Canadian Prime Minister Carney winning the general election...The future of the cryptocurrency industry is uncertain

On the 28th (local time) Prime Minister Mark Carney of Canada, who succeeded in winning the general elections and regained power (Source: AFP)

Prime Minister Mark Carney of Canada achieved re-election in the early general elections, securing new political momentum, but considering his past statements and policy stances, the future of Canada's cryptocurrency industry remains in a foggy state.

In this election, Prime Minister Carney triumphed over Pierre Poilievre, a candidate from the Conservative Party who strongly expressed a pro-Bitcoin stance. Although Carney, who once led the Bank of England and the Bank of Canada, brings a wealth of experience in the economic sector, he is well known for maintaining a consistently skeptical view of cryptocurrencies.

In 2018, he stated, "Bitcoin cannot be a store of value because it exists everywhere and it is not properly used as a medium of exchange." Later that same year, he evaluated, "Cryptocurrencies only operate as currency in a limited sense for some users and are only used in parallel with existing currencies. Ultimately, they are failing."

Nevertheless, Carney is classified as a tech and business-friendly politician, and some see him as having a 'partially pro-crypto' stance. The blockchain-centered political action committee 'Stand With Crypto' also classified him this way. Notably, he has shown a relatively proactive view on stablecoins.

In a 2021 lecture, he argued that stablecoins should follow the regulations of existing commercial banks, emphasizing the need for the application of financial norms, including liquidity requirements. This view is quite similar to the stablecoin regulation 'GENIUS Act' currently being discussed in the U.S. Congress. Accordingly, some experts believe Carney's policy direction may not differ greatly from that of President Donald Trump.

Carney has evaluated blockchain technology itself as ‘interesting’ and while pointing out that the cryptocurrency ecosystem is vulnerable to financial fraud or manipulation, he has also shown a preference for regulation that does not stifle innovation. Additionally, he has taken an open stance on Facebook's stablecoin project ‘Libra’, stating that "if regulation precedes, it could bring innovation to the payment market."

As it stands, it is unclear whether he still maintains his previous critical stance on Bitcoin. However, since the market capitalization of Bitcoin has grown significantly since his critical comments and the correlation with traditional financial markets has changed, it cannot be ruled out that his view may have shifted.

Prime Minister Carney's re-election could serve as a crucial turning point in gauging the direction of Canada's cryptocurrency regulation. Although his position is not giving a definitive signal to the market at the moment, attention is focused on what choices Canada's cryptocurrency policy might make between technological innovation and regulatory balance in the future.