Ethan Lou: El Salvador’s official adoption of bitcoin as legal tender highlights crypto’s entrance into partisan political arena
El Salvador’s official adoption of bitcoin as legal tender on Tuesday was historic. The merits of it may be debated, but that move, fraught with opposition and spearheaded by a divisive president, is the biggest-yet representation of an important phenomenon: cryptocurrency’s entrance into the partisan political arena.
It has been building for a while, even here in Canada. In 2018, I posed a cryptocurrency question to Rachel Notley, then Alberta’s New Democrat premier. There was a noticeable pause before Notley said, “I think we’ll have to get someone to follow up with you on that.”Just a year later in 2019, however, Jason Kenney, then the provincial Conservative leader, gave a surprisingly on-point take on the subject, noting how Alberta’s energy resources could complement bitcoin mining.
That year had made a difference in the way that politicians viewed crypto and their comfort level in discussing it. The context of Kenney’s remarks was important, too: he made them in the lead up to the 2019 Alberta election.
We are now two years further down the road, in the middle of a bigger, federal election. While I have not seen crypto brought up so far, this is now a vastly bigger and more assertive industry. Future elections will not be as crypto-free as this one.
Setting the stage nicely is the U.S. Senate crypto fracas last month that stalled the White House’s US$3.5 trillion infrastructure bill. The Washington Post said the episode “reflects the extent to which cryptocurrencies — which have emerged as a trillion-dollar industry from obscurity less than a decade ago — have begun to upend politics.”
Cryptocurrencies — which have emerged as a trillion-dollar industry from obscurity less than a decade ago — have begun to upend politics
The crypto-focused HODLpac — a so-called political action committee (PAC), which raises money for ballot-box matters — has seen its Twitter following double and many new inquiries about donations. There is even talk of PACs that are decentralized autonomous organizations (DAOs), leaderless blockchain-based entities that distribute funds based on predefined rules.
Here in Canada, the scene is tamer, like with all things. In the lobbyist registry, all the various crypto names are still represented largely by one firm. But accounting for its smaller population, this country is where crypto has a proportionally bigger presence.
A Torontonian and a Vancouverite, respectively, founded arguably the two biggest cornerstones of the current cryptocurrency space: the computing platform Ethereum and the coin-trading hub Binance, both worth billions. Canada was also home to the world’s first bitcoin ATM and has the highest number of such installations after the United States. A Bank of Canada survey shows even among the unlikely 45-to-54 age group, Bitcoin ownership almost quadrupled in 2017, and it has no doubt soared since then.
Canada is not short on people who may have strong feelings about how cryptocurrency has increasingly butted against regulatory issues. In Alberta, for example, a bitcoin miner has been ordered shut by the province’s utility commission after local residents complained about the noise level. In Ontario, a hawkish securities regulator has caused the popular Binance to stop serving the province.
Already, an Edmonton municipal candidate is running to make hers a “cryptocurrency-friendly city.” In Texas in August, 200 bitcoiners and oil executives mingled and drank beer. They have common cause in how gaseous by-products of oil drilling can be used to mine Bitcoin. A big topic of discussion: political activism.
Some may already see a bit of a partisan divide forming around the issue. Within bitcoin, after all, beats a mistrust of traditional institutions that has become increasingly associated with the right. Bitcoin’s prominent supporters in the United States include Peter Thiel and Steve Bannon, who helped with the rise of President Donald Trump. El Salvador’s man behind its Bitcoin adoption, President Nayib Bukele, leans right.
Cryptocurrency’s haters include people on the other side of the spectrum, such as U.S. Sen. Elizabeth Warren. Here in Canada, they include the big-L Liberal Mark Carney — a former central banker whose potential entrance into politics has been so widely discussed that such talk has become a running joke among observers.
Yet cryptocurrency itself is also a diverse field. One survey, for example, shows that the biggest group among the crypto community leans small-L “liberal.” It is unclear how exactly that survey defines that term, which is another point to consider — that ideology is fluid and relative, and concepts of left and right have become increasingly arbitrary. Andrew Yang, contender for the 2020 U.S. Democratic presidential nomination, is a well-known crypto fan. In Canada, it is, in fact, the federal NDP that tabled resolution at its convention to study cryptocurrency as early as 2016.
