Canada's Wakeup From an Economic Coma: Why Kevin O'Leary Is Optimistic

Summary

Markets Daily Crypto Roundup: Canada's Wakeup From an Economic Coma: Why Kevin O'Leary Is Optimistic

Release Date: May 19, 2025
Host/Author: CoinDesk
Guest: Kevin O'Leary, Chairman of O'Leary Ventures and Co-host of Shark Tank (“Mr. Wonderful”)

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1. Introduction

In this special edition of Markets Daily Crypto Roundup, hosted by CoinDesk, the spotlight is on Canada’s evolving economic landscape and its implications for the cryptocurrency sector. The episode features a candid discussion with Kevin O'Leary, widely recognized for his role on Shark Tank, who shares his insights on Canada's recent economic challenges, leadership changes, and the future of crypto regulations in the country.

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2. Canada's Economic Situation

Kevin O'Leary opens the conversation by painting a stark picture of Canada's economic downturn over the past decade. He emphasizes the severe decline in various economic indicators under former Prime Minister Justin Trudeau’s administration.

“It's been a very tough time. For the last 10 years. It's collapse of the Canadian economy, collapse of the Canadian dollar, collapse of Canadian investment, collapse of Canadian GDP.”
[01:11]

O'Leary attributes the economic struggles directly to Trudeau's leadership, describing it as unprecedented in Canada’s history.

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3. Leadership Change: From Justin Trudeau to Mark Carney

The discussion transitions to the recent leadership shift, with Mark Carney assuming the role of Prime Minister. O'Leary expresses a more favorable view of Carney compared to Trudeau.

“I think he has. Well, first of all, he's not an idiot, not like Trudeau.”
[01:51]

O'Leary praises Carney’s executional skills and his potential to reverse the country’s economic decline. However, he cautions that Carney faces significant challenges due to the lack of a majority government, necessitating collaboration with the Conservatives to implement effective policies.

“He has a tough job because he doesn't have a majority. And so he's got to work with the Conservatives to find a path.”
[01:49]

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4. Crypto Policy in Canada

A pivotal segment of the conversation revolves around Canada's stance on cryptocurrency regulation under Mark Carney’s leadership. O'Leary remains optimistic about a pro-crypto trajectory, influenced by both U.S. regulatory developments and the actions of Canadian regulators like the Ontario Securities Commission (OSC).

“I'm very optimistic that he will follow the leadership of the regulator in the U.S. which has happened, you know, really, with the OSC... they're watching what the FCC is doing.”
[02:53]

O'Leary anticipates that Carney, with his background in financial services, will recognize the productivity potential of crypto across various economic sectors. He underscores the importance of giving Carney a broad mandate to implement crypto-friendly policies.

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5. Interactions with Donald Trump and US-Canada Relations

The dialogue shifts to the intricate relationship between Canada’s leadership and former U.S. President Donald Trump. O'Leary provides a behind-the-scenes perspective on the strained interactions between Trudeau and Trump, highlighting how this dynamic influenced the current political landscape.

“Trump and Trudeau had a toxic relationship because during Trump's first term, the first mandate he had, Trudeau kept throwing barbs at him...”
[03:44]

He notes that Mark Carney has managed to navigate these tensions more effectively, leveraging Trump's antagonistic stance to gain political traction in Canada. Despite Carney's efforts, O'Leary remains skeptical about the longevity of his leadership.

“He doesn't do it. 12 to 18 months, he'll be gone.”
[05:12]

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6. Tariffs and Trade Policies

O'Leary delves into the complexities of tariff policies, particularly in the context of U.S.-China relations and their spillover effects on Canada. He advocates for substantial tariffs on Chinese goods as a strategic move to bring China to the negotiating table.

“Well, I call for 40% on China as effective embargo.”
[06:25]

He further explains the economic implications of reciprocal tariffs, comparing them to a consumption tax, and discusses how these measures impact Canada’s standing in global trade negotiations.

