Canada has had a unique relationship with cryptocurrencies, notably Bitcoin. According to Canadian tax laws, salaries received in Bitcoin are viewed as barter income and are taxed based on the equivalent in Canadian dollars, which has led to a trend of employees receiving their salaries in Bitcoin.
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As a result of the growing popularity of Bitcoin domestically, Senior Deputy Governor Carolyn Wilkins reiterated the necessity of awareness in dealing with currency buoyed by such loose regulation and consumer protections.
Miss Wilkins underscored the lack of oversight from the BoC as a result of the lucid nature of cryptocurrency as a form of e-payments. However, she felt that the heightened popularity of Bitcoin has yet to pose a systematic risk to Canada’s financial stability.
As a result, the BoC may ultimately take the preemptive step and revamp or modernize its oversight of payment methods – in the interim, the BoC is watching patiently and avoiding any rash decisions.