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Category Archive: Canada

Central Bank of Canada revealed the digital Cad coin

<img src="/images/cadcoin.jpg" alt="Cad coin" height="264" width="350" />

Is Cad Coin the future for Canada?

Yesterday the Central Bank of Canada announced its new project: Cad coin, or the digital version of the Canadian dollar based on the blockchain.
Cad coin is just a part of a greater study about the blockchain, called “Project Jasper”, according to The Financial Times
Bank of Canada is not the only bank involved: in fact, other important banks such as Bank of Montreal, CIBC, Royal Bank of Canada, Scotiabank and TD Bank are participating to this innovative project.
As you can read on a Forbes post, Bank of Canada is doing tests on a system that allows people to give their cash to the bank that will convert it into Cad coin.

Banks: in love with the Blockchain?

During the last months, we read about several bank projects related to the blockchain and digital currencies.
“The development of modern financial markets is inseparable from the development of financial technology”, said Bank of Russia’s deputy chairman Olga Skorobogatova
Are these news the proof that banks love blockchain applications or is it just fear?

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Satoshi

DH Corporation introduced blockchain solutions

During the recent months a lot of companies such as Dwolla, Earthport and PayCommerce announced the development of various solutions based on the blockchain.
Today is the turn of DH Corporation, also known as D+H, a Canadian leading end-to-end provider of retail, commercial and transaction banking solutions.
D+H introduced a proprietary blockchain solution within its Global PAYplus platform.
Global PAYplus already allows different methods of payment and D+H probably will announce soon the introduction of the digital currencies.
According to Moti Porath, D+H’s executive vice president of global pre-sales, the blockchain will help the company in several ways:

“We believe that 2016 will see banks transitioning from experimenting in the innovation labs to implementing solutions that drive value to their customers. At this time, we see the most relevance for blockchain capabilities in payments, so it made sense to move quickly to add capabilities to our global payments hub”, he said.
So it seems D+H really believes in the blockchain potential:
“[Banks] will be able to utilize a secure, closed loop, distributed ledger system to connect bank networks, move money in real-time, and improve access to liquidity.”
Going deep, D+H wants to create a node similar to a liquidity pool, with several liquidity pool accounts externally created.
This is Porath’s explanation:
“The liquidity pool node simulates accounts in a central bank and, when value is exchanged and the blocks are being updated, the central bank node is updated to reflect the exchange of value.”

D+H partners with Ripple

On October, 2015, D+H started a partnership with Ripple “to deliver innovative payment capabilities by integrating Global PAYplus, its global payment services hub, with Ripple’s distributed ledger technology, creating a foundation for further disruptive payments innovation”, stated dh.com.
Gene Neyer, head of product management, said:

“Distributed ledgers have the potential to radically transform the payment process. They remove the frictional costs and reduce the complexities of using multiple intermediaries; reduce or eliminate the reconciliation processes; and transform and enrich existing business processes by providing alternative sources of liquidity. This investment in distributed financial technology demonstrates D+H’s continued commitment to payments innovation. The payments landscape is rapidly evolving and D+H’s forward-looking solutions enable financial institutions and corporations around the globe to grow and compete.”

Download the whitepaper here

Also, D+H published a whitepaper in which they explain the five reasons why the company believes the banking industry should invest into the blockchain technology. You can download it here for free.

Open your free digital wallet here to store your cryptocurrencies in a safe place.

Amelia Tomasicchio

Canada is second most popular country for bitcoin investment

Canada is the second most popular destination for capital investment in bitcoin companies, a Montreal think-tank says.

(TorontoSun) Some $10.5 million of venture capital has been invested in bitcoin in
Canada, putting us behind the U.S. and just ahead of China, the
Montreal Economic Institute says.

