Carney replaced former Prime Minister Justin Trudeau. In a 2018 speech at the Bank of England, he was critical of Bitcoin. He also expressed concerns about private stablecoins and supported central bank digital currencies (CBDCs). Many in the crypto community see CBDCs as opposing the core principles of cryptocurrency.
However, Carney has also said he wants Canada to lead in emerging technologies. His platform for the 2025 federal election mentions advancements in AI, tech, and digital industries.
His previous statements, along with tensions in US-Canada trade, raise questions about his economic policies and how crypto fits into his vision.
Carney’s View on Bitcoin
While leading the Bank of England, Carney dismissed Bitcoin as a poor currency. He argued that Bitcoin fails as:
- A store of value
- A medium of exchange
- A unit of account
He once said, “Cryptocurrencies act as money, at best, only for some people and to a limited extent.”
His conclusion? “The short answer is they are failing.”
Concerns About Private Stablecoins
Carney also criticized private stablecoins. In 2021, he stated that they should follow similar regulations as traditional banks. He suggested that stablecoins must have:
- Liquidity requirements
- Central bank eligibility
- Protections for depositors
He also warned that too many competing stablecoins could fragment the monetary system.
Carney proposed that a well-regulated CBDC could solve these issues. He argued that a retail CBDC with API access for private firms could improve payment efficiency and financial stability.
Carney Supports Regulation, Not a Ban
In 2018, Carney told Bloomberg that crypto exchanges needed better regulation. He warned that without oversight, crypto markets could be manipulated.
Carney believed the best cryptocurrencies would move to the best-regulated exchanges; also suggested that if some cryptos failed due to regulation, that would be a good thing.
Despite his concerns, Carney acknowledged the potential of blockchain. He said policymakers should not block innovation and that new technology could improve financial stability and efficiency.
The 2025 Election and Crypto
Canada’s next federal election is set for October 20, 2025, but it could happen earlier.
Carney will face Conservative candidate Pierre Poilievre. Poilievre has been vocal about his support for crypto. In 2022, he said he wanted to make Canada a blockchain hub and create thousands of jobs in the sector. He also claimed crypto could help Canadians “take control” of their money.
Despite this, experts say crypto is unlikely to be a major election issue. Morva Rohani, from the Canadian Web3 Council, said that most Canadians are indifferent or skeptical about crypto. Bigger concerns include:
- Housing affordability
- Inflation
- Immigration
Another key issue is the trade war with the US. The dispute started when former President Donald Trump imposed tariffs on Canada, Mexico, and China.
Trudeau’s response to US tariffs helped the Liberals in the polls. Carney’s handling of economic tensions with the US may be more important to his election chances than his stance on crypto.
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2025-03-11 12:00:00
