Canadian Conservatives Against State Digital Currency: What Drives Bill C-400?
Canadian Conservatives Oppose the Introduction of a Central Bank Digital Currency
The Canadian Conservative leader, Pierre Poilievre, has expressed strong opposition to the plans to introduce a central bank digital currency (CBDC) in Canada. According to him, it is necessary to protect cash and cash infrastructure and ensure that the government does not violate fundamental economic principles by digitizing the economy.
Bill C-400 Proposal
Bill C-400, which was introduced in the Canadian parliament by MP Ted Falk, is a response to the increased money supply by the Bank of Canada by half a trillion dollars. According to the proponents of the bill, such government policy has led to inflation and increased citizen debt. The C-400 bill proposal emphasizes that CBDC should remain solely in the private sector, giving citizens the freedom to choose their financial investments.
Purpose of the C-400 Bill
The purpose of the C-400 bill is to prevent the introduction of a central bank digital currency in Canada, ensure the availability of cash throughout the country, and limit government intervention in the financial system. According to Pierre Poilievre and the bill’s authors, decisions regarding money should remain in the hands of citizens, not the government.
Announcement by the Bank of Canada
Research conducted by the Bank of Canada in November of last year showed that citizens prefer using cash supported by the central bank. They are concerned about privacy loss and financial instability associated with the potential introduction of a digital dollar. These results further confirm the need to maintain a cash-based monetary system.
Legislative Process of the C-400 Bill
Although the C-400 bill was introduced to block the creation of a central bank digital currency in Canada, it must go through the legislative process. These actions depend on the changing political landscape, public opinion, and the outcome of parliamentary debate. The entire process is expected to take from several months to up to a year.
The decision regarding the possible introduction of a central bank digital currency in Canada remains subject to discussion and analysis by various political factions.
