We talk about volatility and nose dives. We also talk about if and when the crypto adoption will happen in Sovereign states. The price action around Crypto currencies makes it a riskier asset class and we all know the argument. Well, it seems like policy makers are looking beyond the volatility and price action and are beginning to make moves to adopt crypto as an economic opportunity.
Bill C-249
A Canadian parliament member, Michelle Rempel Garner from Alberta, introduced Bill C-249 last week to promote the sector’s growth and to lower the barriers to entry into the sector. This is bullish news but there is no certainty that this proposal could bring any significant change at the federal level any time soon. There are political motives and any proposal coming from the opposition will be treated like that. After all, we are in party politics and everybody wants to take credit for innovation and growth. That is my assumption but I am keeping my eyes and ear open to see how this proposal moves forward in the coming months.
Canada should be attracting billions of dollars in investment in the fast growing cryptoasset industry.
— Michelle Rempel Garner (@MichelleRempel) February 9, 2022
Today I introduced a bill, the first of its kind in Canada, to make sure this become a reality.
Learn more about my bill at https://t.co/htCy7rrZD6 pic.twitter.com/krmmTIOTt6
The Bill is titled Encouraging the Growth of the Cryptoasset Sector Act. The Bill introduced the concept of Blockchain tech and notes the growth of digital assets and the significant economic and innovative potential for Canada. It talks about reducing the administrative burden and protecting those working in the sector.
If enacted, the Minister of Finance is required to develop a national framework to encourage the crypto sector with reporting requirements. For that, the government would consult with persons working in the sector who are designated by provinces and territories.
This is a first step towards institutionalizing the sector and making it mainstream.
Political tussle
It is to be noticed that the bill has been put forward by an MP from Alberta and it is a known fact that they may not have very cordial relationship with the current Finance Minister –Chrystia Freeland. I am not too sure where the finance minister stands when it comes to crypto assets but I doubt she would be as progressive as Conservatives (😊). The liberals are focused on central banks and may not be too keen to jump into the crypto bandwagon, yet.
Alberta is pushing the Limit
If we join the dots, it is pretty clear that the push is coming from Alberta. They are not shying away from announcements around crypto industry. I published a post on @leofinance on how Alberta’s premier Jason Kenney tweeted a video to support the crypto innovation and potential economic boom in the province. They are treating crypto as knowledge-based economy and eyeing to diversify their oil-gas based economy. It is a good move.
Of course, there are challenges to properly regulate this new sector. It is also true that the early movers will definitely have the advantage. The crypto industry is gaining momentum and is growing day by day. The current market cap hovers around 2 trillion USD and a small pie of that market would always be nice for jurisdictions like Alberta.
Hut 8 Mining Connection
The proposed Bill did not come out of thin air. Alberta is home to the largest bitcoin mining company called Hut 8 mining that trades on TSX and NASDAQ. They have two mining operations in Alberta and are expanding a facility in Ontario. It looks like they have the strategic advantage to get into the policy play if the proposed Bill is enacted. The Bill suggests to have designated provincial experts and they could well be entering the policy discussion. I am not certain about this. All speculations at this point.
One of the popular Sharks, Kevin O’Leary, who is bullish on crypto welcomed the Bill and said he “could lead billions of investments into the country”. There are ripple effects. Let’s see how far they will go.
Finally a #Canadian politician that gets the joke #Canada has almost unlimited #hydro #Electric power & could lead the world in @green $BTC mining if they got their policy act together. I could lead billions of investment $ into the country if they did! @MichelleRempel https://t.co/MsqPK5S8ug
— Kevin O'Leary aka Mr. Wonderful () February 9, 2022
For now, wait and watch.