Canada’s PM Slams Calls for “Risky” Crypto Investments
- Canada has an active and growing crypto market.
- The new opposition leader has vowed to make Canada a hub of crypto activities.
Canadian Prime Minister Justin Trudeau took to Twitter to comment on the pro-crypto stance of new opposition leader Pierre Pollievere. PM Justin slammed Pierre’s support for crypto investment, noting that leaders should not encourage citizens to invest their savings in volatile cryptocurrencies.
Justin, in his tweet, said his government would call out “questionable” economic, reckless economic ideas.” He wrote,
Telling people they can opt out of inflation by investing in cryptocurrencies is not responsible leadership. Fighting against life-saving vaccines is not responsible leadership. Opposing the pandemic supports that saved jobs and helped families is not responsible leadership.
Justin has remained vocal about the need for extreme carefulness when investing in crypto assets. He appeared to have reaffirmed his comments in his tweet during an interview, adding that “responsible leaders” shouldn’t encourage people to “invest their life savings in volatile cryptocurrencies.”
Pro-crypto enthusiast Pierre has vowed to make Canada “the blockchain capital of the world,” citing the potential for job growth in the Web3 industry and cheaper access to financial products as justifications for the goal. In previous interviews, Pierre has previously accused the Canadian government of ruining their currency and urged citizens to adopt cryptocurrencies.
Pierre, a politician from Calgary, was elected as the Conservative Party of Canada’s new leader last weekend. The Conservative Party of Canada serves as the official opposition to the Liberal Party, which is now led by Justin.
Cryptocurrencies are not yet legal in Canada. However, the country has an active and growing crypto market. Senior Canadian officials have called for regulatory efforts to match the industry’s pace. A senior official of the Bank of Canada noted that locals are not yet aware of the risks involved in investing in crypto assets.
The problem is becoming more urgent as Canada’s financial system absorbs cryptoassets, raising the possibility that crypto shocks, like the recent price drop, could affect the larger financial system. In an interview with Reuters, Bank of Canada Senior Deputy Governor Carolyn Rogers called for urgent steps to be taken by the government while the industry is still “small.” He said,
This is an area that is still small, but it’s growing really rapidly. And it is largely unregulated. We don’t want to wait until it gets a lot larger before we bring regulatory controls in place.
According to a report by the Bank of Canada, the value of the global crypto asset market surged from $200 billion at the beginning of 2020 to $3 trillion at its high. Additionally, Bitcoin ownership among Canadians increased significantly from 5% in 2020 to 13% in 2021.