The passing of Prime Minister Trudeau in Canada opens up the possibilities of cryptocurrencies

Canadian Prime Minister Justin Trudeau’s announcement on Monday that he is stepping down could pave the way for a less crypto-resistant government there, even though provincial governments have a leading role in determining the future of digital assets in Canada.

Trudeau said in a press conference: “I intend to resign from my position as party leader, as prime minister, after the party chooses its new leader,” pointing to “internal battles” that are disrupting his rule. “I can’t be the person who holds the liberal standard in the next election.”

Trudeau said he will leave his 11-year position as leader of the Liberal Party and the role of prime minister he has held since 2015. Trudeau’s critics in the cryptocurrency community denounced the government’s sanctions on digital wallets during the 2022 Freedom Caravan protests.

Read more: Canada imposes sanctions on 34 cryptocurrency wallets linked to truckers’ “Freedom Caravan.”

Frozen government crypto accounts have resonated beyond Canada, and become a rallying cry among US Republican lawmakers during the 2024 elections. These politicians used this situation as a prime example of the risks of allowing central bank digital currencies (CBDCs) that could demonstrate government interference in cryptocurrency transactions.

Canada’s general election is fast approaching in October, with Conservative Party Leader Pierre Poilievre close in on it It sits on a strong featureAccording to the poll. It also had cross-border appeal to many supporters of US President-elect Donald Trump.

Poilievre has been a vocal supporter of digital assets in the past but has recently been relatively quiet on the topic.

In Canada, securities are a regional matter. Since there is no national securities regulator As with the US Securities and Exchange Commission, the influence that the next leader of the Liberal Party of Canada – and thus the prime minister – or Poilievre might have is limited.

Instead, the Canadian Securities Administration (CSA), an umbrella regulatory body made up of provincial regulators, will have a larger role in what’s next for the cryptocurrency space.

Read more: Polymarket bettors are confident that Justin Trudeau will resign by Friday

One potential contender to replace Trudeau is Mark Carney (since the race has not started yet, he has not officially announced his candidacy), appointed from the Bank of Canada, Carney is the former Governor of the Bank of England, where he was Lots to say About cryptocurrencies and stablecoins.

“The tokens at the heart of programmable networks should remain just token value,” he said during a 2021 lecture at the Bank for International Settlements.

Carney also said that highly regulated stablecoins are the only way they can be successful, and if they are strictly regulated, “what distinguishes them from central bank digital currencies?”