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7. Bitcoin as a Strategic Reserve

The conversation shifts to the potential of Bitcoin serving as a strategic reserve for nations. O'Leary is a proponent of this idea, likening Bitcoin’s role to that of gold a century ago.

“I think they should. I think every country is going to use that in the same way that gold was used 100 years ago.”
[10:21]

He emphasizes the necessity for clear policies and legal frameworks to establish Bitcoin’s status as a security or commodity, highlighting the current regulatory gaps that must be addressed.

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8. Stablecoin Legislation and Future Crypto Developments

In addressing the regulatory environment, O'Leary discusses the prospects of stablecoin legislation in the United States and its potential ripple effects on Canada. Despite recent setbacks, he remains confident in the legislative momentum towards recognizing and integrating stablecoins within the financial system.

“I'm very close to that bill. And it, they're taking another shot at it.”
[11:02]

O'Leary underscores the significance of digital payment systems based on the U.S. dollar and forecasts that crypto will become the 12th sector of the economy within five years, driven by advancements in digital payments and cross-border transactions.

“... crypto will be the 12th sector of the economy within five years because it's so productive to the rest of the sectors just in digital payments.”
[11:02]

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9. Conclusion

As the episode wraps up, Kevin O'Leary reiterates his optimism for Canada's economic recovery and the pivotal role that cryptocurrency can play in this transformation. He underscores the importance of regulatory advancements and strategic economic policies in harnessing crypto’s full potential.

“Crypto will be the 12th sector of the economy within five years... that's brilliant.”
[11:02]

The host acknowledges O'Leary’s insights and hints at his upcoming appearance at Consensus 2025, signaling continued engagement in these critical discussions.

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Note: This summary omits advertisements and non-content segments, focusing solely on the substantive discussion between the host and Kevin O'Leary.

Transcript

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[Host]

Welcome to this special edition. Markets daily from consensus 2025. Our next guest joins us at the desk now. Kevin o' Leary, chairman of o' Leary Ventures and co host of Shark Tank, also known as Mr. Wonderful. Welcome back to the show.

[Kevin O'Leary]

Great to be here. Thank you.

[Host]

Yeah, great to be here. So we are at Consensus in Toronto. This is the first time we've run consensus north of the border. Talk to us about what's going on in Canada when it comes to crypto.

[Kevin O'Leary]

Well, I mean, it's kind of interesting that we would have it here because it's a beautiful convention hall, obviously, but Canada is going through a remarkable transition right now. It's been a very tough time. For the last 10 years. It's collapse of the Canadian economy, collapse of the Canadian dollar, collapse of Canadian investment, collapse of Canadian gdp. There's never been a time like this. And unfortunately, it's because of Justin Trudeau. He was an idiot. I was just. Sorry. But that's true. So now we have a new leader and we have great potential. And I think.

[Interviewer]

What are your thoughts on Mark Carney?

[Kevin O'Leary]

I think he has. Well, first of all, he's not an idiot, not like Trudeau. So this guy has a proven executional skill. You may not like his policies on green initiatives and some don't. I'm always willing to give a new leader 100% mandate, give him a chance. But he's got a tough job because he doesn't have a majority. And so he's got to work with the Conservatives to find a path. After all, Canada is the richest country on earth. And when measured, proven resources per capita, we're the richest country on earth run by morons. Here's a chance where you could get Carney to reverse that course. So he has his chance. But because if you look at the history of minority governments in the parliamentary system, whether it be in Britain or in Canada, it's not good. I mean, if you don't turn the ship around in 12 to 18 months, you're gone.

[Interviewer]

What are your thoughts on his. His stance on crypto policy? He hasn't really elaborated on that. And so when we talk about crypto policy in Canada, where do you see that headed under Mark Carney?

[Kevin O'Leary]

I'm very optimistic that he will follow the leadership of the regulator in the U.S. which has happened, you know, really, with the OSC, the regulator here, the prime regulator in Ontario. They're watching what the FCC is doing. Paul Atkins just took over the SEC just weeks ago. He's very pro crypto. He's made that known. So I anticipate a very positive tone in Canada as well. And I think Carney, coming out of financial services, understands the potential of what crypto can be in providing, you know, productivity in all sectors of the Canadian economy. So I would say he'll be pro crypto. I mean, we don't know yet, but I'm going to give him, cut him a broad swath to let him prove himself, because he can.

