In the race to dominate the flourishing blockchain industry, countries worldwide scramble to gain a leading edge. Interestingly, Canada seems to be stepping up its efforts to be a frontrunner in this contemporary technology race. A recent report by the Canadian House of Commons committee recommends that Canada should embrace blockchain as a burgeoning industry and make all logistic efforts towards strategizing its growth.
The report teases out the potential applications of blockchain, encompassing cryptocurrency, supply chain, public sector applications, and non-cryptocurrency financial innovations. It reiterates the country’s substantial contribution to blockchain innovation. With large corporations in this North American country already harnessing blockchain’s potential, the report suggests that the government should formulate a national strategy to expedite this growth.
Concurrent with the maturation of the blockchain industry in Canada, the report highlighted a growing need for regulatory framework; especially with regard to stablecoins. Notably, the report identifies that even expert witnesses couldn’t agree on if stablecoins can be classified as securities, mirroring global uncertainty around this budding cryptocurrency variant.
Yet, the optimism towards blockchain adoption wasn’t entirely uncritical. Critics have expressed concerns about the recent collapse of the QuadrigaCX trading platform giving impetus to regulatory action, hinting at the risks that also come with blockchain. While the report underscores how Canadian cryptocurrency trading platforms have sufficiently evolved to protect consumers from risks generally seen on foreign platforms, it also emphasizes the need to be prepared for a future replete with “bad actors.”
The report’s argument to acknowledge the substantial role of blockchain in Canada emerges as a double-edged sword where, on one side, it proposes 15 recommendations aiming at strategic planning and regulatory clarifications; whereas, on the other, it warns of potential risks and disruptions that can accompany the growth of this cutting-edge technology.
As countries jostle to adopt blockchain technology, the question remains: Can Canada navigate successfully between the immense potential benefits of blockchain technology and its incumbent risks and uncertainties? In this regard, the report serves as an insightful mirror reflecting the two sides of the same coin, that is, the adoption of disruptive blockchain technology in Canada.
Source: Cointelegraph
