Why digital assets will be Canada’s economic equalizer
The ‘why’ behind the shift to a digital economy isn’t obvious to everyone, yet. Most people have a credit card, a debit card, and are convinced that what they have is good enough. But the reality is that the financial system wasn't designed for our benefit and is completely inaccessible for billions of people.
Three years ago, this really hit home for me when I tried to buy a custom painting of my daughter. I was on Instagram and discovered Tony Jagas, a prodigy artist now with 172,000 followers. The cost of an original work: $500 in Bitcoin.
This transaction wasn't just a deal; it was a lifeline. Turns out, he was just a teenager living in rural Nigeria. And why was Tony asking for Bitcoin? Simple — he couldn’t open a bank account. Ultimately, after months trying to help Tony set up an online store, his inability to participate in our current financial system was the blocker to launching his business.
This is a story of a flawed system. For billions, the financial world is a closed door. Over 1.7 billion people in the world are underbanked or unbanked.
It’s a problem millions of Canadians face too. A recent survey we completed found that 80% of Canadians feel that the financial system is not fair for everyone, and 86% agree it could use an update. The majority say it’s out of touch and 72% believe that it’s designed for the benefit of the wealthy. This is not a system that’s working for Canadians.
Coinbase recently took a major step forward to update the financial system – we became registered as a Restricted Dealer in Canada, making Coinbase the first international and the largest cryptocurrency exchange registered in the country.
Despite its critics, cryptocurrency will prove to be the greatest financial equalizer. Cryptocurrency treats everyone the same regardless of where you’re from or how much money you have. Fairness and equal access are foundational values for Canadians — one reason I’m convinced Canadians are early adopters and will continue to rapidly expand our use of digital assets.
There are understandable concerns — it’s too volatile and the space has unfortunately seen some bad actors in recent years. These are fair, but we’re early, and we’re mitigating these risks at a rapid pace.
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Yet the obvious challenge is that change is hard. The world is transitioning to an entirely new financial system and the bureaucratic nature of governments is too slow to embrace change.
We simply don’t have enough government employees dedicated to digital assets. We need to work closely with our government to prioritize technology in Canada or we will continue falling behind.
So we can’t let fear dictate progress. There’s too much on the line – the opportunity to create a world where your starting point doesn't dictate your finish line. Technologies like cryptocurrencies can reverse this trend. But there’s still work to build that trust and show that it can be a real difference maker for millions of people.
Much of that comes down to regulation. Regulation is the key to success for cryptocurrency in Canada. Over 70% of Canadians think that the regulation of cryptocurrency exchanges is important. In fact, 29% said they would be more willing to buy cryptocurrencies if there was more regulation in the industry.
Canadians should take pride that we have a very strong regulatory system for cryptocurrencies, and one of the most stringent regimes globally. Our industry, side-by-side with regulators, has collectively been working for years to build highly compliant, safe, secure exchanges for Canadians to participate in the digital economy.
Canada is home to some of the best technology companies in the world. Let’s not underestimate ourselves. Ethereum was built here, in Waterloo. With regulation in place, there is nothing holding us back. The future doesn't wait, and neither should we. Tony, and billions of others, are counting on us.
Lucas Matheson is the CEO of Coinbase Canada, overseeing Coinbase’s strategic direction and growth within the Canadian market since January 2023.
Economist
6 个月Canada has the potential to be a world leader in Bitcoin.
Head of Americas Industry Marketing Campaigns at Amazon Web Services (AWS)
6 个月Do you have a TFSA option within Coinbase to hold crypto?
Web3 Solution Architect/Engineer | Blockchain & DeFi Expert | CTO | Corporate Finance
6 个月Lucas, I appreciate your optimism about Coinbase ????'s regulatory strides I view this differently. ???? 's regulations, intended for protection, actually inhibit innovation. Many digital asset professionals have relocated or work remotely due to these policies. Unlike its approach in the U.S. (challenging securities regs), Coinbase ???? has not contested this in Canada, hampering innovation and aligning poorly with its advocacy for regulatory clarity elsewhere. Reality is in ????, our regulators have been captured by oligopolistic tradfi institutions interested solely in profit preservation. Evident in the treatment of tokens/stablecoins as securities and the imposition of a $30,000 crypto investment cap on Canada's consumers. Effective regulation should adapt to blockchain’s unique properties, not merely extend the status quo. Unfortunately, the current environment overlooks blockchains' potential to democratize financial services at the expense of consumers. By ceding to the regulator's, Coinbase ???? has missed an opportunity to advocate for a regulatory framework that optimizes for innovation and access. We need regulations that not only protect but also promote technological progress and lower costs for consumers. ??
Culture of Decentralization
6 个月TRUTH…appreciate the article. Ekosani
Lawyer | Host the Law of Code Podcast
6 个月Loved this line: “we can’t let fear dictate progress”