44th Parl. 1st Sess.
November 21, 2022 11:00AM
Madam Speaker, thank you for the opportunity to talk about Bill C‑249, an act respecting the encouragement of the growth of the cryptoasset sector. I would also like to thank my colleague from Calgary Nose Hill for bringing this important matter to our attention.
This bill would require the Minister of Finance to develop a national framework to encourage the growth of the cryptoasset sector and, in developing the framework, to consult with persons working in the sector who are designated by provinces and territories. I believe this bill merits careful study. I realize that it is well-intentioned, but we must also consider the risks it poses to the country and to all Canadians. Financial innovation can certainly provide significant benefits, such as making payments more efficient, offering a broader range of services and reducing costs for consumers. This change may also make financial services more inclusive and more responsive to the changing needs of consumers and businesses.
In fact, on March 22, the government announced its intention to move forward with open banking in Canada. Open banking, or consumer-directed finance, is a system that enables consumers to transfer their financial data between financial institutions and accredited third parties in a secure and consumer-friendly manner.
Modernizing the open banking system and payment services will benefit consumers and businesses by offering more choices in the financial services sector at lower cost. These initiatives will also enhance the security and soundness of the Canadian financial system. The government remains committed to modernizing payment services in a way that is responsible and prudent. This modernization must benefit Canadians while maintaining the security and integrity of the financial system.
However, getting back to Bill C-249, it is important to understand that, while cryptoassets are innovative financial products, they pose very significant risks to consumers and to the security and integrity of the Canadian financial system.
The recent protests in downtown Ottawa and at border crossings across the country are an excellent example. Indeed, cryptoassets greatly contributed to funding the protests, which threatened the country's national security for several weeks. Without a doubt, it is vital that any regulatory regime governing cryptoassets balance innovation in the financial system with any possible associated risks in order to ensure that our financial system is safe and secure and benefits all Canadians.
This bill merely seeks to promote growth in this sector, but this approach definitely does not serve the fundamental interests of Canada.
I will now speak about cryptoassets and illegal activities. I would like to remind my colleagues that cryptoassets play an important role in facilitating illicit activities such as fraud, cybercrime and money laundering, among others. This is because not all cryptoasset transactions are subject to the same rules to counter money laundering and terrorist financing, or to the same consumer information requirements.
It is important to understand that cryptoassets are decentralized and based on blockchain technology. This means that cryptoasset transactions can take place beyond our borders, either on numerous exchange platforms, of which there are eight at present, or on peer-to-peer exchanges. Clearly, this creates significant risks for the consumers and investors who participate in these activities. For example, the lack of a framework to protect consumers and investors makes them more vulnerable to fraud.
We were reminded by recent protests in Canada that were financed with cryptoassets that there is also a real risk for our national security. Unfortunately, Bill C‑249 does not address any of these risks.
Instead of blindly supporting the growth of cryptoassets, I think the government should focus its efforts on finding solutions and properly take into account the role that cryptoassets play in facilitating illicit activity.
What is more, given the more global nature of cryptoassets, I think the government needs to work with the provinces to adopt an approach to cryptoassets that is consistent with international standards and best practices. By adopting such an approach, we would limit the risk to Canada's financial system and protect the interests of Canadians.
In conclusion, imagine if every senior had invested their savings into cryptocurrency on the recommendation of the Conservative leader. What position would they be in today?
The bill introduced by the member for Calgary Nose Hill raises some rather complex questions. To me, the main problem is that Bill C‑249 seeks exclusively to encourage growth in the cryptoasset sector, without taking into consideration the major risk it poses to the financial system and Canadian consumers.
As I was saying, cryptoassets play a major role in facilitating illicit activity such as fraud, cybercrime and money laundering, among others. Recent demonstrations across the country are a good example. We have to assume that there is always a risk.
It would make more sense for the government to work on a comprehensive approach to the regulation of cryptoassets that would both support growth and limit the risks to the financial system and consumers.
According to the Conservatives, cryptocurrency is still a good investment. The recent drop in cryptocurrency would have jeopardized the investments of middle-class families and seniors. However, seven months ago, during his leadership campaign, the leader of the Conservative Party encouraged Canadians to avoid inflation by investing in cryptocurrency.
Today, we know that sound financial management does not involve cryptocurrency. Right now, our government is taking a more comprehensive approach and working to more strictly regulate cryptoassets in order to support growth, limit the risks to the financial system and help consumers. Today's cryptocurrency will do nothing to balance consumers' investments.
I am grateful to have had the opportunity to talk about cryptocurrency. I hope all members will unite to vote against this bill.
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Madam Speaker, the very fact that we are having this debate is disappointing enough, but it is even more disappointing to hear once again how the New Democrats have completely surrendered to the Liberal Party and become literally the lapdogs of the Liberal government. I was on the finance committee—
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Madam Speaker, it is always a privilege to rise in the House to represent the incredible people of Medicine Hat—Cardston—Warner.
