How Regulating Bitcoin Will Lead to A More Stable Economy

From 1975 to 1990, Lebanon, my father’s native country, was the scene of a terrible civil war. The climate of political instability that lasted well beyond the war caused high inflation and a national currency devaluation. In 2019, a majority of Lebanese found themselves in a precarious financial situation. Countless families had lost their savings – a sad reality that has forced many to leave the country. Many other countries like Venezuela, Argentina, and Zimbabwe have suffered a similar currency devaluation and inflation that has impoverished their populations.

These realities have convinced me that Bitcoin can protect the wealth of citizens.

The Case for Regulating Bitcoin

As an engineering student at McGill University, I discovered Bitcoin, the blockchain, and the many possibilities this technology holds. I learned that as a decentralized currency, Bitcoin has the potential to become a virtual currency of the future that is not subject to the same pressures as government-issued currencies.

“As a decentralized currency, Bitcoin has the potential to become a virtual currency of the future that is not subject to the same pressures as government-issued currencies.”

In 2015, I co-founded Shakepay in Montreal. Our company allows Canadians to buy and earn Bitcoins. Today, over a million Canadians use our services across the country.

At Shakepay, our focus on Bitcoin is intentional. Many blockchain projects are run by individuals motivated by profit. In contrast, Bitcoin has no CEO, nor is it run by a company. By design, it has a fixed supply of 21 million coins, and no one can create more. This is what makes Bitcoin unique.

My father’s experience, like that of many newcomers, highlights why the uniqueness of Bitcoin is so important. Today, if I were to send money to Lebanon through banking channels, it would take days to arrive and the recipient would only be able to access a fraction of the funds due to their bank’s withdrawal limits. With Bitcoin, I can send money directly and instantly, with no intermediate fees.

This accessibility and inclusivity is what makes Bitcoin so effective. It is a public good. It has the same value whether you live in Asia, Africa, Quebec, or Lebanon.

Can Canada Lead in Crypto?

Crypto as a whole is operating in a challenging macroeconomic environment. Some bad players have also tarnished the reputation of our industry, as evidenced by the bankruptcies of FTX, Celsius, and BlockFi. Some crypto platforms greatly lacked transparency and offered hundreds of volatile and speculative cryptocurrencies. These companies were over-leveraged, poorly regulated, and had poor governance.

“Some crypto platforms greatly lacked transparency and offered hundreds of volatile and speculative cryptocurrencies. These companies were over-leveraged, poorly regulated, and had poor governance.”

At Shakepay, we take a very different approach. We don’t take risks and never lend our clients’ assets. That’s why we take a proactive approach to regulations and push for good corporate governance across the industry. This is precisely why we have always focused on Bitcoin and will continue to do so.

An emerging technology always raises questions. We saw this with the arrival of the Internet, but with time and good policy, it has become essential to our daily lives.

“Governments have a duty to establish a reasonable regulatory framework that will position Canada as an industry leader while eliminating bad players and enhancing customer protection.”

I look forward to the benefits that regulating Bitcoin can bring to Canadians and the world. However, we must support innovation and work with our policymakers to encourage smart regulation. Governments have a duty to establish a reasonable regulatory framework that will position Canada as an industry leader while eliminating bad players and enhancing customer protection. Canada has a unique opportunity to be a key player in determining how this technology can shape our future.