Bank of Canada Ponders Bitcoin Benefits Amidst Mounting Popularity

Friday, 14/11/2014 | 07:27 GMT by Jeff Patterson
  • Bitcoin continues to catch fire in Canada, with the Bank of Canada (BoC) mulling the potential benefits of utilizing digital currencies, namely Bitcoin, despite its obvious inherent risks.
Bank of Canada Ponders Bitcoin Benefits Amidst Mounting Popularity
Golden Bitcoin digital currency background with DOF

Bitcoin continues to catch fire in Canada, with the Bank of Canada (BoC) mulling the potential benefits of utilizing digital currencies, namely Bitcoin, despite its obvious inherent risks.

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.

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.

Golden Bitcoin digital currency background with DOF

Bitcoin continues to catch fire in Canada, with the Bank of Canada (BoC) mulling the potential benefits of utilizing digital currencies, namely Bitcoin, despite its obvious inherent risks.

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.

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.

About the Author: Jeff Patterson
Jeff Patterson
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About the Author: Jeff Patterson
Head of Commercial Content
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