With the new anti-encryption leader taking office in Canada, where is the crypto market headed?

Written by: Luke, Mars Finance

On April 28, 2025, Mark Carney, the former governor of the Bank of Canada and the Bank of England, led the Liberal Party to a landslide victory in the Canadian election, becoming the 24th Prime Minister of Canada. This economist, known for his response to the global financial crisis, made a dramatic turn from the ivory tower of central banking to the tumultuous world of Canadian politics. Carney's victory was partly due to the surge in anti-Trump sentiment and his promise to position Canada as a global leader in emerging technologies. However, for the cryptocurrency community, Carney's election raises an urgent question: how will his cautious, even critical, stance on Bitcoin and decentralized finance shape the future of cryptocurrency in Canada?

Career forged in crisis

Mark Carney's path to premiership is neither traditional nor unremarkable. He was born in Fort Smith in Canada's Northwest Territories and grew up in Edmonton, Alberta, rooted in Canadian soil, but his career has spanned the globe. Carney holds a degree in economics from Harvard University and a doctorate from Oxford University. His career began at Goldman Sachs, where he worked for 13 years in New York, London, and Tokyo, accumulating experience in navigating complex financial systems.

In 2003, Carney joined the Bank of Canada as Deputy Governor; in 2008, at the age of 42, he was appointed Governor, leading Canada successfully through the global financial crisis. He introduced innovative policies such as emergency lending facilities and forward guidance on interest rates, protecting the Canadian economy from the most severe impacts. In 2013, Carney became the first non-British Governor of the Bank of England, addressing the chaos of Brexit and the early days of the COVID-19 pandemic. His calm and data-driven leadership style earned him the title of "rock star of central banking," a moniker that has followed him back to Canada.

After leaving the central bank, Carney turned to a role that balanced financial and social impacts, serving as the chairman of the transformation investment department at Brookfield Asset Management and as the UN Special Envoy for Climate Action and Finance. In 2024, he began advising then-Prime Minister Justin Trudeau on economic growth, paving the way for his own political ambitions. In January 2025, Trudeau resigned amid plummeting approval ratings and threats of a trade war with the United States, and Carney seized the opportunity, winning the Liberal leadership with an astonishing 85.9% of the vote. His campaign focused on opposing Trump's tariffs and enhancing Canadian sovereignty, deeply resonating with a populace anxious due to external pressures.

Carney's Cautious Attitude Towards Cryptocurrency: A Central Bank Perspective

Mark Carney's views on cryptocurrencies, particularly his stance on Bitcoin, are deeply rooted in his decades of experience as a central banker. He believes that the stability of the financial system and the centralized control of monetary policy are the cornerstones of economic functioning, and that decentralized cryptocurrencies challenge this framework. As early as 2018, Carney delivered a speech at the Scottish Economic Conference, explicitly pointing out that Bitcoin has "serious flaws." He argues that Bitcoin's fixed supply of 21 million coins leads to deflationary tendencies, making it difficult to serve as a stable store of value or a reliable medium of exchange. In a Q&A session at Regent's University London, he elaborated further: "Bitcoin has failed almost completely in the functions of traditional currency." He particularly criticized its price volatility, noting that Bitcoin's price plummeted from nearly $20,000 to below $3,000 between 2017 and 2018, highlighting its unsuitability as a tool for everyday transactions.

Carney's criticism is not limited to the technical flaws of Bitcoin, but also involves its social and economic impacts. In a 2018 interview with Bloomberg, he stated that the anonymity of Bitcoin makes it a breeding ground for money laundering and illegal transactions, threatening the integrity of the financial system. He warned that the disorderly expansion of the cryptocurrency market could trigger systemic risks, similar to the uncontrolled financial derivatives market before the subprime crisis. In addition, Carney also expressed concerns about the rise of stablecoins. In a 2021 speech to the Bank for International Settlements, he pointed out that stablecoins supported by tech giants (such as the Libra that Facebook planned to launch at the time) could lead to the fragmentation of liquidity in the monetary system and could even undermine the monetary sovereignty of central banks. He believes that the centralized nature of stablecoins—controlled by a few companies—not only fails to address the volatility issues of decentralized cryptocurrencies but also introduces new governance risks.

