central banks to combat economic crime and terrorism, they can also increase banking access for both individuals and businesses.
“Carney called Bitcoin’s fixed supply a crime, supported CBDCs, and now controls policy for a $1.9 trillion economy,” one X user shared.
Carney shares his predecessor's opinions on Bitcoin and cryptocurrencies, albeit with a little stronger stance. Pierre Poilievre, a pro-crypto politician elected to head the Conservative Party of Canada, was criticized by Trudeau in September 2022.
Carney joins the government at a time when US President Donald Trump's tariff policies have set off a trade war with Canada. After delaying it in early February, the US has now formally placed a 25% tax on Canada.
Carney's anti-Bitcoin position may result in more stringent laws governing cryptocurrencies. As he backed at the Bank of England, he might concentrate on investor safety and anti-money laundering initiatives. ETFs that operate in Canada, such the Bitcoin ETF from BlackRock and the Solana ETF from 3iQ, may be impacted by this.
Additionally, Canada might soon create a digital Canadian dollar, which would lessen the economic impact of altcoins like Bitcoin.
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