Blockchain as a whole is much bigger than crypto. It’s going to drive the way people do business.
— Lawrence Truong, Strategic Advisor, DMG Blockchain Solutions and Former CEO, Binance Canada
The blockchain industry in the BFSI market will witness a growth rate of 67.84% from 2023 to 2028. Canada is right in the thick of it. Projections say North America’s share will be 46% of the global market's growth. Moreover, the Canadian Cryptocurrencies market is gearing up to hit $1.7 billion in 2024.
This blog explores how Canada is becoming a big player in blockchain and what it means for immigrant entrepreneurs.
Understanding the Blockchain Industry in Canada
Canada probably has one of the three biggest hubs for blockchain technology in the world.
— Jason Cassidy, CEO, Crypto Consultant
Canada's blockchain scene is booming with a vibrant mix of startups, government initiatives, and big-league companies all in the game. Toronto is called the "Blockchain Valley." It's the go-to place for all things blockchain on a global scale. Moreover, Vancouver holds down as a hub for blockchain startups.
Companies like Blockchain Intelligence Group and Blockstream are making waves in Canada. Notable projects include the Ethereum-based decentralized platform Aion and the government's exploration of blockchain for transparent and efficient public services.
Emergence of Canada as a Hub for the Blockchain Technology
In 2016, Canada, especially Toronto, was in its initial days of emerging as a blockchain superpower, hosting innovative startups like Paycase Financial Corp. and Coinsquare Ltd. The city turned into a central hub for innovative blockchain projects, setting the stage for why it's now such a big deal in the industry.
Prominent Players in the Canadian Blockchain Scene
Toronto housed influential figures in the blockchain space, including members of Ethereum's founding team, Aion, and Tendermint's Ethan Buchman. Noteworthy projects like Cosmos and ConsenSys also contributed to the vibrant blockchain community.
Toronto's blockchain scene is more than just startups, with the Tapscotts and the Blockchain Research Institute playing key roles in thought leadership. This mix of expertise and research is solidifying Toronto as the go-to spot for blockchain innovation.
Key Factors Driving Canada's Blockchain Growth
Several factors contributed to Canada's rise as a blockchain hub. A vibrant startup scene, strong financial services, and open-minded regulators set the stage. Moreover, the entrepreneurial spirit fueled the growth of the Canadian blockchain industry.
For example, Anthony Di Iorio, Co-founder of Ethereum, went on to launch and fund other blockchain ventures. Moreover, Aion, founded in Toronto, recognized opportunities to improve blockchain platforms in scaling and interoperability. It became a leading global player with a footprint extending worldwide.
Canada's Blockchain Triumph Post-2016
Canada's blockchain scene went through a bit of a chilly spell, surviving what’s called the "crypto-winter" after Bitcoin took a nosedive from 2017 to 2018. Fast forward to 2018, and Canada's blockchain spending was set to hit over eight hundred Canadian dollars by 2023, growing at 73.3% CAGR.
By 2022, the global blockchain market was $11.14 billion, and North America claimed 47.13% of that slice. Looks like Canada not only weathered the winter but came out on top in the blockchain sun.
Current Potential of the Canadian Blockchain Industry
Canada has around 500 blockchain companies, including Infrared Finance, Helika, Polar Bear Systems, and JUCY AI as some of the newer players in the market. The Canadian blockchain industry has immense potential. In fact, in the Canadian cryptocurrency market, the number of users is expected to amount to 12.95m users by 2028.
For example, Tether is on fire in Q4 2023-2024, raking in $2.9 billion profit and stashing $5.4 billion in reserves. This shows Tether is smart with money and can handle the ups and downs in the world of decentralized finance.
Furthermore, a report from the House of Commons talked about how great Canada's blockchain industry can be. They said blockchain could help the economy grow and create jobs. The committee had 16 suggestions for the government to make it even better. These include:
- Acknowledging blockchain as an emerging technology
- Developing a national blockchain strategy
- Creating a regulatory sandbox to facilitate innovative testing
The committee threw a spotlight on the vast possibilities of blockchain, talking about how it can turbocharge efficiency in different corners, including:
- Financial services
- Healthcare
- Travel
- Entertainment
- Agriculture
- Voting
- Supply chains
Immigration and Startup Visa: Gateway to Canada's Innovation Ecosystem
Canada's Startup Visa Program is a guiding light for people from other countries who want to start a business in Canada. This program makes it possible for them to become permanent residents in just 12 to 18 months. The catch is that they need to:
- Start a new and innovative business
- Create job opportunities for Canadians
- Be ready to compete on a global level
Benefits of Canada's Blockchain Ecosystem for Immigrant Entrepreneurs
In Canada, if you're an immigrant entrepreneur interested in blockchain, the environment here is great for coming up with new ideas and growing your business. Here’s how:
- Through Canada's Startup Visa Program, successful applicants and their families gain permanent residency, leveraging social benefits and Canada's high standard of living.
- The visa separates the idea of having a permanent home from how well the startup is doing. This gives stability to entrepreneurs as they face the intricacies of starting and growing their blockchain businesses.
- Faster approvals for crypto-related ETFs and clear taxation policies create a conducive atmosphere for entrepreneurs to operate in the blockchain space.
- Canada's diverse and dynamic startup community in blockchain provides immigrant entrepreneurs with ample networking opportunities, collaboration potential, and exposure to different perspectives and ideas.
- Immigrant entrepreneurs can tap into the nation’s diverse and skilled talent pool to build a skilled workforce for innovation and growth in their blockchain ventures.
- Through many startups, research institutions, and innovative projects. immigrant entrepreneurs can leverage the Canadian blockchain industry’s competitiveness to scale their ventures internationally.
- The Canadian market offers access to various investment opportunities, with investors actively seeking promising blockchain projects. This can help immigrant entrepreneurs fund and scale their startups.
- Canada ranks 33 in global quality of life indices. Immigrant entrepreneurs can enjoy a high standard of living, well-developed infrastructure, and access to excellent education and healthcare systems.
Conclusion
As we wrap up, it's pretty clear that Canada has seriously made a name for itself in the world of blockchain tech. From the early days when it was just getting started to now, Canada's got a mature and buzzing industry full of startups and big players. The current state of Canada's blockchain scene is a mix of both seasoned players and fresh faces, making it quite the happening scene.
Canada is making things easy with the Startup Visa Program, giving immigrant entrepreneurs a direct route to permanent residency. It's a proactive move, welcoming talent with open arms. Beyond immigration benefits, the industry benefits from a supportive regulatory environment, a diverse talent pool, and a lively startup community.
Canada's journey in blockchain is a story of grit, teamwork, and vision. As the industry grows, it's not just about Canada – it's influencing the global blockchain scene. So, if you're thinking blockchain, Canada's the place to be!
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