Blockchain industry in Canada: Pierre Polievre wants Ottawa to be the ‘capital of the world’

Canadian political news just got interesting with the election of Pierre Polievre as leader of the Conservative Party and the main opposition to Justin Trudeau’s ruling Liberal government.

Poilievre is a Canadian politician who has served as a Member of Parliament since 2004. He has many hints of libertarianism – the individual, not the government, is responsible for maintaining his own well-being. This thinking is largely consistent with how cryptocurrency and Bitcoin (BTC/USD) followers feel.

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As it turns out, Poilievre is also a blockchain enthusiast who wants Canada to become the “blockchain capital of the world.” But where does Ottawa stand today in the growing digital economy?

Poilievre: Canadians need ‘freedom to spend other people’s money’

Canada’s central bank, the Bank of Canada, has failed in its job of curbing inflation while raising interest rates seems to be a regular occurrence.

Polievre went so far as to state that the central bank is “destroying the Canadian dollar”. The alternative, he added, is for Canadians to have “the freedom to use other money, such as Bitcoin.”

Polievre really puts his money where his mouth is. In fact, he once said that Bitcoin is an asset that allows Canadians to “opt out” of inflation (a talk he probably regrets making…have you seen the latest Bitcoin news?).

Standard financial disclosures for politicians show he owns at least $10,000 worth of a Canadian Bitcoin exchange-traded fund called Purpose Bitcoin, which is among the best Bitcoin ETFs you can buy. So he passes the sniff test while putting his money where his mouth is.

He explains his views on Bitcoin (after using his wallet to buy a shawarma sandwich) in this interesting YouTube video that I suggest you check out.

Crypto means “less financial control” for politicians

Polievre explains in a policy paper dated March 28, 2022 that Canadians should live in a world where politicians and bankers have “less economic control” over the population.

Instead, Canadians should have greater financial control to “own and use crypto, tokens, smart contracts and decentralized finance.”

Why now? Simply put, the Trudeau government is doing a good job of “destroying the Canadian dollar,” and Bitcoin offers an alternative asset to hedge against rising costs and a weakened currency, according to Polievre.

Commenting on the broader crypto market, he wrote:

The blockchain economy is about more than new forms of cash. It is also about decentralizing control over our financial decisions. A Poilievre government would welcome this new, decentralized, bottom-up economy and let people take control of their money from bankers and politicians. It will expand the range and lower the cost of financial products, creating thousands of jobs for engineers, programmers, coders and other entrepreneurs.

Under a conservative government, crypto will be legal and treated like a commodity (ie gold) with similar taxes and regulations. The logic here is “what is legal to do with Canadian dollars should be legal to do with cryptocurrencies and vice versa.”

Poilievre’s comments give the impression that Canada has fallen far behind its global peers in adapting and embracing the blockchain and cryptocurrency industries. Either this is true or just partisan. So which one is it?

IoTeX CEO: Canada is already blockchain-friendly

I am aware of several Canadian blockchain projects that are attracting attention, but it was difficult to find hard data.

I reached out to Raullen Chai, CEO and founder of IoTeX (IOTX/USD) to ask for his opinion. He has some insight, having lived and studied in Canada before embarking on an impressive career in Silicon Valley that ended up founding a project that brings the idealistic power of blockchain to devices, Dapps and NFTs.

You can read my entire Invezz interview with Raullen in 2021 here.

Chai told me in an interview for this article that Canada has been a growing hub of blockchain innovation since at least 2018. Today, there are more than 550 blockchain projects and 330 crypto-related startups in Canada. In fact, Canada in its current form is very “blockchain friendly,” notes the CEO.

In fact, IoTeX partnered with a Canadian startup called Morpheus.Network that is leveraging its blockchain technology to “disrupt the trillion-dollar global supply chain market and make international trade more efficient.”

Meanwhile, the trucker protest in early 2022 and the Liberal government’s move to seize the bitcoin wallets of those who funded the disruption are unlikely to tarnish Canada’s reputation. Raul says:

I honestly don’t think this will affect their crypto and blockchain stance or how the global blockchain and crypto community views Canada. However, it may make people more concerned about owning their crypto directly instead of holding it on exchanges. The whole point of crypto is that we have the power to become our own bankers, making it impossible for anyone to seize our assets.

Final Thoughts: Polievre must play the long game

The Financial Post notes that Poilievre appeared on a crypto podcast in early 2022, and has since completely shied away from new interviews. Of course, he’s always welcome on the Invezz podcast (hint, hint).

The brutal bear market means Bitcoin and other cryptocurrencies are likely to take a backseat to more pressing issues, including carbon taxes, housing prices, foreign affairs, among others. No one wants to tout the benefits of crypto when many investors are feeling the pain.

So what does all this mean for the crypto industry? Essentially nothing. Not the most exciting time for the industry seeing big projects like Luna (LUNA/USD) collapse.

As noted by the IoTeX CEO, Canada already offers blockchain companies a friendly environment to operate. Right now, Polievre doesn’t seem to (or even wants to) bring anything new to the table. Perhaps things will change before the next election, which is scheduled for October 2025.