Despite the tints of partisanship in the subject, cryptocurrency users are not quite yet a discrete bloc. It’s just that, evidently, this is an issue that is entering the political arena one way or the other. There will come a day when, unlike in this election, cryptocurrency forms a part of every party’s platform.
Ethan Lou is a journalist and author of Once a Bitcoin Miner: Scandal and Turmoil in the Cryptocurrency Wild West, to be released this fall.
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In a move that sent shockwaves through British Columbia’s political landscape, B.C. United leader Kevin Falcon announced on Wednesday that his party would suspend its campaign for the upcoming provincial election and throw its support behind John Rustad’s resurgent B.C. Conservatives. This unprecedented decision has left political watchers and analysts scrambling to make sense of the ramifications for the province’s political future.
Kevin Falcon, who took the reins of the B.C. Liberals—now rebranded as B.C. United—in February 2022, delivered the stunning news at a press conference that left many in disbelief. The former cabinet minister, known for his confidence and assertiveness, appeared uncharacteristically somber and introspective as he explained the rationale behind his decision.
Shachi Kurl, president of the Angus Reid Institute, observed the stark contrast in Falcon’s demeanor. “This is a man who has always exuded confidence, even cockiness, throughout his political career. But today, he seemed on the brink of tears, visibly struggling with the weight of this decision,” Kurl noted. The emotional toll of Falcon’s announcement was evident, underscoring the gravity of the situation both personally and professionally for the B.C. United leader.
The roots of B.C. United’s collapse can be traced back to two key decisions made by Falcon: the expulsion of John Rustad from the party and the controversial rebranding from the B.C. Liberals to B.C. United. Rustad, who was removed from the party in February 2023 for questioning climate change science, quickly capitalized on his dismissal by revitalizing the dormant B.C. Conservative Party. Since then, Rustad has attracted a growing number of former B.C. United MLAs and candidates to his cause, turning the B.C. Conservatives into a formidable political force.
The decision to rebrand the B.C. Liberals as B.C. United, which was meant to signal a fresh start for the party, has been widely criticized as poorly timed and poorly executed. Bill Bennett, a former Liberal cabinet minister, lamented the lack of public understanding of the new brand. “There was no real effort to rebrand and help the public grasp who B.C. United was. The entire process lacked sufficient resources, which ultimately led to its failure,” Bennett said.
Political scientists have been quick to analyze the implications of Falcon’s decision to suspend B.C. United’s campaign. Stewart Prest, a political science lecturer at the University of British Columbia (UBC), expressed shock at the sudden turn of events. “This was a party that, just moments ago, was preparing to compete in this election. To suddenly wave the white flag and step aside in favor of another party is unprecedented. We haven’t seen anything quite like this before,” Prest remarked.
The move has also raised questions about Falcon’s leadership and the future of B.C. United. Gerald Baier, an associate professor of political science at UBC, suggested that Falcon’s decision to expel Rustad may be viewed as the pivotal moment in his leadership. “If Falcon could go back and change one decision, it would likely be the expulsion of Rustad. That move set off a chain reaction that ultimately led to the party’s collapse,” Baier explained.
With B.C. United stepping aside, the B.C. Conservatives are now positioned to become the main opposition to the ruling B.C. NDP in the upcoming election, scheduled for October 19. However, the transition will not be without its challenges. The Conservatives will need to decide which B.C. United candidates to include on their slate, a process that could leave some candidates and voters in a state of uncertainty.
As the political landscape in British Columbia shifts dramatically, the upcoming election promises to be one of the most closely watched and hotly contested in recent memory. The decision by Falcon to back the B.C. Conservatives has not only upended the election but has also reshaped the future of politics in the province. As the dust settles, all eyes will be on John Rustad and his ability to capitalize on this newfound momentum.
In conclusion, Kevin Falcon’s decision to suspend B.C. United’s campaign and endorse the B.C. Conservatives marks a pivotal moment in British Columbia’s political history. The move has raised numerous questions about the future of B.C. United, the leadership of the B.C. Conservatives, and the upcoming election itself. As the province braces for what promises to be a highly volatile election season, one thing is clear: British Columbia’s political landscape will never be the same.
