With the increase and popularity of Bitcoin, a lot of people have begun to invest in this digital currency. Research has shown that the Bitcoin and other digital currencies will go a long way and are probably here to stay. Bitcoin price in Canada currently is over $7,000 and seems to be increasing every day.
The history of Bitcoin in Canada can be looked at in comparison with the former currencies of Canada. Canada has not approved Bitcoins or other cryptocurrencies as a legal tender instrument in the country. Recently the Bank of Canada produced a report comparing the period when they had both governments issued notes (dominion notes) and private bank notes. The characteristics of these two currencies were seen to show similarities with the way cryptocurrencies operate today.
According to the Bank’s report, it was believed that this comparison will help the country establish the possible future outcome of digital currencies.
Canadian Currency in 1866
Canada operated its private bank notes and dominion notes for over 70 years before it was replaced by the Canadian Dollar in the 1930s. these two currencies were operating in dollars and it was a popular means of payment in Canada. They operated similarly like digital currencies because they were a method of electronic payment which did not require a deposit or credit account in any bank. The major difference was that the currency was in print, unlike digital currencies that operate in the computer.
Observations made by the Bank of Canada on digital currencies
According to the Bank of Canada’s report, when looking back at their history they believe that digital currency will be counterfeited. Their private bank notes and Dominion notes in the past were counterfeited by criminals.
Digital currencies like Bitcoin are decentralized and have the tendency to become scarce. The Bank of Canada claims that the central bank can issue local currency to any amount to maintain a steady flow of income which is not the case with Bitcoins. Reason being that Bitcoin’s algorithm cannot be altered.
Also, the Canadian bank is of the firm belief that the digital currency of today will not survive because of the risks attached to it and the fact that it is unsafe. Bitcoins are not redeemable when the transaction goes wrong. When peoples tokens disappear or the Bitcoin loses value, the owner runs at an unexpected loss.
Until the digital currencies are accepted as legal tender, they will not portray qualities of a uniform currency. The exchange rates of digital currency vary from issuer to issuer because there is no centralized body. It is believed that government intervention to make digital currency uniform might succeed but it would not be necessary since there is already one unified functioning currency in the country.
The Bank of Canada argues, however since Bitcoin is already widely accepted, it can be possible to consider it as an alternative digital currency.
History of Bitcoins in Canada
Canada in history has a record of being one of the top adopters of digital currencies. There are many places in Canada that give people the opportunity of acquiring Bitcoins. In Canada there are over 140 Bitcoin ATMs and 6,000 Flexipin retailers. These ATMs give user’s the opportunity to exchange Bitcoin to Canadian Dollars.
In 2012, Royal Canadian Mint came up with MintChip which was a digital currency. It didn’t survive because of the demands it brought as regards to expenses to be incurred by merchant shops. People didn’t accept this digital currency because the hardware was expensive. By 2016 the MintChip was sold to a private company that in turn transformed it to a smartphone app.
It was recorded in 2013 that a coffee house in Vancouver, Waves displayed the worlds first Bitcoin ATM. The Canadian government met with the Bitcoin representative the next year after this officially as well as Canadian Commitee on Banking, Trade, and Commerce.
Many people are still yet to adopt Bitcoin and other digital currencies and there is every likely possibility for a time where both digital currencies and the national currencies will coexist.
Canada is noted for being a Bitcoin-friendly country. With the increase in the Bitcoin value in Canada, many institutions that have adopted the Bitcoin as their mode of payment for goods and services. For instance, their medical institutions that accept Bitcoin payment to provide consultation services for people online. It is believed that the home of Bitcoin in Canada is in Toronto and Vancouver. These two places have recorded a high rate of digital currency operations in the country.
It was reported in 2014, that workers in Toronto signed up that they preferred their salaries being paid in Bitcoins than the local currency.
There have been attempts by the Bank of Canada to adopt the blockchain technology in their banking system but they had to put a hold on this around March 2017 in order to figure out more solutions to make the process perfect. Bitcoin value in Canada has gone a long way in the country’s economy and it will likely be adopted in the nearest future.
The current price of Bitcoin which is 1 Bitcoin to cdn equals over $7,000 which has proven to be a very profitable investment for people. More and more people are continuing to adopt the Bitcoin technology in their lifestyle in Canada.
Online Exchange in Canada
Aside from the retailers of Bitcoins and ATM’s used for exchanges, people in Canada also buy Bitcoins online through exchange platforms. CoinSquare is popularly known in Canada as the second largest bitcoin exchanger. To access the current Bitcoin value, people use Bitcoin calculator to know how much they would get in exchange for their Canadian Dollars. On CoinSquare, subscribers with accounts on their platform can exchange their btc to cdn.
The world of digital currency is here to stay and even with the risk associated these currencies, people are willing to invest a lot of their capital in digital currencies in Canada.