Why Budget 2025 Matters for Bitcoin. And Why Canada Can’t Afford to Ignore It

When I first stumbled across Bitcoin years ago, I wasn't drawn in by dreams of striking it rich. Instead, I was searching for answers. Why does it feel like our economy is on shaky ground? Why does inflation keep climbing while wages barely budge? Why does saving money seem like a losing game compared to the frenzy of borrowing and spending?

Like many of you, I found myself diving deep into the tangled web of economics, monetary policy, and the story of money itself. What I discovered was eye-opening: our financial system isn’t just malfunctioning; it’s built on policies that slowly chip away at our purchasing power. That’s why I always keep an eye on the federal budget. It’s not just about numbers; it reflects how our government views money and, by extension, how it views us. 

This year’s Budget 2025 didn’t mention Bitcoin at all. But if you look closely, it tells us quite a bit about where money is headed in Canada.

A Quiet Acknowledgment
For years, the digital asset world has been living on the outskirts of federal policy, often misunderstood or ignored. But tucked into this year’s budget is something that feels like a turning point: Ottawa is finally starting to acknowledge stablecoins.

The government plans to introduce regulations for fiat-backed stablecoins, digital tokens tied to traditional currencies, and they’ll be under the Bank of Canada's watchful eye. This is a big deal! For the first time, policymakers are admitting what we’ve known all along: digital money isn’t going anywhere.

It may not be Bitcoin just yet, but this acknowledgment is a significant step forward. It opens the idea that money can exist natively online, transparently, borderlessly, and programmably. When governments begin to accept blockchain-based money, it becomes harder to pretend that Bitcoin doesn't matter.

The Shadow Side of Digital Control
But as one door opens, another one quietly shuts. The same budget that gives a nod to digital assets also expands the government’s control over how we use our money. New measures will impose restrictions on cash transactions over $10,000 and prohibit third-party cash deposits.

On the surface, these rules are aimed at combating money laundering. But in reality, they limit our privacy and financial freedom. Once we start accepting that large cash transactions are “too risky,” it’s not a stretch to imagine the same logic being applied to digital transactions, especially when it comes to peer-to-peer Bitcoin payments.

The budget also reinforces Canada’s commitment to the Crypto-Asset Reporting Framework (CARF), which means more financial surveillance and compliance reporting. This is concerning. We’re heading toward a future where every transaction is meticulously tracked, scored, and stored, and where privacy is treated more like a luxury than a right.

Bitcoin wasn’t created for convenience; it emerged out of necessity. It’s a response to a financial system that concentrates power in the hands of a few and leaves the rest of us vulnerable.

A Missed Economic Opportunity
What’s even more frustrating is that Canada is in a prime position to lead the world in Bitcoin infrastructure. But you wouldn’t know it from this budget.

There’s a hefty $925 million allocated for AI compute infrastructure, additional incentives for clean technology, and billions for digital transformation. Yet, there’s no mention of Bitcoin mining or how it could fit into this broader vision.

Bitcoin mining isn’t just about generating digital coins; it’s about turning energy into economic opportunity. In places like Alberta, Saskatchewan, Quebec, and the North, we have a wealth of renewable energy that often goes to waste. By harnessing that energy for Bitcoin mining and AI data centers, we can stabilize our power grids, attract international investment, and create jobs where they’re needed most. The technology and economics line up; what we’re missing is the political will to make it happen.

Implications for the Crypto Sector
This budget has significant implications for the broader crypto landscape in Canada. Here are some key takeaways:

1. Cash Restrictions and Compliance: The proposed restrictions on cash payments over $10,000 and bans on third-party cash deposits will impact businesses, particularly those in the cryptocurrency space. Expect Bitcoin ATMs and cash-in ramps to face tighter controls and increased scrutiny. This could lead to lower transaction limits and more stringent Know Your Customer (KYC) requirements.

2. Crypto Tax Transparency: The intention to implement the Crypto-Asset Reporting Framework (CARF) by January 2027 means that crypto platforms will need to prepare for new tax-reporting requirements. This could increase the compliance burden for cryptocurrency businesses and may deter some investors due to the additional responsibilities.

3. Regulated Stablecoins: The introduction of a framework for regulating fiat-backed stablecoins is a double-edged sword. On one hand, it legitimizes digital assets and could lead to increased adoption. On the other hand, it also brings more oversight and regulatory pressure, which could stifle innovation if not handled carefully. 

4. Increased Surveillance: The budget’s focus on financial surveillance raises concerns about privacy, especially as we see more comprehensive data sharing across agencies. This could further deter individuals from using cryptocurrencies, fearing that their financial activities are constantly monitored.

What This Means for Canadians
Every Canadian should care about this conversation, even if they don’t own a single satoshi. This isn’t just about Bitcoin; it’s about choice.

- Choice over how you save.

- Choice over how you spend.

- Choice over whether your financial future is dictated by inflation, bureaucracy, or innovation.

Bitcoin gives that choice back to people. It’s not controlled by any government, it can’t be inflated away, and it allows everyone, from a farmer in Alberta to a young woman in Toronto, to hold and transfer value on their own terms.

As countries around the world explore central bank digital currencies and tighten financial surveillance, Bitcoin stands as a reminder that money can be sovereign, transparent, and fair. If the goal of this budget is to strengthen Canada’s economy and empower Canadians, then Bitcoin should be part of that plan, not ignored.

The Path Forward
I genuinely believe Canada can lead the way in responsible, energy-driven Bitcoin adoption. But that starts with a government that views Bitcoin not as a threat but as an opportunity.

We need a national approach that:

- Recognizes Bitcoin as a legitimate savings and payment technology.

- Encourages collaboration between miners, innovators, and energy producers.

- Protects Canadians’ right to self-custody and financial privacy.

If Canada wants to stay competitive in this new era of digital money, it can’t just sit back and regulate from the sidelines; it needs to get involved.

Bitcoin isn’t the problem; it’s the solution.

Budget 2025 may not mention Bitcoin by name, but every page reminds us why it’s time to take it seriously.