Cryptocurrency being treated with any kind of official process right now is an unusual thing to watch. States around the world are well aware of the massive impact the movement could have, but on the other hand, are extremely wary given the naturally unregulated nature of it. As of right now, the Canadian government gives Bitcoin and other crypto legal status but has stopped short of calling it legal tender. With other cases popping up around the world, could we see a Canadian state crypto coin soon?
Cases Around The World
A few national governments have already started experimenting with the national crypto coin concept. In the UK, the government is currently looking into the possibility of a 'Digital Pound'. This would simply be the regular Pound Sterling currency but in online form. The idea is that it would be simpler and easier to use than traditional banknotes and be more flexible with officially supported payment platforms.
While this is only loosely a cryptocurrency, there is also the approach taken by El Salvador to accept an established coin as legal tender. With the backing of many crypto organizations and backers, Bitcoin became legal tender in the country a few years ago. The El Salvadorian government currently holds around half a billion dollars worth of Bitcoin and the currency has generally grown since.
The Main Advantages
Between both approaches, the main plus point of a digital currency is simply ease of use. With just a smartphone, service providers can avoid the cost of a full credit card reader. It means that traditionally cash-only services no longer require easily-lost hard money and can reduce the need for ATMs as a result.
With the Bitcoin approach, there's also access to a lot of modern online services that have already widely adopted the coin. For example, online casinos have seen a surge in the popularity of the crash game format which most commonly only uses Bitcoin or other crypto as an option. There are also places like the Metaverse, a whole digital world centred on crypto.
What It Would Take
Unlike in El Salvador where the president holds enough individual power to push it through, any discussion of digital legal tender in Canada has to go through an extensive process. Bear in mind that the UK with a similar system began this same process around three years ago and it won't be until at least next year before they start actual work on building it.
Even if the Canadian government were to immediately start looking into a digital Canadian dollar, a reasonable timeframe for putting it into practice would be close to a decade. Bear in mind that, aside from the legal aspect, there would also need to be major software development to incorporate it into daily life. It's possible, but a long way off.
The cases of both El Salvador and the UK will surely be watched carefully by other nations, so keep your eyes peeled on both and check back once those results are in!