At the same time, Carney has always been a staunch supporter of Central Bank Digital Currencies (CBDC). He believes that CBDC can not only provide the convenience of digital payments but also ensure financial stability and regulatory transparency through centralized management. In a speech in 2020, he stated: "CBDC can enhance the transmission efficiency of monetary policy while reducing the risks posed by private cryptocurrencies." He specifically emphasized that CBDC can combat illegal financial activities through traceable transaction records while providing consumers with lower transaction costs compared to existing payment systems. Carney's position aligns with global central bank trends, such as the People's Bank of China's digital yuan experiment and the European Central Bank's digital euro plan.

However, Carney's complex attitude towards cryptocurrencies is not entirely negative. During his tenure as a board member of Stripe from 2021 to 2025, the company launched a payment solution that supports cryptocurrencies, allowing merchants to accept digital assets like Bitcoin. This indicates that Carney recognizes the potential of cryptocurrencies in specific business contexts to some extent, but only under strict regulation. At a fintech conference in 2021, Carney stated, "Blockchain technology itself has revolutionary potential, but its applications must align with the public interest." This stance reflects a balance between his support for technological innovation and his reservations about decentralized ideals. He may be more inclined to use blockchain technology in controlled scenarios such as supply chain management, cross-border payments, or digital identity verification, rather than in an anarchic cryptocurrency ecosystem.

Carney's background in central banking makes him extremely sensitive to risks in the financial markets, which partly explains his cautious attitude towards cryptocurrencies. As a former decision-maker who dealt with the global financial crisis and Brexit, he is acutely aware of the ripple effects that financial innovation can bring. In his speech to the UK Parliament in 2019, he mentioned: "The rapid development of cryptocurrencies requires a globally coordinated regulatory framework; otherwise, we may repeat the mistakes of the 2008 financial crisis." This systemic thinking leads him to prefer integrating digital finance into the existing financial system rather than allowing it to grow unchecked outside of regulation.

The "tightening spell" of cryptocurrency: Where is Canada heading?

Carney's tenure as Prime Minister may bring a cautious and strict regulatory environment for Canada's cryptocurrency industry. Unlike Conservative leader Pierre Poilievre, who openly supports cryptocurrency and criticizes Trudeau's anti-crypto policies, Carney's campaign platform emphasizes "prudent" innovation. Morva Rohani, Executive Director of the Canadian Web3 Council, told Cointelegraph that cryptocurrency is unlikely to become a major election issue, as more pressing matters like housing, affordability, and Trump's tariffs dominate the agenda. However, Carney's past comments suggest that digital finance will not be ignored - it will simply be tightly regulated.

First, Carney may promote the development of CBDCs. His long-standing support for the Canadian digital dollar resonates with the Bank of Canada's ongoing exploration of CBDCs. Unlike the decentralized nature of Bitcoin, CBDCs would grant governments comprehensive regulatory power over transactions, which raises concerns among cryptocurrency purists. The memory of the Trudeau government's freezing of bank accounts and crypto transactions during the truckers' protest in 2022 is still fresh, and Carney's ideological alignment with Trudeau on the CBDC issue may intensify public skepticism towards cryptocurrencies.

Secondly, Carney has committed to positioning Canada as a leader in "artificial intelligence, technology, and the digital industry," which may provide opportunities for blockchain innovation, but only under strict constraints. His agenda emphasizes AI-driven economic reform, and the potential of blockchain in secure and transparent data management could complement this. However, any blockchain development may proceed through a regulated, government-approved framework, which could marginalize decentralized protocols like Bitcoin and Ethereum. Users on the X platform, such as @JinJooWon, reflect this sentiment, stating that Carney's policies could "ignite blockchain innovation" but make "decentralization a tough road."

