Conservative leader Pierre Poilievre says he will oppose a digital currency backed by the Bank of Canada and increase central bank parliamentary oversight. Mr Poilievre has been sharply critical of the Bank of Canada, accusing it of acting as an ATM for the federal government during the COVID-19 pandemic through the central bank’s bond-buying program, also known as quantitative easing (QE). He has also ridiculed the institution for making erroneous inflation forecasts over the past two years and recently called it “financially illiterate”. At a news conference Thursday outside the Bank of Canada building in Ottawa, the Conservative MP reiterated his criticism that he would authorize the Auditor General to oversee the central bank’s balance sheet and transactions. Former party leader Andrew Scheer proposed the idea in a private-member bill in February. “It is the job of elected officials to hold powerful people accountable. “When powerful people hurt everyday citizens with their policies, it is our job, as elected officials, to call them to account for this,” Poilievre said when asked by a reporter if his continuing criticism threatens to erode confidence in central bank. . Mr Poilievre’s opponents of the Conservative Party leadership have been quick to condemn his comments. Former Quebec Prime Minister Jean Charest has called them “irresponsible” and unsuitable candidates for the post of Prime Minister. “Call [the Bank of Canada’s] “The leadership is ‘financially illiterate,’ as Poilievre recently did on Twitter, and the suggestion that politicians should direct monetary policy is extremely worrying,” Charest said in a statement. “These are the things that cause economic crises in other countries and for someone who says he is running for prime minister to make such comments is irresponsible,” he said. Pierre Poilievre wants to make Canada the “cryptographic capital” of the world. Because his populist stadium can find suitable ground Federal documents hint at sweeping financial impact from Bank of Canada “digital loonie” Pierre Poilievre is preparing to overthrow Canadian politics Bradton’s Bradton Mayor Patrick Brown, who is also seeking leadership, described Mr Poilievre’s economic ideas as “dangerous” and detrimental to the Conservative Party’s election prospects, and criticized Mr Poilievre for his vocal support for cryptocurrencies like bitcoin. “Pierre Poilievre does not care if Canadians lose everything, because he told them to bet everything on volatile things like cryptocurrencies on the advice of his YouTube advisors, as long as he promotes cheap phrases and attracts the attention of social media. desire”. Mr Brown said in a statement. The Bank of Canada is considering launching a type of digital dollar that could be used in online transactions. The project is still under development and the decision on whether or not to launch a digital central bank currency (CBDC) rests with the Minister of Finance. Central banks around the world are considering CBDCs as the use of natural cash – the main form of public money provided by a central bank – is declining and online payments are rising. Central banks are worried that they could lose their position at the center of the payment system, which could undermine financial stability and their ability to conduct monetary policy. Mr Poilievre said on Thursday he would oppose a CBDC, arguing that it would give the government more power to track citizens’ spending and that public digital currencies would compete with commercial bank deposits. “A digital central bank currency would mean that Canadians would deposit their money in government and not in a private financial institution, and that the central bank would then be in direct competition with commercial banks,” Poilievre said. The Bank of Canada has said that any CBDC project is likely to involve significant cooperation with the private sector and that privacy will be paramount. However, Mr Poilievre’s critique suggests an important consideration for any CBDC contingency: whether people could transfer their deposits from commercial banks to central bank accounts. Commercial banks rely on deposits to lend, and so a large outflow from commercial bank accounts could affect credit creation in the economy. There have been many CBDC design proposals to reduce this potential problem. Policymakers could limit the amount of central bank digital money a person could hold at a given time, which would effectively treat the CBDCs as insignificant cash for day-to-day transactions, rather than as part of savings storage. Similarly, if a CBDC did not pay interest, interest-bearing commercial bank accounts may retain their appeal as a place to save savings. Asked about Mr Poilievre’s comments, Bank of Canada spokesman Raewyn Passmore said the decision to issue a CBDC was up to Parliament. “Questions about the role of the Auditor General in relation to the Bank must also be decided by MPs,” he said, noting that the central bank is already controlled by two private sector accounting firms – KPMG and Ernst & Young – and the Auditor General. It also has the power to control the bank in its role as fiscal representative in government. Mr Poilievre was asked on Thursday if his criticism of the central bank indicated that he would seek to replace Governor Tiff Macklem. He did not immediately respond to a request for comment, but said “we will change the leadership of the Government of Canada.” The Ottawa MP has made monetary matters a major part of his quest to secure the party leadership, especially by promising to make Canada “the blockchain and cryptocurrency capital of the world.” He said cryptocurrencies such as bitcoin offer Canadians the opportunity to “break free” from inflation. The Bank of Canada Senior Deputy Governor Carolyn Rogers disagreed with the idea in an appearance before the House of Commons Finance Committee on Monday. “The volatility of cryptocurrencies, if you look at the last two years, has been higher than gasoline, higher than the Canadian exchange rate, higher than most commodities. “So we do not see cryptocurrencies as a way for Canadians to stay out of inflation or as a stable source of value.” Mr Poilievre, a longtime lawmaker and former finance critic for the official opposition, is one of many candidates seeking Tory leadership. The party is set to announce a new leader on September 10, who will be elected by party members by ballot by mail. For subscribers: Receive exclusive political news and analysis by subscribing to Political information.