Today, as we debate the fall economic statement, Bill C-32, I find it challenging to speak to the government's financial priorities. The priorities of the Liberal government differ dramatically from the priorities of Canadians and the official opposition. We have fundamentally different beliefs, and we generally disagree on the role government should play in the lives of Canadians.
This is a politically charged financial statement with two objectives: first, for the Liberals to spend enough money to buy the support of the NDP so their Liberal-NDP political love story can continue; and, second, to divide Canadians based on an ideological framework regardless of the financial or political consequences.
Canadians are tired. We have been stretched emotionally and spiritually, and now we have been physically pushed beyond our limits, especially over the last two and a half years. Like an overworked body, we need time to rest and recover. We need a sense of normality and hope, but that is not what is happening here. Canada is facing a cost of living crisis brought on by years of overspending, excessive borrowing and money printing, though the government will say it is quantitative easing, which has created the highest rates of inflation in decades.
Of late, the Bank of Canada has been raising interest rates at an unprecedented pace, and it is not done yet, all in an effort to curb the inflationary trend. The government has doubled Canada's debt in the last seven years, and the Prime Minister, as has been said many times before, has added more debt than all prime ministers in the history of Canada combined. For those trying to keep track of that at home, that is over half a trillion dollars.
The Liberals would have us believe that they had no choice, given the pandemic. However, 40% of all new spending and measures has nothing to do with COVID. That is over $200 billion. The resulting national debt interest payment costs have doubled, and next year those interest payments will be nearly as much as the Canada health transfers to the provinces. Let us just think of the impact of that.
I am sure that members of the House recall the Prime Minister, the current finance minister and the previous finance minister touting how inexpensive it was for the government to borrow money. This is no longer the case. Now Canadians are stuck repaying their bills at these new and much higher interest rates.
The only person with any fundamental financial understanding back then and now is the Conservative leader. He warned the finance minister back in December of last year. She was asked what impact a 1% average increase on interest rates would have on Canada's national debt. She was unable to provide any number. The crushing part is that rates did not go up 1%. They are up 3.5%. A finance minister who could not fathom a 1% increase when questioned was clearly unprepared for that eventuality.
Now we are in a situation where the reality is substantially worse than that, yet the finance minister remains equally as oblivious to the situation and as arrogant to her colleagues as she was a year ago. In her fall update, she should have been singing the praises of the Leader of the Opposition. After all, he was clearly the only one with both the foresight and understanding that interest rates would not remain at historic lows forever and the conviction to ensure that the government had a plan.
During this time of self-induced financial uncertainty, the government needs to partner with Canadians and not continue to punish them. Let us take small business owners, for example. They are the unsung heroes of Canada's economy. They employ nearly two-thirds of workers across the country and take on incredible risk to provide the necessary goods and services to our communities, yet under the Liberal government, small businesses are being punished with rising payroll taxes, an increasing carbon tax, labour shortages and staggering inflation, which is driving up the cost of everything.
This fall economic statement was the Liberals' chance to let Canadians know that the Government of Canada is a strong and stable partner, and they failed. It was the Liberals' chance to rein in spending and focus on getting the country's financial house in order, but they failed there, too. It was their chance to acknowledge that a carbon tax only hurts Canadians who are struggling to make ends meet, but Liberals let Canadians down there, too.
Sadly, the Liberal plan does nothing to address the cost of living crisis and government overspending. Rather, it shows that government revenues have increased by $40 billion this year alone. This not only means that inflation is increasing the cost of everyday essentials, but it also means there is an increase in taxes while the Liberal government is profiting from increased inflation on the backs of already struggling Canadians.
Canada's Conservatives had two clear expectations and demands of the government, as did Canadians: stop the taxes and stop the spending. Stopping the taxes means no new taxes and includes cancelling all planned tax hikes and the increasing of the carbon tax. Stopping the spending means no new spending and that any new spending by ministers must be matched by an equivalent saving. None of those demands were met in the fall economic inflationary update.
As I stated recently in the House, all that Canadians really need to thrive and survive is individual freedom and good government. I believe a good government is for the people, not of the people, and is transparent. It acknowledges that every time a dollar is given away, it must first be taken from a Canadian who went to work to earn it. It is a government that makes life more affordable for Canadian, not by creating more cash but by creating more of what cash can buy, and understands that ethically produced and environmentally responsible Canadian energy helps fuel our economy and should fuel the world. It is a government that knows carbon taxes will not tackle climate change and that focuses on promoting Canadian technology to the world, making alternative energy cheaper, not making Canadian energy more expensive. It is a government committed to reforming the tax and benefit system so that those who work can keep more of what they earn, and one that offers Canadians hope and creates an environment to succeed and prosper.
Freedom and good government are exactly what the Conservative leader, my Conservative colleagues and I are intent on providing Canadians. Buckle up folks. The fight to get Canada back on track has started.
It starts with removing the carbon tax, which is further burdening already struggling Canadians. It starts by helping the finance minister understand that her plan to print, borrow and spend on political pet projects needs to end. It starts by voting down this misguided and hyperpartisan fall economic statement. I ask my colleagues to please join me in ensuring that this bill does not pass.
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