Experts’ take on Canada being the leading blockchain and cryptocurrency nation
In the blockchain and cryptocurrency realms, Canada stands in the third rank after the US and the UK. Despite the late adoption of blockchain technology and ethereum blockchain technology, the crypto and blockchain experts firmly reckon that Canada has all the favorable resources for prospering as a blockchain and cryptocurrency nation.
Canada has low energy costs, the favorable regulatory regime and high internet speed which are perfect for a blockchain innovation hub. Therefore, the nation has embraced various useful applications of blockchain technology in the spheres of finance, legal affairs, education, health, government, space, energy, initial coin offerings, national and multinational cryptocurrencies.
Hub for Blockchain Innovation
Canada is home for the inventor of the Ethereum blockchain, Vitalik Buterin and thus, the hub for blockchain innovation. Ethereum blockchain is a second-generation public software platform that creates a protocol for building trusted decentralized networks.
It has extended the functionality of blockchain design invented by Satoshi Nakamoto with the help of a general scripting language. Furthermore, it has strengthened the concept of decentralized peer-to-peer (P2P) Bitcoin payment by incorporating the idea of smart contracts.
The nation will always be remembered as and when the utilities of the first public ethereum backed network are talked about. The platform has enabled the developers to create operations with permanent and trusted records of the transaction by deploying decentralized applications.
The first ethereum backed network was made life for the public in 2015 and since then it has been supporting ether, the second most valued cryptocurrency with a current market capitalization of $63 Billion. The platform has been adopted worldwide now.
The chief software architect of ethereum foundation, Nick Johnson says, “ethereum platform will be building a bridge between the readability of cryptographic addresses by humans and machines.”
The Enterprise Ethereum Alliance is an essential member of the Blockchain Research Institute (BRI) based in Toronto. The executive director of the Enterprise Ethereum Alliance (EEA), Ron Resnick says, “EEA will connect the ethereum blockchain and enterprise industry which is currently evolving.”
BRI has currently undertaken 70 research projects that are going to pave paths for blockchain technology to be utilized in various industries. The organization has also partnered with the Information and Communications Technology Council of Canada to build a blockchain ecosystem that is widespread in the entire nation. Furthermore, the Bank of Canada has come up with the nation’s own cryptocurrency.
Centre for Cryptocurrency Mining
Besides blockchain innovation, Canada excels in cryptocurrency mining. Quebec, a region in Canada has favorable conditions like an energy surplus which is almost equivalent to 100 Terawatt hours for 10 years, cold temperature, low-cost electricity, and high-speed internet.
These factors have attracted crypto miners from different regions to open data centers in Canada. There are a lot of them in Montreal.
Friendly Crypto Regulation
Canada deals with crypto regulations gently as the regulatory bodies of the country feel that excessive regulations might put things haywire. Besides being lenient, Canada Government offers aid and incentives to the crypto startups. There are several instances of Canadian Government exempting ICOs of the regulations and securities laws.
British Columbia Securities Commission’s decision to approve the first registered cryptocurrency investment fund of Canada encouraged the investment, venture capital firms and pension funds to invest in cryptocurrencies.
Despite the incredible volatility, the first blockchain exchange-traded fund of Canada started trading on the Toronto Stock Exchange.
Taxation on Cryptocurrencies with Incentives
The Canada Revenue Agency (CRA) has been imposing taxes on cryptocurrencies since 2013. Therefore, no one can escape taxes when transacting in cryptos or holding cryptos.
If a Canadian’s virtual assets are deposited in a different country, he must adhere to the foreign guidelines to pay the taxes.
The country is highly bullish about technological innovation, thus, both the federal and provincial governments provide tax incentives to the Research and Development sector.
Canada has moved a step further in offering absolute transparency to its taxpayers as they can track where their tax amount is being utilized and be assured that their hard earned money is not misused in any way.
The reasons mentioned above have influenced a Canadian couple pours their life savings into mining Bitcoins.
Dan Ingram and his wife Amanda Ryland see immense potential in the world of cryptocurrencies. Therefore, instead of investing money in buying these digital currencies, they chose to invest in space, electricity, and machines.
Sean Clarke who is the head of the first Canadian Bitcoin mutual investment fund named First Block Capital believes that Canada is more advanced regarding its crypto policy than the other countries including its neighbor, the US. According to him, the Canadian Government is highly interested in blockchain and its applications.
Vishal Gupta, the founder, and CEO at BINEX.TRADE mentioned in one of his blogs that the memory of the Bitcoin Conference in Miami held in 2014 is still fresh when Joseph Lubin told him about a new project, named Ethereum, that he and a group of like-minded Canadians had begun working on just a few months earlier. When he caught up with him, he didn’t hold back on the scope of his vision: “We will replace insurance companies. We will replace Wall Street,” he told him.
His testimonial and several other experts’ opinion indeed portray that Canada deserves to be the leading blockchain and cryptocurrency nation.
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