[Interviewer]

What do you think of his interactions with Trump? I mean, it seemed that Trump liked him and they had a rapport. And what do you make of that?

[Kevin O'Leary]

Well, it's a reverse to what the reason this whole. The reason he's Prime Minister is a remarkable situation. Think about this. Trump and Trudeau had a toxic relationship because during Trump's first term, the first mandate he had, Trudeau kept throwing barbs at him and darts at him all around the world, insulting him, and in Egypt and India and the UK And Trump didn't like that. And I guess Trudeau never thought he'd be back. And then when Trump got back, the first thing he did was reverse that same thing, and he started doing the whole, Trudeau's a governor, we're going to buy Canada, just having fun. But I also learned that he hates Freeland even more. And so he just hated both of those people. And that's what caused this incredible antagonistic view of Canada, which let Carney go to Canadian people. And he was so brilliant at this, I have to hand it to him. He said, don't look at the track record of my party. It doesn't matter that they impoverish 25% of the Canadian population. Don't worry that we've wiped out the currency. Don't worry that our GDP is zero. That doesn't matter. What matters is this evil guy south of the border named Trump. I will save you. And it worked. It was brilliant. Now the problem is he's got to deliver. He's got to turn Canada around. And we all. You've Got to. You want to support the leader regardless of who it is, you've got to.

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[Kevin O'Leary]

He doesn't do it. 12 to 18 months, he'll be gone.

[Host]

Were you surprised that Carney was able to kind of flip the country very quickly when it comes to the vote? Most of Canada was leaning Conservative.

[Kevin O'Leary]

Well, I think he did a brilliant job in getting people to because the Liberals were losing by 30% because of their track record was. So it was the worst government in Canadian history by the numbers. You don't have to get emotional about it. They wiped the Canadian economy out. They just did. And they just had the wrong policies at the wrong time. But it was remarkable to see that just shows you he's a pretty good, he has good executional skills. And so we want him to do that within the country now. And let's, let's see it happen.

[Interviewer]

What do you think will be the right approach when approaching tariffs with Trump? Because we see China has had a hard stance. You were saying throw 400% tariffs against China, but now we've seen them roll that back quite a bit this 90 day pause. And on other cases with Panama, with other countries, if they give in a little, I mean, they're going to get, they're going to be basically slapped by Trump. And so what should the Canadian approach be?

[Kevin O'Leary]

Well, I call for 40% on China as effective embargo. I didn't want any trade with them to get them to the table. They came to the table in Geneva and they started the narrative now, which I think is great. The way to look at this tariff situation right now, let's look at the China package for the next 90 days. 10% tariffs of American goods going into China, 30% Chinese goods coming in the US of which it's 10, reciprocal 10 plus a 20% fentanyl penalty, which could go away tomorrow if the Chinese figure out how to stop sending the components of fentanyl to Mexico and the United States. And so that's a 10 on 10. The way to look at it from the financial perspective is most countries on earth have a consumption tax called a VAT tax. You're in Italy, you buy a handbag, you go to the airport, you get your VAT tax back. France, England, Canada, same thing. The US could never sell to Congress, a consumption tax ever. However, if you put a 10% tariff on reciprocal with every other country, you've effectively introduced a consumption tax. That's what Trump is doing. And most economies can function very well between 7 and 14% consumption tax. So if they end up in the middle at 10% reciprocal tax with every country, including Canada, that's going to work. And I think that's where we're going. And unfortunately, right now, Canada is only two and a half percent of the world's gdp. So we're way at the bottom of the list of what Trump cares about, because he's trying to do 60 agreements.

[Interviewer]

We're a top trading partner for the United States.

[Kevin O'Leary]

No, I know, but I mean, it's. You got to get. You got to get the EU done, India, done, Japan done, And then Canada, maybe in the meantime, he's just parked us with 25% because he hated Trudeau so much in Freeland. And I can't believe she's still in government. I mean, I'm shocked.

