As the world becomes more digital, cryptocurrencies can help facilitate money handling, speed up the transfer of funds, and act as a powerful investment medium. Canadians are among the first in the world to gravitate toward the rising trend. Join me as we retrace the steps that led to a surge of crypto use in Canada and what it means for the future.
What is Cryptocurrency?
Cryptocurrency is a digital and encrypted medium of exchange. It runs on a public ledger called a blockchain that tracks all transactions between entities and holders. As a decentralized asset, there isn’t a single authority that maintains it.
Often referred to as digital coins or tokens, cryptocurrencies are secured by cryptography. This makes it nearly impossible to counterfeit or double-spend. They’re also fungible, meaning their value doesn’t change when bought, traded, or sold.
Perhaps the most popular cryptocurrency, Bitcoin, was invented in 2008 by an unknown individual known as Satoshi Nakamoto. It became a tradable currency the following year and remains the highest-valued coin to date. Many other tokens soon appeared to challenge Bitcoin. Current estimates place the count at just over 13,000, with new currencies hitting the market frequently.
Canadian Adoption of Crypto
Canada became one of the first to see the value of digital currencies more than ten years ago. The very first Bitcoin ATM opened in the heart of downtown Vancouver.
The country’s balanced approach to cryptocurrencies came with well-defined rules and clarity surrounding what these digital assets can and can’t do. Because of these forward-thinking initiatives, crypto continues to flourish and gain momentum from coast to coast.
Many businesses focusing on cryptocurrency or blockchain have flooded Canadian shores as a result, especially in recent years. The Canadian Securities Administrators (CSA) make it easy for these companies to register and offer tools to help them be successful.
One of the largest crypto exchange platforms, Coinbase, recently opened an office in Canada because of the country’s approach to crypto. Moving forward, The Great White North could become the poster child for crypto affairs. All these business dealings are trickling down to the populace as well. Today, an estimated four million Canadians own some form of crypto asset, and this number should only grow in the coming years.
Are Digital Coins Legal Tenders in Canada?
Despite Canada’s acceptance of cryptocurrency as a whole, it’s still not authorized for use as legal tender. At present, only the Canadian dollar reigns as the official currency.
While there’s no indication of this changing any time soon, the government is putting forth an effort to make digital coins more accessible in various places. The most notable shift is an increasing number of Bitcoin-friendly ATMs people can use to access certain currencies they own.
However, it’s completely up to the discretion of physical stores to accept these coins as forms of payment. There’s no requirement to accept them, just as businesses don’t have to take U.S. dollars either. Furthermore, cryptocurrency can’t be used for paying taxes or other government-related expenses.
What About Crypto Trading?
In the meantime, the country does allow the handling of digital tokens through other means. Canada fully allows the trading of these assets on approved digital exchanges. Therefore, nothing is stopping Canadians from buying, selling, or trading Bitcoin, Ethereum, or any of the available altcoins on the market.
Cryptocurrency remains in the spotlight as a speculative investment strategy, with the top coins seeing explosive growth from the time they first appeared on the scene. Investors playing their cards right in recent years have been able to take full advantage of these spikes to pocket some serious cash. As with any investment, though, cryptocurrencies come with their share of risks. Perhaps most notable is the high volatility that can cause sudden and extreme market swings.
Use in Online Casinos
Since Ontario legalized online gambling in recent years, we’ve seen huge growth in the Canadian gambling market. The rules on which sites are legal to use vary from province to province. That said, federal law does not prohibit citizens from playing on internationally licensed websites.
These casinos understand the impact digital coins can have and go out of their way to be crypto-friendly. Many allow the use of multiple tokens and offer incentives in the form of free spins or bonus cash if you sign up with a crypto account. After setting up a coin wallet to store your assets in, transfer your purchased, mined, or traded coins inside, and you’re ready to go.
For those who are less tech-savvy, crypto isn’t the only way to play online, and classic exchanges aren’t the only place to acquire coins. As an alternative, the money transfer app PayPal has fully embraced the crypto craze. The app allows the purchase, transfer, and sale of Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and the new PayPal stablecoin.
This allows you to purchase cryptocurrencies with peace of mind, while also being able to use PayPal for online casinos, a relatively new space in the market that PayPal has moved into along with the crypto market. Make sure to research beforehand, as review sites can be a great source of information, especially when there’s money on the line. Companies like Casino.org recommend the best, so you can be sure you’re making the most of your money (or your crypto), and only going to the top PayPal casinos. Regardless of where you research, just make sure that you take the time to do some.
The Current State of Crypto
Just a few years back, fears were circulating about the viability of cryptocurrencies for future investment. Bitcoin and Ethereum had fallen to historic lows, and people were selling digital assets at a record pace.
The forecast for 2024 and beyond looks promising, thanks to renewed interest in Bitcoin and similar assets through the launch of new crypto exchange-traded funds (ETFs) and a handful of other factors. Improved sentiment recently sent Bitcoin to new heights well above the $70,000 mark. In Canada alone, revenue in the cryptocurrency market could climb as high as USD 1.7 billion by the end of the year. That’s a significant boost from 2023, with projections for even more growth on the horizon.
Final Thoughts
Cryptocurrency may still be a speculative form of investment, but there’s little doubt it’s here to stay. As rules and regulations surrounding these currencies continue to solidify, we could see even more of an uptick in use. If we reach mainstream adoption, digital coins could further simplify doing business both in-person and on the Internet.
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