Source: Coindesk; Translated by: Wu Zhu, Golden Finance
Canadian head of government, Prime Minister Justin Trudeau, is set to step down after nearly a decade in office.
Trudeau is seen as part of the Canadian federal government's resistance to digital assets, so a friendlier alternative may be beneficial for cryptocurrency, although the provinces have always been dominant.
Canadian Prime Minister Justin Trudeau announced his resignation on Monday, which may pave the way for Canada to establish a government that is less resistant to cryptocurrency, although provincial governments play a dominant role in determining the future of digital assets in Canada.
Trudeau stated at a press conference, 'I intend to resign as party leader and prime minister after the party elects a new leader.' He mentioned that 'internal strife' has disrupted his governance. 'I cannot be the one to bring liberal standards into the next election.'
Trudeau announced he would resign from his position as Liberal leader, which he has held for 11 years, as well as the prime ministership he has held since 2015. Critics of Trudeau in the crypto community condemned the government for the sanctions imposed on digital wallets during the Freedom Convoy protests in 2022.
The government's move to freeze cryptocurrency accounts has resonated outside Canada and has become a rallying cry for Republican lawmakers during the 2024 election. These politicians cite this situation as a primary example of the dangers of allowing central bank digital currency (CBDC), as it may lead to government intervention in cryptocurrency transactions.
Canada's election is set to take place in October, and according to polls, Conservative Pierre Poilievre holds a strong lead. He has also garnered cross-border support from many supporters of U.S. President Donald Trump.
Poilievre has been a vocal supporter of digital assets in the past but has been relatively silent on the topic recently.
However, in Canada, securities are a provincial matter, and without a national securities regulator like the U.S. Securities and Exchange Commission, the influence of the next leader of the Canadian Liberal Party (and thus the prime minister) or Poilievre is limited.
In contrast, the umbrella regulatory body composed of provincial regulators, the Canadian Securities Administrators (CSA), will have more say in the next steps for cryptocurrency.
One potential successor to Trudeau is Mark Carney (who has not officially announced his candidacy as the campaign has not yet begun), Carney comes from the Bank of Canada and has much to say about cryptocurrency and stablecoins.
He stated during a speech at the Bank for International Settlements in 2021, 'The core token of a programmable network must maintain its token value.'
Carney also stated that strictly regulated stablecoins are the only way for them to succeed, and if they are heavily regulated, 'then what’s the difference between them and CBDC?'