Bitcoin’s meteoric rise to over $94,000 following Donald Trump’s U.S. presidential victory signals a seismic shift in the global cryptocurrency landscape. While the United States prepares for what could be a regulatory and technological leap forward, Canada faces mounting criticism for lagging behind in embracing blockchain and crypto innovations.
Andreas Park, professor of finance at the University of Toronto Mississauga and academic director of the Rotman FinHub, argues that Canada’s position as a former leader in fintech is slipping. “Ethereum originated in Waterloo-Toronto,” Park notes, emphasizing the country’s early contributions to blockchain technology. “Yet, we have fallen behind owing to a government stance that is often hostile to technology and investment.”
U.S. Poised for Crypto Resurgence
The optimism surrounding the U.S. stems from both political and technological developments. Over 250 crypto-supportive lawmakers were elected to Congress, raising hopes for bipartisan reforms that could offer regulatory clarity. President-elect Trump’s administration is expected to replace SEC Chair Gary Gensler, whose tenure has been criticized as overly restrictive toward the crypto industry.
This anticipated policy shift coincides with groundbreaking advancements in blockchain technology. Projects such as Ethereum’s upcoming upgrades and the Labyrinth Protocol, which balances privacy with regulatory compliance, are set to redefine blockchain’s role in finance and beyond.
For the U.S., these developments herald a future where real-time payments and AI-driven automation thrive on crypto rails. Companies like Coinbase and Bridge are already integrating blockchain with traditional banking, enabling instant, low-cost transactions—a stark contrast to Canada’s outdated payment systems.
Canada’s Challenges in the Blockchain Era
In Canada, outdated policies and a lack of competition have hampered progress. Park highlights that Canadians pay more than double the costs of their OECD counterparts for financial transactions, a problem exacerbated by the country’s failure to implement a real-time payments system despite promises dating back to 2012.
“Legitimate blockchain businesses frequently struggle to even open a bank account because banks fear government scrutiny,” Park says, painting a grim picture of the country’s regulatory environment. This hesitance has not only stifled domestic innovation but also alienated Canadian users from international platforms.
The Need for Urgent Action
Park calls for a reversal of restrictive policies to unlock blockchain’s potential in Canada. He points to success stories elsewhere: stablecoins enabling near-instant international payments, AI-driven applications automating financial processes, and scalable blockchain solutions lowering costs.
“Blockchain technology will not get uninvented, and Canadians have so much to gain,” Park concludes. “It’s time to remove unnecessary restrictions and barriers so we don’t risk becoming even more of a digital backwater.”
With the U.S. poised to lead a global crypto renaissance, Canada’s hesitance could leave it isolated in the rapidly evolving digital economy.
