Cryptocurrencies gaining traction among Conservatives; push for regulation grows

One Alberta MP says it’s time for Canada to have a serious reflection about the merits of cryptocurrency.

Conservative Michelle Rempel Garner says she hopes her bill to help grow the cryptocurrency sector will get Canadian legislators talking about it in a non-polarized way.

“We have this sort of rigid polarization, where… ‘crypto is the devil, it’s terrible, it’s going to ruin your life,’ to ‘crypto is the saviour, it’s going to liberate all things,”’ Rempel Garner said.

“That’s really oversimplified.”

The private member’s bill she introduced in February, which was scheduled for debate in the House of Commons Tuesday night, would compel the government to consult experts and create a plan for crypto assets within three years.

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From the other parties, there’s been little on this file. No Liberal budget has ever mentioned crypto or Bitcoin except a 2019 pledge to hire more CRA auditors to go after crypto transactions. NDP members have said the field requires more study, especially in relation to how it’s used to fund crime.

But Rempel Garner hopes her bill will get cross-party support.

Many Canadians are still confused by how digital currencies, like Bitcoin, even work and exist in Canada. Rempel Garner thinks regulators and lawmakers feel similarly lost.

Crypto miner wants more clarity 

Kevin Carthy is a miner who also runs a crypto group in Winnipeg aimed at educating new investors and sharing advice. He believes the worst thing is for crypto to remain obscure and esoteric, with legislators who don’t understand what’s happening.

He says miners and asset holders are already filing taxes and adhering to regulations as best they can, but without specific rules, it can get tricky.

“Those of us who are trying to run a business in this sector, it makes it really difficult not knowing where you stand,” said Carthy. “Banks have been a difficulty for us – not blaming the banks, they don’t know where they stand.

“The bottom line is, I feel most of the members just want clarification. It’s something that’s been overdue for a while.”

Trucker protest drew spotlight on crypto

Cryptocurrencies gained a lot of attention when protesters in big rigs blockaded access to Parliament Hill for several weeks beginning in January.

Those involved turned to digital assets as a way to collect donations after being dumped by GoFundMe and seeing funds generated by another online fundraising site frozen by an Ontario court.

READ: Canadian cryptocurrency exchanges ordered to cease dealings with convoy-linked accounts

Fellow MP and Conservative Party of Canada leadership candidate Pierre Poilievre is among those touting cryptocurrencies as an answer to the country’s current economic woes.

Rempel Garner is working on the campaign of Poilievre’s leadership rival, Patrick Brown.

Last week, Poilievre, who is himself a Bitcoin user, said digital currencies could help Canadians “opt out of inflation” and vowed to make the country more friendly to them.

He said he believes Canadians should have “more financial freedom” while politicians and bankers should have less financial control. Freedom has been the overarching theme of Poilievre’s campaign since he launched it in February.

Bitcoin is highly volatile: economist

University of Calgary economist Trevor Tombe said buying into digital assets doesn’t insulate anyone from price changes. In fact, he says, Bitcoin can be highly volatile for those involved.

“It’s putting crypto out there as some kind of cure all to the inflation challenges that we’re seeing. And that is not the case – not the case now, and it wouldn’t even be the case in some hypothetical world where we only use crypto,” he said.

Tombe said the main driver of inflation right now is the increase in oil prices, and digital currencies won’t change that.

“It doesn’t matter what currency you’re using to value barrels of oil,” he said. “If you take a number of barrels off the market, like we have following Russia’s invasion of Ukraine, then you’re going to see prices rise. Similarly, during recessions, when demand falls, you’ll see prices fall.”

—With files from Xiaoli Li