The Money You Were Handed
You did not choose the Canadian dollar. It was handed to you — by birth, by circumstance, by the borders drawn around the place you happened to be born. Between 2020 and 2024, the Canadian dollar lost approximately 30% of its purchasing power. Not through your choices. Through decisions made by the Bank of Canada — without your vote, without your consent, and without any mechanism for you to object.
Inflation is not an act of nature.
It is a policy choice.
And someone else made it for you.
Every dollar you saved in 2019 is worth roughly 70 cents today in real purchasing power. That is not a market outcome. That is the result of deliberate monetary expansion. The question is not whether this happened. The question is whether it should have happened without your knowledge, and what — if anything — you can do about it.
Who Actually Paid the Price
Monetary expansion does not affect everyone equally. It transfers wealth from those who hold savings in cash to those who hold assets — property, equities, and anything with a price that rises with inflation. The person who owns a home in 2020 watches its value climb. The person saving in a bank account watches their purchasing power fall. The policy looks neutral. Its consequences are not.
These are not hypothetical victims. They are the people inflation was not supposed to hurt — the careful, the patient, the ones who trusted the system. The monetary expansion that eroded their savings was legal, deliberate, and never put to a public vote.
What Bitcoin Actually Is
Bitcoin is a monetary network with a fixed supply. There will only ever be 21 million Bitcoin. That number cannot be changed by a government, a central bank, a corporation, or any individual. It is written into the protocol — enforced not by law, which can be changed, but by mathematics and distributed consensus, which cannot.
This is the entire point. Every other store of value in human history — gold, land, fiat currency — has been subject to supply expansion by those in power. Bitcoin is the first monetary asset in history where the supply schedule is known in advance, enforced algorithmically, and cannot be altered by any authority. No government can inflate it. No sanctions can seize it from a sovereign holder. No foreign power can freeze it.
The Law That Was Never Updated
The Bank of Canada Act — the legislation governing what Canada can hold as reserve assets and how monetary policy is conducted — was written in an era when "currency" meant physical notes and "reserve assets" meant gold and foreign sovereign debt. It has never been updated to contemplate digital assets. Not to permit them. Not to prohibit them. It simply does not acknowledge that they exist.
Canada's legal framework for monetary reserves was designed for a world that no longer exists. The United States has updated its framework and established a Strategic Bitcoin Reserve. The Czech National Bank has voted to study reserve allocation in digital assets. Meanwhile, the Bank of Canada Act has not been meaningfully amended to address the monetary reality of 2026. A country whose reserve law does not acknowledge digital assets has not made a policy decision. It has made an omission — and omissions have consequences.
This is not a radical legal observation. It is a straightforward one. The law governing Canada's monetary reserves was not written for a world with Bitcoin. That does not mean Bitcoin should be ignored. It means the law needs to be examined — openly, with parliamentary debate, with published findings — rather than allowed to silently exclude an asset class that the rest of the developed world is actively evaluating.
This Is Not Fringe Thinking Anymore
Six in ten Fortune 500 executives say their firms are running on-chain initiatives — with the average number of projects per company jumping 67% year-on-year, according to Coinbase's 2025 State of Crypto report. By late 2025, over 200 public companies worldwide held Bitcoin on their balance sheets, nearly three times more than the year before, collectively holding over 688,000 BTC. Eighty-three percent of institutional investors surveyed said they plan to increase their crypto positions.
Fortune 500 balance sheets are moving toward holding over a trillion dollars in digital assets by end of 2026. Corporations are moving toward Bitcoin. The Canadian government just committed $63 billion to weapons. Canada has no digital asset policy position at all. Not a rejection. Not an endorsement. Silence. In a world that is moving, silence is a decision.
The United States established a Strategic Bitcoin Reserve in 2025. El Salvador has held Bitcoin as a national reserve asset since 2021. The Czech National Bank voted to explore Bitcoin reserve allocation. These are sovereign states responding rationally to a monetary landscape that has changed fundamentally. Canada has no policy position at all — and the law governing its reserves has never been updated to acknowledge that the question even exists.
The Infrastructure Has Already Shifted
In March 2026, Visa and Stripe announced the expansion of stablecoin-linked Visa cards to over 100 countries by end of year — already live in 18 countries, allowing users to spend stablecoin balances at Visa's 175 million merchant locations worldwide. In December 2025, Visa launched USDC settlement in the United States, enabling banks to settle transactions directly on-chain. Stablecoin transfer volume hit $33 trillion in 2025 — a 72% increase year-on-year, exceeding Visa's own transaction volume for the same period.
