Canada’s Crypto Opportunity
Canada has the potential to become a leader in digital assets, but experts say its progress is being held back by regulatory uncertainty and outdated financial infrastructure. Lucas Matheson, CEO of Coinbase Canada, discussed the economic potential of digital assets in Canada with the Investing News Network (INN) at the Consensus event during Toronto-based Canada Crypto Week.
Matheson explained that 80% of wealth in Canada is managed by professional money managers and investment advisors, presenting an opportunity for crypto assets and digital assets to drive economic growth. “If we want to create economic growth in Canada, I think crypto assets and digital assets can help drive more efficiencies for Canadians in everyday payments,” he said. Digital assets can lower costs for banking fees, increase revenue from businesses accepting cryptocurrencies, and minimize system fees.
However, regulatory hurdles must be overcome before mainstream adoption can occur. Panelists at the Consensus event identified Canada’s regulatory environment as a key factor causing delays. Jelena Djuric, CEO of Noble, noted that Canada is treating digital assets as securities, hindering progress.
A generational shift is fueling adoption from the bottom up, with many Gen Zs engaging with cryptocurrency platforms while understanding traditional credit less. Stablecoins, particularly those backed by the Canadian dollar, can improve settlement times, lower costs, and support new financial use cases. Matheson announced a C$2.5 million deal between Coinbase Ventures and Stablecorp to enhance QCAD, a Canadian dollar-backed stablecoin.
Regulatory Landscape and Future Prospects
Matheson emphasized the need for yield-bearing stablecoins and access to instruments like derivatives and perpetual futures to create a competitive ecosystem. “Millions around the world are earning 4 to 4.5 percent on USDC today — Canadians aren’t allowed to,” he noted. The opportunity lies in introducing these products safely and compliantly in Canada.
Canada’s energy abundance adds to its opportunity in the crypto space. Matheson described Alberta’s position as ideal for data centers and mining operations due to its clean energy. “Hash rate, which is produced from data centers for AI and mining, could be one of the future large commodities in the world,” he said.
Investor Takeaway
Experts believe Canada has the potential and necessary resources to become a leader in digital assets. Matheson is optimistic about working with Prime Minister Mark Carney’s cabinet to embrace technology for economic growth. With the right framework and utilization of its unique resources, Canada is poised to bolster its economy through cryptocurrency and digital assets.
