Will we allow Canada to become a crypto capital?
CPC MP Pierre Poilievre wants to ban a government backed stablecoin, are we sure that's good?
GM. Welcome to the first edition of d3crypto, the home of Web3 news in Canada. Today we look into what's happening in the leadership race for the federal Conservative party. Plus, I wrote you a Web3 101.
Today's newsletter is 503 words, a 3-minute read.
The Conservative Party of Canada is currently in the midst of a leadership race. The frontrunner, Ottawa-area MP Pierre Poilievre, has been the only candidate to take an ardent stance on crypto, and—surprise—he's a fan. Why wouldn't he be? A cornerstone of Conservative identity is being against government overreach and regulation, and as cryptocurrencies are decentralized and generally operate outside traditional financial systems it's a no-brainer that he would take this stance.
However, in addition to being pro-Web3, Poilievre is also a crypto investor himself which has raised some eyebrows about potential conflicts of interest (i.e., promoting something that you're invested in).
At a recent CPC leadership debate, Poilievre was challenged by his competition about his outward promotion of cryptocurrencies, with Patrick Brown referring to crypto as "magic internet money" (not untrue), and Poilievre ultimately saying that Canadians should be free to make their own investment decisions (true). Though, it could be argued that someone openly promoting highly volatile investments could be considered some sort of financial advice and imply that by supporting him, he will be able to make crypto go to the moon (he won't).
In other Poilievre-crypto news, the CPC leadership candidate has said that he would ban the Bank of Canada (learn about what the Bank of Canada does) from creating its own cryptocurrency, saying, "A Poilievre government will ban a central bank digital currency (CBDC) and allow Canadians to have the economic and financial liberty that they deserve."
The Bank of Canada has been researching and developing a CBDC but currently has no plans to release it. A CBDC is effectively a stablecoin that is developed by the government, so a Bank of Canada stablecoin would be tied to the Canadian dollar much like other Canadian stablecoins, but created by a federal Crown corporation. A government-regulated stablecoin could pave the way for not only widespread adoption of cryptocurrencies, but also open the door to potentially making a Canadian CBDC an official currency, as is the case in El Salvador.
Nigeria has an active CBDC, Mexico is planning to release one in 2024, and at least 91 other countries are exploring this as an option. Would a ban on a Bank of Canada CBDC stifle Canada's role as a Web3 leader?
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