Canada’s economy, in particular in the technology sector, is in a period of growth that hasn’t been seen before. There is a lot of investment, particularly in innovative and futuristic technology. This development has turned the country into a tech hub. And so, when we look at one such progressive and innovative technology, blockchain, how is the country warming to something that could be revolutionary?
Recently, the House of Commons in Canada put forward a total of 16 recommendations for consideration by the Federal Government on blockchain. With the emphasis being that the country needs to act fast to seize upon the potential benefits of blockchain, some options are still faster in public sector processes at the moment. Nevertheless, we can expect more implementation in the future.
Key Takeaways
- Canada’s technology sector is experiencing unprecedented growth, particularly in blockchain investment.
- The House of Commons has proposed 16 recommendations for the Federal Government to quickly act on blockchain opportunities.
- Blockchain offers a decentralized, secure, and transparent system useful for various applications, including supply chain management.
- The government faces pressure to integrate blockchain into public sector processes, with potential benefits for international trade.
- Cryptocurrencies are not legal tender in Canada, but trading is permitted; citizens can use regulated exchanges to buy cryptocurrencies.
An introduction to blockchain
If you’re not sure of what blockchain is, before we look at how it’s being implemented in Canada, we will run through a brief overview. You may have heard by now of Bitcoin, which is by far the most popular form of cryptocurrency. It is a digital currency that can be used for various purposes. The platform that Bitcoin operates on and thanks its existence to is called blockchain.
It’s a database that is decentralized and unregulated, meaning that it guarantees security and accountability. And promotes transparency of both information and transactions. For example, Bitcoin relies on the blockchain process to authenticate and validate transactions.
Legal research
The country is also home to Gowling WLG, who regard themselves as “blockchain pioneers.” They are a law firm based in the country that specializes in legal practices wholly surrounding blockchain. They are also a foundation partner of the Blockchain Research Institute. Furthermore, in some of the areas, they have been researching the implications of implementing blockchain into the economy and infrastructure of Canada. This research is alongside firms such as The Bank of Canada, IBM, KPMG, and many more.
Blockchain is already being implemented
Some businesses, however, have already implemented blockchain into their operations. Retail supergiant Walmart Canada is one such example. They implemented blockchain into their supply chain to alleviate some long-running headaches they were suffering from. These issues came when it related to data discrepancies in invoices and payments. With a company as large as Walmart, which deals with 70 freight third parties in its Canadian operations alone, it sought to streamline its operations. And so it implemented blockchain as a way of inventing an automated process for overseeing and managing payments.
The government’s viewpoint
The pressure at the moment is indeed on the Federal Government to be more open and transparent about implementing blockchain into its public sector processes and services at scale. They should demonstrate the benefits of blockchain as a whole. Predictions are that Canada itself will be one of the biggest investors in blockchain technology. However, at the moment, this seems strictly limited to the private sector. Adoption is slow in comparison to other Western nations. The project at Walmart should demonstrate to the government and to other organizations the benefits of blockchain implementation and execution for the safety and security of organizational processes.
Simplifying trade
It would have a lot of benefits for the government when it comes to international trade. As we know, international trade is a big and very complex part of a government’s organizational processes. And indeed, when they do deal with another nation or a business entity within another nation, due to the logistics, it does take an element of trust between the two parties to conduct transactions.
Whereas if blockchain, for example, were implemented within this process, it would alleviate that reliance on trust. This is something they currently depend on heavily. Of course, this also relies on adoption from other countries and a wider adoption in general. So that an international framework can be agreed upon that uses blockchain for international and national trade.
Is crypto legal in Canada?
If you’re a resident of Canada, you may be disappointed to know that cryptocurrencies such as Bitcoin and Ether aren’t yet considered legal tender. However, the federal government in Canada does allow Canadian citizens to trade cryptocurrency. There are also Bitcoin ATM machines popping up around the country. You are expected, however, to link your national bank account with a regulated cryptocurrency exchange if you want to buy any cryptocurrency. Exchanges need to comply with federal, state, and local laws. To name a few that tick all the boxes, they include Coinsmart, Coinbase, and Binance.
Blockchain Summary
Hopefully, today you have been given a bit more insight into the current situation regarding blockchain in Canada. It is a country that is expected to invest heavily in revolutionary technology. For a country that is becoming known for its tech hub in Ontario, it’s got the population and the top talent there to provide some big leaps forward. These developments are within blockchain and its implementation within the country’s private and public operational processes.
