Federal Government Announces Plans to Further Review Digital Assets in Fall Economic Statement
On November 3, 2022, Deputy Prime Minister and Finance Minister Chrystia Freeland delivered the fall economic statement Building an Economy That Works for Everyone (“the Economic Statement”), which, among other developments, outlined the federal government’s broader plans to understand digital currencies and their effect on the Canadian financial system. The federal government expressed the view that the country’s framework for regulating its financial system must “keep pace” with developments in digital assets and cryptocurrencies, and highlighted their recent use in financing illicit activity and circumventing international sanctions.
Targeted consultations with stakeholders on digital currencies, including cryptocurrencies, stablecoins and central bank digital currencies (CBDCs), launched on November 3, 2022. These consultations will form part of the government’s intention to set in motion a financial sector legislative review targeting the digitalization of money and maintaining stability and security in the country’s financial system, previously announced as part of the 2022 Budget in April.
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