VICTORIA – British Columbia’s auditor general says his office has found no evidence of a conflict of interest in the handling of provincial grants for the zero-emission vehicle sector, after an accusation by a truck maker earlier this year.
Michael Pickup says in a statement the investigation looked into accounting firm MNP’s handling of Advanced Research and Commercialization grant applications, reviewing “a significant amount of information” from the company, the government and all applicants.
Pickup says the results show no evidence MNP wrote grant applications for clients, influenced the evaluation process to benefit clients or used its administering of the program to “recruit” clients for the company’s other services.
In April, the provincial legislature unanimously directed Pickup’s office to examine allegations by electric-hybrid truck maker Edison Motors that MNP was both administering the grants and offering services to help businesses with applications.
The Office of the Auditor General says the allegations from Edison, which is based in Merritt, B.C., suggested MNP “was offering to write grant applications in exchange for a success fee while also deciding who received grant funding.”
MNP said at the time that the allegations were “false and misleading.”
This report by The Canadian Press was first published Aug. 28, 2024.
The Canadian Press. All rights reserved.
Certain solar farms will be banned on prime agricultural land in Ontario as the province expands energy production to meet demand in the coming decades, Energy Minister Stephen Lecce said Wednesday.
Ontario is looking to add some 5,000 megawatts of energy to the grid, with Lecce directing the Independent Electricity System Operator to secure “technology agnostic” energy resources. That means the province will use a mix of natural gas, hydroelectric, renewables, nuclear and biomass energy sources, he said.
But the province is making efforts to protect key agricultural areas in the process, the minister said.
Ground-mounted solar panels will be prohibited on prime agricultural farmland, said Lecce, who pledged the province would “never misuse” those lands.
“Our farmers need more energy more than ever,” Lecce said.
“They need access to to affordable energy and so we made a commitment to work with them on a policy that ultimately will respect prime agricultural land.”
Other energy products being considered on prime agricultural land will now require an impact assessment before proceeding.
The province is also giving power to municipalities to decide if they want a particular energy project.
“Long gone are the days where Queen’s Park imposes projects on unwilling communities, undermining those agricultural areas,” Lecce said.
The news is welcome to farmers, said Drew Spoelstra, the president of the Ontario Federation of Agriculture.
“The new energy procurement framework is a major step forward for Ontario,” he said.
“Reliable and affordable energy is incredibly important to the growth of the Ontario economy, including food production, food processing and the agri-food sector.”
Farmers and Premier Doug Ford’s government have had an up-and-down relationship in recent years in light of the Greenbelt scandal.
The province had said they were going to build 50,000 homes on the protected Greenbelt, which includes prime agricultural land. But several investigations by provincial bodies found the process was flawed as it favoured some developers with ties to the government over others.
Farmers did not like the possible encroachment onto farmland and joined the chorus to denounce the Greenbelt move. Last summer, amid mounting public pressure to reverse course, Ford walked back those Greenbelt plans.
Lecce’s announcement Wednesday comes as the province’s electricity demand is expected to grow by about two per cent each year, although that could be even higher depending on electrification within the broader economy.
The IESO has said the province will need at least 60 per cent more energy by 2050.
Ontario has also recently been adding electricity storage projects, with an eye to about 2,500 megawatts, and the IESO said the province’s emerging battery fleet will pair well with wind and solar, so that the power generated by those methods can be stored and injected into the grid when needed.
Ford cancelled 750 renewable energy contracts shortly after his Progressive Conservatives formed government in 2018, after the former Liberal government faced widespread anger over the long-term contracts with clean power producers at above-market rates.
The province is also moving ahead with nuclear energy expansion, including seeking to refurbish units at the Pickering nuclear plant, build small modular reactors at the Darlington nuclear plant and exploring a new, large-scale plant at Bruce Power.
In 2021, the electricity system was 94 per cent emissions free, but that is now down to 87 per cent as it uses natural gas to meet demand.
This report by The Canadian Press was first published Aug. 28, 2024.
The Canadian Press. All rights reserved.
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