Visa is not fighting digital assets.
It is building its next decade on top of them.
This is the direction global finance is moving. Not because Bitcoin advocates are persuasive. Because the economics are real, the infrastructure is being built, and the institutions that spent decades dismissing digital assets are now racing to integrate them. Canada can participate in shaping this shift — or it can arrive late and on others' terms.
A note on stablecoins: Sovereign Party Canada's position is Bitcoin specifically — not stablecoins, which remain subject to issuer control and are a fundamentally different instrument. We cite Visa and Stripe's shift as evidence that the direction of global finance is irreversible. We do not endorse stablecoins as a savings vehicle or reserve asset.
Our Specific Proposal — And What It Is Not
Sovereign Party Canada proposes that the Bank of Canada allocate 1% of Canada's foreign reserve assets to Bitcoin, held in self-custody by the Government of Canada, with full public auditability of the holdings.
A modest hedge — 1% of reserves, not a speculative bet
Self-custodied — Canada holds the keys, not a third party
Fully auditable — every citizen can verify the holdings on-chain
A starting position — reviewed annually by Parliament
A speculation — this is reserve diversification, not a trade
A replacement for the Canadian dollar
An endorsement of crypto speculation, altcoins, or stablecoins as savings
A commitment to expand the position without parliamentary review
The Tax Question
Currently, every time a Canadian converts Bitcoin to Canadian dollars — even to pay a bill — it is a taxable event. This makes it impractical as an everyday savings tool for ordinary Canadians.
A Canadian who saves in gold pays no GST.
A Canadian who saves in Bitcoin pays HST on every conversion.
We would advocate for removing GST/HST from Bitcoin-to-Canadian dollar conversions and for treating long-term Bitcoin holdings as a capital asset with equivalent treatment to real estate. This is not a tax giveaway. It is tax neutrality — the same principle that already applies to other savings instruments. Canadians who choose to save in a non-inflationary asset should not be penalised for doing so.
The Sovereignty Argument
Canada currently holds its foreign reserves primarily in US dollars, euros, and gold. These are sound choices — but they are not without risk. The weaponisation of the SWIFT system after 2022 demonstrated that reserve assets denominated in foreign currencies can be frozen by foreign governments. Bitcoin in self-custody is immune to all of these vulnerabilities.
No government can inflate it.
No foreign power can seize it.
No sanction can freeze it.
Three Specific Changes We Would Make
We are not asking Canada to bet its future on Bitcoin. We are asking for three precise, accountable, reversible policy changes — each of which could be undone by a future Parliament if the evidence demanded it.
That the Bank of Canada allocate 1% of foreign reserve assets to Bitcoin, held in government self-custody, with holdings published on-chain and reviewed annually by a parliamentary committee with the power to reduce or increase the allocation.
That GST/HST be removed from Bitcoin-to-Canadian dollar conversions, and that long-term Bitcoin holdings be treated as a capital asset with equivalent tax treatment to real estate — removing the penalty on saving in a non-inflationary asset.
That the Bank of Canada Act be amended to formally acknowledge digital assets as a reserve asset class, and that the Bank be required to publish an annual Digital Asset Reserve Strategy reviewed and debated in Parliament — whether the conclusion is to hold, to abstain, or to divest.
Sound money is not a fringe idea.
It is the foundation of a free society.
Every stable, prosperous society in history was built on a monetary foundation that rewarded saving and punished debasement. We have drifted far from that foundation. The law governing Canada's reserves has not kept pace with the monetary reality of 2026. These three changes would begin to close that gap — transparently, accountably, and with Parliament in control at every step.
A government that controls your money controls your freedom. A money no government can control is the most sovereign thing a citizen can hold.
1% of foreign reserves in self-custodied Bitcoin, publicly auditable. GST/HST removed from Bitcoin conversions. The Bank of Canada Act updated to acknowledge digital assets as a reserve class, with annual parliamentary review.
Read our Sound Money policy →Sources: Coinbase State of Crypto Report 2025; Bitcoin for Corporations Annual Report 2026; Visa press release March 3 2026; Visa USDC Settlement launch December 16 2025; Bank of Canada consumer price index data 2020–2024; Bank of Canada Act (R.S.C., 1985, c. B-2).