The risks of bitcoin “to monetary sovereignty” in Canada is going to be studied by Ottawa.
And it’s going to take two years, according to Blacklock’s Reporter.
The Department of Finance launched the review on Monday following the Emergencies Act freezing of $7.8 million in 170 bitcoin wallets and 267 bank accounts held by ‘Freedom Convoy’ sympathizers on Feb. 14.
“The digitalization of money, assets and financial services which is transforming financial systems and challenging democratic institutions around the world creates a number of challenges that need to be addressed,” department staff wrote in a notice to potential contractors.
“In the last several months there have been a number of high profile examples, both around the world and here in Canada, where digital assets and cryptocurriencies have been used to avoid global sanctions, evade government oversight and fund illegal activities.”
The Finance Department did not reference the ‘Freedom Convoy’ by name.
“Digital assets are of particular concern,” said the notice called Financial Sector Legislative Review On The Digitalization Of Money.
“Raising broader risks such as risks to monetary sovereignty and the ability to conduct monetary policy; competition risks if economic power becomes concentrated in issuers; environmental risks due to power consumption; and illicit finance risks including sanctions circumvention, money laundering, cybercrime and tax evasion.”
The confidential report is due by 2024 and no budget for the review was detailed.
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