Canada's finance minister resigns citing economic challenges with US

• Canada expands cryptocurrency regulation to curb financial crime.
• Truckers protests: cryptocurrency donations freeze.
• Vancouver studies creation of strategic reserve in Bitcoin.

Chrystia Freeland, Canada's Deputy Prime Minister and Finance Minister, has announced her resignation following disagreements over policies economic talks with Prime Minister Justin Trudeau. In a post on December 16, Freeland said her decision came after being offered a new position in the government. Despite the change, Freeland will continue to serve as a member of Parliament.

See my letter to the Prime Minister below // Veuillez trouver ma letter au Premier ministre ci-dessous pic.twitter.com/NMMMcXUh7A

— Chrystia Freeland (@cafreeland) December 16, 2024

The former minister stressed that the disagreements have intensified due to the possible tariffs that US President-elect Donald Trump is threatening to impose on Canada. “We need to take this threat extremely seriously,” Freeland said, emphasizing the need to avoid political strategies that could undermine Canadians’ confidence in the government’s seriousness in dealing with these economic challenges.

In November, Trump said he planned to impose 25% tariffs on Canadian imports, which could trigger a trade war between the countries. In response, Trudeau visited Trump at his Florida residence, describing the meeting as a “productive dialogue.”

Chrystia Freeland has been at the center of several controversial decisions involving cryptocurrencies in Canada. During the 2022 truck driver protests, when demonstrators blocked streets in Ottawa in protest against COVID-19 restrictions, the Canadian government used the Emergencies Act to freeze bank accounts and monitor financial transactions, including those made with crypto assets. Freeland defended the actions, saying they were necessary to preserve public order and financial security.

The cryptocurrency community has been highly critical of the move, calling it an overreach of authority over citizens’ financial assets. At the time, the government also expanded anti-money laundering laws to include crowdfunding platforms and payment service providers, covering all forms of transactions, including cryptocurrencies.

The move has sparked heated debate over financial freedom and individual sovereignty in the use of cryptocurrencies, putting Canada in the global spotlight over government use of these technologies.

Despite the controversies, Canada has also shown interest in integrating cryptocurrencies into its economic infrastructure. The city of Vancouver recently passed a motion to explore the creation of a Bitcoin reserve, taking inspiration from similar initiatives in the United States. This decision reflects the growth of cryptocurrencies as strategic alternatives, even in a context of strict regulations.

Additionally, Canadian political leaders such as Pierre Poilievre of the Conservative Party have advocated for the use of crypto assets as an alternative to the traditional financial system, promoting greater freedom and economic decentralization. However, price volatility and recent scandals, such as the collapse of FTX, have fueled criticism and doubts about the role of cryptocurrencies in Canada’s economic future.

Freeland, on the other hand, maintained a critical stance on the use generalized of cryptocurrencies, pointing out that they do not offer an effective hedge against inflation and can be used for illicit purposes.