Frozen Assets: Examining Canada's Use of Emergencies Act on Two-Year Anniversary

Today (February 14) marks the two- year anniversary of Prime Minister Justin Trudeau's decision to invoke the Emergencies Act for the first time in Canadian history. The decision was made in order to shut down the Freedom Convoy--a protest organized against government overreach during the COVID-19 pandemic. At the time, my Cato colleagues Norbert Michel, Walter Olson, and I spoke out against the decision because it marked both an attack on freedom in the current financial system and a cautionary tale of what might happen with central bank digital currency (CBDC) in the future. Yet, looking back, there are even more reasons to oppose Prime Minister Trudeau's use of the Emergencies Act. Although it was largely the Emergencies Act that drew international criticism, the Canadian government tightened its hold on the financial system long before Prime Minister Trudeau's official announcement. In fact, the experience highlights all too well the extent to which governments can readily pressure and control the financial system with existing tools.