With the new anti-encryption leader in Canada taking office, 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 Canada's general election and became Canada's 24th Prime Minister. The economist, known for his response to the global financial crisis, made a dramatic turn from the ivory tower of the central bank to the vicissitudes of Canadian politics. Carney's victory was driven in part by a surge in anti-Trump sentiment and his promise to give Canada a global leader in emerging technology. For the crypto community, however, Carney's election raises a pressing question: how will his cautious and even critical approach to Bitcoin and decentralized finance shape the future of Canadian cryptocurrency?

A career forged in crisis

Mark Carney's path to premiership is neither traditional nor unimpressive. He was born in Fort Smith, Northwest Territories, Canada, and grew up in Edmonton, Alberta, rooted in Canadian soil, but his career spans the globe. Carney holds an economics degree from Harvard University and a doctorate from Oxford University, starting his career at Goldman Sachs, where he worked for 13 years in New York, London, and Tokyo, gaining 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 President and led Canada through a successful response to the global financial crisis. He introduced innovative policies such as the Emergency Lending Facility and forward-looking interest rate guidance that protected the Canadian economy from the worst shocks. In 2013, Carney became the first non-British governor of the Bank of England in response to the chaos of Brexit and the early days of the pandemic. His calm and data-driven leadership style earned him the nickname "The Rock Star of Central Banking", a title that has been with him since his return to Canada.

After leaving the central bank, Carney shifted to a role of balancing financial and social impact, serving as Chairman of Brookfield Asset Management's Transition Investment Unit and as the UN's 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, when Trudeau resigned due to plummeting approval ratings and the threat of a trade war with the United States, Carney seized the opportunity to win the Liberal leadership with a staggering 85.9% of the vote. His campaign, centered on countering Trump's tariffs and strengthening Canada's sovereignty, has deeply touched people who are anxious about external pressure.

Carney's Cautious Stance on Cryptocurrency: A Central Bank Perspective

Mark Carney's views on cryptocurrencies, and Bitcoin in particular, are deeply rooted in his decades of experience as a central banker. In his view, the stability of the financial system and the centralized control of monetary policy are the cornerstones of economic operation, and decentralized cryptocurrencies pose a challenge to this framework. Back in 2018, Carney gave a speech at the Scottish Economic Conference, where he made it clear that Bitcoin was "seriously flawed". He argues that Bitcoin's fixed supply of 21 million leads to deflationary tendencies, making it difficult to serve as a stable store of value or a reliable medium of exchange. He further elaborated during a Q&A session at Regent's University in London: "Bitcoin has almost completely failed in the functionality of traditional money." In particular, he criticized the sharp price swings, noting that the price of Bitcoin plummeted from nearly $20,000 to below $3,000 between 2017 and 2018, highlighting its unsuitability as a daily trading tool.

Carney's criticism is not limited to the technical flaws of Bitcoin, but also involves its social and economic impacts. In an interview with Bloomberg in 2018, 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 chaotic expansion of the cryptocurrency market could trigger systemic risks similar to the uncontrolled derivatives market before the subprime crisis. Furthermore, Carney expressed concerns about the rise of stablecoins. In a speech to the Bank for International Settlements in 2021, he pointed out that stablecoins supported by tech giants (such as Facebook's planned Libra at the time) could lead to a fragmentation of liquidity in the monetary system, potentially undermining the monetary sovereignty of central banks. He argued 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 been a staunch supporter of Central Bank Digital Currencies (CBDC). He believes that CBDCs 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: "CBDCs can enhance the transmission efficiency of monetary policy while reducing the risks posed by private cryptocurrencies." He particularly emphasized that CBDCs can combat illegal financial activities through traceable transaction records while offering consumers lower transaction costs than 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 toward cryptocurrencies is not entirely negative. During his tenure as a board member of Stripe from 2021 to 2025, the company launched payment solutions that support cryptocurrencies, allowing merchants to accept digital assets like Bitcoin. This indicates that Carney at least recognizes the potential of cryptocurrencies in specific business scenarios, provided they are subject to strict regulation. Carney stated at a fintech conference in 2021: "Blockchain technology itself has revolutionary potential, but its applications must align with the public interest." This position reflects the balance he strikes between supporting technological innovation and reserving some skepticism towards 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 the risks of 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 well 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 wildly outside of regulation.

The "tightening spell" of cryptocurrency: Where does Canada go from here?

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

Firstly, Carney may promote the development of CBDCs. His long-term support for a Canadian digital dollar resonates with the Bank of Canada's ongoing exploration of CBDCs. Unlike the decentralized nature of Bitcoin, CBDCs will give governments comprehensive regulatory power over transactions, which concerns pure cryptocurrency advocates. 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 CBDCs may exacerbate public skepticism toward 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, transparent data management could complement this. However, any blockchain development may occur within a regulated, government-approved framework, potentially marginalizing 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 struggle."

Third, Carney's focus in responding to U.S. tariffs may be to 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 diversifying trade partners—shows 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 U.S. President Trump and former Canadian Prime Minister Justin Trudeau.

Donald Trump: The Anti-Crypto Side

Trump's second term starting in January 2025 unexpectedly shifted towards supporting cryptocurrency issues. He signed 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 invigorated the U.S. crypto community. His policies directly oppose Carney's position, potentially creating rifts in U.S.-Canada relations.

Carney advocates for centralized control and CBDC, while Trump embraces decentralization, which may attract crypto investments to the United States. Canadian crypto startups, already facing strict regulations, may find the U.S. more appealing. Furthermore, Trump's tariffs and threats of annexation have dominated Canadian political discourse, downplaying domestic issues such as crypto regulation. Carney's focus on countering Trump's economic aggression may leave little time to formulate detailed crypto policies, further entrenching conservative positions.

Justin Trudeau: Continuity and Change

Carney's predecessor Trudeau also held a skeptical view of 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' protest in 2022 to curb protest funding. Carney's views align closely 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 suggests a more strategic approach to digital finance, potentially integrating blockchain into government services while maintaining a distance from decentralization. However, unlike Trudeau, who has years of experience as an elected official, Carney lacks electoral 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 appointment to the Prime Minister's Office may reflect his broader governing philosophy regarding cryptocurrency policy: prudent, cautious, and prioritizing stability. His skepticism towards Bitcoin and decentralized finance, stemming from his central banking background, suggests that Canada's crypto industry will face stricter regulations and the advancement of CBDCs. However, his commitment to technological leadership opens the door for blockchain innovation, provided it aligns with government priorities.

For the Canadian crypto community, the challenge lies in promoting decentralization within 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 said: "Digital finance will soar, 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, representing a technocratic blueprint for the technological era. 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-responsive banker, as he faces his biggest challenge yet: leading Canada through the unknown waters of trade wars, technological revolutions, and digital finance.