[Host]

She's a Transport minister now, right?

[Kevin O'Leary]

The best thing to do with her, and I would advocate this as a Canadian taxpayer, is pay her, but don't let her come to work. Let her stay at home and just do whatever she does. She's horrible. She's the worst manager I've ever seen.

[Host]

Why do you think he kept her in government?

[Kevin O'Leary]

I have no idea. If she was working for one of my companies, I would have fired her a long time ago. Look at what she did when she was Finance Minister. She is the most incompetent elected official in Canadian history after Trudeau, who was an idiot. So you've got. I can't say enough. I'm just telling the truth. I'm being honest. She was absolutely. Had no executional skills.

[Interviewer]

Do you still think Canada should be the 51st state of the United States?

[Kevin O'Leary]

No, no, I don't think that at all. I think we should have an economic union because we would be the largest economy on Earth if we combine to do the same thing the Europeans did. A common currency, a common passport option. We don't give up sovereignty. We form an economic union. We protect the northern border against Russia and China. These. That's the signal that Trump has given. But he detested. I mean, I was there. I watched those two interact. It was brutal. It was.

[Interviewer]

You're. And you're familiar with Trump, correct?

[Kevin O'Leary]

Yeah, yeah. No, I've known the guy for 17 years. We came up together on television. He was on Celebrity Apprentice and I did Shark Tank. We started the same month in New York. That was 17 years ago. Look, he's a. He is what he is. But I always tell people, look, don't listen to the noise. Listen to the signal. Trump is bombastic. He says outrageous things. He tweets out crazy stuff every morning. But he has a signal. And the signal he has is let's combine the economies, not buy Canada. No one's going to sell Canada. No Canadians want that. But if you ask a Canadian, would they like to take their Trudeau peso and convert it into American dollars. 11. 11 out of 10 Canadians would do that. No. I mean the Canadian dollar is wiped out.

[Interviewer]

It's a, it's almost Canada have a strategic bitcoin reserve.

[Kevin O'Leary]

I think they should. I think every country is going to use that in the same way that gold was used 100 years ago. I mean, I'm a believer in that. But you need policy, you need, you need law for that. We don't have that. We don't even designate bitcoin as a security or commodity yet. We got, we're a long way from the that happening. A long way.

[Host]

Kevin, we got to let you go. But I want to come back to one thing you said. You said that you think the Canadian regulator will watch the US regulator and what they're doing when it comes to crypto regulation. The last time you and I spoke, we spoke about stablecoin legislation in the United States. The last Senate vote failed to pass. Want to get your thoughts on that. What do you think's going to happen? Are you still positive on getting stablecoin legislation by.

[Kevin O'Leary]

I'm very close to that bill. And it, they're taking another shot at it. There was nine Democrats that voted against in the last minute. That was purely political. Most states and the federal government see the merit of a digital payment system based on the US Dollar because most commodities on Earth price discoveries based on the US dollar, including Canadian commodities like oil, like gas, like precious metals and precious rare earths. They're all designated and price discovered in US dollars. And so I think that will happen. It will be an important legislative move to signal that we're going to be dealing with crypto. And I believe, and I'm still an optimist and I've said this multiple times, that crypto will be the 12th sector of the economy within five years because it's so productive to the rest of the sectors just in digital payments. Just think about what happened when Robinhood bought WonderFi. You can now transfer currency right across the border without using a bank. That's a trillion dollar industry with a, it's ancient 60 year old technology and really high fees. You now if you have a wallet in Canada, you have a wallet in the US you just do a transaction of a stablecoin I mean, that's brilliant.

[Host]

All right, Kevin, we got to let you go. Thanks for joining.

[Kevin O'Leary]

Thank you very much.

[Host]

Here at the desk, Kevin O' Leary will be speaking on stage at Consensus 2025 later on today. That was chairman of O' Leary Ventures, Kevin O' Leary. We are going to take a quick break. We'll be right back.

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