Federal Liberals Setting Up For Central Bank Digital Currency (CBDC) In 2023 Budget

Back in 2022, The National Telegraph reported on the LIberals including an allotment of money to investigate the creation and implementation of a Chinese-style (digital Yuan) Central Bank Digital Currency (CBDC) in Canada. $17.7 million was put towards this initiative, and despite there being a large portion of Canadians objecting to this move, the Liberals have alluded to their CBDC plans in the 2023 budget, but far quieter this time.

The 2022 budget stated:

Budget 2022 also proposes $17.7 million over five years, starting in 2022-23, to the Department of Finance to lead the review.The review will examine, among other factors: how to adapt the financial sector regulatory framework and toolbox to manage new digitalization risks; how to maintain the security and stability of the financial system in light of these evolving business models and technological capabilities; and the potential need for a central bank digital currency in Canada.’

The $17.7 allotment in 2023 is supposed to last the federal government until 2026 for studying the implementation of a Canadian CBDC, and in budget 2023, despite no extra funds being put towards CBDCs, the federal government acknowledges their digitized money goals. 

The Liberals mainly speak about their anti-crypto/Bitcoin plans in their budget but allude to their “digitization of money” review from the 2022 budget.

The 2023 budget states:

The federal government launched targeted consultations on crypto-assets as part of the review on the digitalization of money announced in Budget 2022. Moving forward, the government will continue to work closely with partners to advance the review, will bring forward proposals to protect Canadians from the risks of crypto-asset markets, and will provide further details in the 2023 fall economic and fiscal update.

Although that statement appears vague on the government’s own CBDC plans, Canada’s Central Bank has been continuing to roll out plans for CBDCs, which they pitch as the “stable” version of crypto-assets. 

In the 2023 budget the Liberals are no doubt trying to rip down private crypto-assets (including Bitcoin, which is not exactly the same as crypto) before eventually unveiling their own digitized version of the Canadian dollar as the safe alternative.

The reason so many, including Conservative Party leader Pierre Poilievre, oppose CBDCs is because they allow for far deeper market manipulation from the central bank, and the ability for the government of Canada to have a backdoor into citizens’ bank accounts and transaction history. Today the government can freeze bank accounts and seize assets, which happened after the 2022 Freedom Convoy, but a CBDC would make it so the government wouldn’t even have to strong-arm the banks into doing its bidding. 

It is at least a good sign that the Liberals did not explicitly use the term Central Bank Digital Currency or talk in any detail about their ongoing plans to try and force the use of a CBDC in Canada. It’s a deeply unpopular policy and more Canadians should know about it so they can vote against the Liberals pushing for CBDCs.