Third, Carney's focus on responding to U.S. tariffs may limit the growth of cryptocurrencies. Trump's trade war, including a 25% tariff on Canadian steel and aluminum and broader tariff threats, has raised concerns about an economic recession. Carney's response—retaliatory tariffs and diversification of trade partners—demonstrates a pragmatic and risk-averse stance. In this context, the volatility and regulatory uncertainty of cryptocurrencies may be seen as a burden rather than an asset.

Kani VS Trump and Trudeau: The Ice and Fire of Cryptocurrency

To understand Carney's potential impact on cryptocurrency, it is necessary to compare him with former US President Trump and former Canadian Prime Minister Justin Trudeau.

Donald Trump: The Opposite of Pro-Crypto

Trump's second term starting in January 2025 unexpectedly shifts to support cryptocurrency issues. He signs an executive order banning the dollar CBDC while establishing a strategic reserve for Bitcoin, contrasting sharply with his stance during his first term. Trump's support for cryptocurrency as a tool against inflation has sparked enthusiasm in the U.S. crypto community. His policies stand in direct opposition to Carney's position, potentially creating rifts in U.S.-Canada relations.

Carney advocates for centralized control and CBDCs, while Trump embraces decentralization, which may attract crypto investments to the U.S. Canadian crypto startups are already facing strict regulations and may find the U.S. more appealing. Additionally, Trump's tariffs and threats of annexation dominate the political discourse in Canada, overshadowing domestic issues such as crypto regulation. Carney's focus on addressing Trump's economic aggression may leave little room for formulating detailed crypto policies, further reinforcing a conservative stance.

Justin Trudeau: Continuity and Change

Carney's predecessor, Trudeau, was also skeptical about cryptocurrencies. In 2022, he condemned Poilievre's pro-crypto platform as "reckless." The Trudeau government prioritized the development of CBDCs and froze crypto transactions during the truckers' protests in 2022 to curb protest funding. Carney's views are highly aligned with Trudeau's stance on CBDCs, but his experience in global finance and technocratic style set him apart.

Trudeau's crypto policy is reactive, driven by political crises, while Carney's policy may be more proactive, rooted in his central bank philosophy. His emphasis on artificial intelligence and technology indicates a more strategic attitude towards digital finance, potentially integrating blockchain into government services while maintaining a distance from decentralization. However, unlike Trudeau, who has years of experience as a legislator, Carney lacks elected political experience and may be less attuned to public sentiment, especially among young Canadians who support crypto policies.

The long road ahead: Balancing innovation and control

Carney's assumption of the Prime Minister's Office may reflect his broader governing philosophy regarding cryptocurrency policy: prudent, cautious, and stability-first. His skepticism towards Bitcoin and decentralized finance, stemming from his central bank background, suggests that Canada's crypto industry will face stricter regulations and the advancement of CBDCs. However, his commitment to technological leadership opens doors for blockchain innovation, provided it aligns with government priorities.

For the Canadian crypto community, the challenge is to promote decentralization in a regulated environment. Carney's global vision and crisis management expertise make him a strong leader, but his top-down approach may conflict with the bottom-up spirit of crypto. As one X user put it: "Digital finance will soar, but will decentralization struggle?" The question is not whether Carney will shape the future of crypto in Canada—he will—but whether he can find a balance between innovation and control.

Compared to Trump's pro-crypto policies and Trudeau's reactive measures, Carney's vision is both ambitious and cautious, serving as a technocratic blueprint for the technological age. Whether this vision can elevate Canada's technological leadership or stifle its crypto potential remains to be seen. Currently, the world's attention is focused on Carney, the crisis-response banker, who is facing his biggest challenge yet: leading Canada through the unknown waters of trade wars, technological revolutions, and digital finance.