Crypto

Canada launches consultation on crypto and CBDC following rise in use cases in the country

  • Crypto adoption in Canada is around 8%, with over 2.6 million investors.
  • In the 2022 budget, the country announced the government’s plan to launch a legislative review of the financial sector.
  • Quebec’s energy supplier, Hydro-Quebec, has offered to shut off electricity for blockchain operations.

India is leading the adoption of crypto globally, but countries like Canada are also joining the race. Although the latter is still far behind in the race, he could pick up the pace given that he receives government support to do the same. However, some entities continue to stand in the way of crypto adoption.

Canada Welcomes Crypto

Canada released its 2022 budget, in which, in addition to several other policies, an address to the digitization of money was also found. According to her, the increase in use cases and the rapid adoption of cryptocurrencies are transforming financial systems in Canada and around the world.

Additionally, the use of cryptocurrencies has also been a problem as they are used to avoid global sanctions and finance illegal activities. Not only that, but according to the budget, digital assets pose a threat to traditional banking institutions in the country.

Thus, the government will tackle these challenges and launch a legislative review of the financial sector. Through this, the government will carry out consultations with stakeholders regarding cryptocurrencies, stablecoins and the CBDC. This will be done to maintain the stability and security of the financial sector.

This could prove beneficial for the 2.6 million people in Canada registered as owning crypto as of October 2022. While the global average ownership rate is 14%, Canada’s is only 8%. India, on the other hand, leads the space with an average homeownership rate of 28%.

Crypto Adoption Rate

If the government gets involved, the crypto space could have a chance to thrive and grow, provided it takes a positive approach to the issue.

Roadblocks

As the Government of Canada tries to be more inclusive towards crypto, others are trying to get rid of it. According to a new proposal submitted by Hydro-Quebec, the energy provider in the province of Quebec in Canada, wants the blockchain industry to stop receiving electricity in the region.

The growing demand for electricity is not fully satisfied, which led Hydro-Quebec to make this decision. The proposal to suspend 270 megawatts of electricity will affect crypto miners in the region, as the current rules already make it difficult for them to grow their operations.

Commenting on the same, the company said,

“Given the significant increase in anticipated demand for electricity and the tightening of energy and capacity balance sheets, Hydro-Québec has filed an application with the Régie de l’énergie regarding the suspension of the award process to the blockchain industry.

If the proposal passes, miners including Bitfarms and Hive Blockchain could be affected.

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