Canada’s federal government announced in a budget update released Thursday that it has started discussions on “cryptocurrencies, stablecoins and central bank digital currencies (CBDC).”

Deputy Prime Minister Chrystia Freeland released the government’s “Autumn 2022 Economic Statement” on November 3 as a fiscal update alongside her main annual budget. It focuses on the theme of “currency digitization”, with an emphasis on cryptocurrencies and digital assets and their use on a global scale.

The widespread use of cryptocurrencies is “transforming the financial system in Canada and around the world,” and Canada’s financial regulatory framework must “keep up with the times,” the document says while outlining some plans to “address the digitization of the coins”.

In a white paper statement, relevant stakeholder consultations on digital currencies, stablecoins, and CBDCs will be launched on November 3. The document did not disclose a list of specific stakeholders.

The Government of Canada will initiate a legislative review of the financial sector with the main objectives of digitizing the currency and maintaining the stability and security of the financial sector.

In recent months, digital assets and cryptocurrencies have been used to evade global sanctions and finance illicit activities.

In January, protests broke out in Canada’s capital, Ottawa, over the authorization of a COVID-19 vaccine and restrictions in Canada.

A month later, the Ontario Superior Court froze millions of dollars and crypto related to the organizers of the Ottawa “Freedom Motorcycle” protest by obtaining the so-called Mareva injunction. Experts say this is the first time Canada has used an unusual legal tool to crack down on cryptocurrencies.

To address the issue, the Canadian government on Thursday launched a consultation on digital currencies and will also review “potential demand” for a Bank of Canada CBDC.

In September, Bitcoin-friendly Pierre Poilievre was elected leader of the Conservative Party of Canada.

Pierre Poilievre previously promised that if he becomes Canada’s Prime Minister, he will “unlock” the potential of cryptocurrencies by consulting with provincial authorities, helping to unravel the regulatory web that currently governs cryptocurrencies and making Canada “the world leader in blockchain.” “.

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