Bitcoin, digital currency created in 2009, allows people to make transactions anonymously without going through a central bank.
But the currency’s association with money laundering and its lack of
government regulation puts its growth and development at risk in Canada,
the think-tank warned.
“In order for it to develop its potential and be adopted by a growing
number of users, clear rules are required, along with some kind of
governmental acceptance,” study author David Descoteaux said in a
statement.
Descoteaux said Canada should create legislation to facilitate interaction between Canadian banks and bitcoin companies.
Banks are wary of offering services to bitcoin companies for fear of running afoul of money laundering laws, he said.
For example, Cointrader, which launched the first bitcoin ATM in
Montreal, alleges the Bank of Montreal shut down its account and those
of other businesses that trade in bitcoin.
These kinds of stories send companies — which may be on the forefront
of currency innovation — elsewhere to set up shop, the think-tank said.
Germany, for example, has bitcoin legislation and tax policy.
“These clear rules, as well as a tax treatment that allows bitcoin to
be used as a currency, explain why the digital currency is popular in
Germany and why this country was one of the first bitcoin hubs,”
Descoteaux said.
“Canada has so far been quite welcoming to bitcoin, and in clarifying
its own regulatory framework, it should ensure that it remains so.”

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Satoshi

Canada and Israel take a different approach to Bitcoin

(SiliconAngle) Bitcoin gained a lot of momentum in 2013, as many people
experimented with it for the first time. It’s not surprising that 2014
also started with a bang for Bitcoin, when its value hit close
to $1,000. Some online shops have started accepting the cryptocurrency
as a form of payment, online sites use it so people can send donations,
and the Chicago Sun-Times has begun experimenting with it to raise funds for the Taproot Foundation.

Though the digital currency is clearly gaining traction,
many governments aren’t too keen about accepting it as a legal tender
just yet. Both India and China
have both warned against Bitcoin in recent weeks, resulting in some
significant fluctuation of its value. But even though there’s been some
strong opposition in these countries, it seems that most others are open
to the possibility of Bitcoin becoming a legal currency in the future.
Two countries are currently keeping an eye on Bitcoin,
monitoring what others are doing about it before coming up with a plat
as to how to approach the cryptocurrency.
Canada’s stand on Bitcoin
In a statement this weekend, Canada’s finance department
clarified that only Canadian bank notes and coins are considered as
legal tender. It doesn’t consider Bitcoin as a legal tender, but that
doesn’t mean that the Canadian government doesn’t see its potential,
reports The Verge.
For now, Canadians can use Bitcoin to pay for online goods,
but not for paying taxes, and businesses will not be required to accept
it as a form of payment.
“Smaller, stand-alone payment systems for which there are
many substitutes — like Bitcoin — should generally require much less
intensive oversight and regulation because they pose much less risk to
the Canadian financial system as a whole,” said Bank of Canada
spokesperson Alexandre Deslongchamps.
Israel’s Wait and See approach
Israel is taking the same stand as Canada, waiting to see
how it all unfolds, but this policy may change in the near future.
 Currently, some financial institutions in Israel are already engaged in
Bitcoin transactions, but regulators haven’t said a thing about it yet,
reports CoinDesk.
The problem with this scenario is that it could attract
that wrong kind of attention. Bitcoin could be used to dodge tax
payments and can even be useful for money laundering, but regulators
feel like they don’t currently need to take a stand regarding any form
of digital currency, since they are still trying to figure out what the
rest of the world will do with it.
“People who want to get their hands on bitcoin will always
succeed, and it would be a pity if it were to occur in the shadows and
not under the supervision of the banking system,” Attorney Shiri Shaham,
who specializes in banking law, stated.

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Satoshi
bitcoin users

Canada has decided to reveal some of its plans for virtual currencies

(BitcoinExaminer) Canada has decided to reveal some of its plans for the future of Bitcoin and other virtual currencies: the country’s Revenue Agency (CRA) recently released a statement regarding the taxation of cryptocurrency, which had been promised in May.
The document, entitled “What you should know about Digital Currency”,provides guidance to tax advisors working with Bitcoin companies in the country, reinforcing the CRA’s former opinions on the subject.
Basically, the tax rules apply when Bitcoin is used to pay for goods and services, exactly like the rules for barter transactions apply. The fact sheet also includes links to the CRA’s rules on Barter Transactions, equally pointing out that “digital currency can also be bought or sold like a commodity”, so “any resulting gains or losses could be taxable income or capital for the taxpayer”. However, as Coindesk highlights, the guidelines don’t address the possible taxation of Bitcoin mining.
Finally, the document encourages the Bitcoin users and entrepreneurs to follow the law: “not reporting income from domestic or foreign sources is illegal. Canadians should know that the Canada Revenue Agency is very active in pursuing cases of non-compliance, in order to ensure that the tax system remains fair for everyone”.

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Satoshi