Cryptocurrency has been in and out of the news over the past decade. It’s slowly been gaining popularity, with an estimated 6.8% of the world—560 million owners—owning cryptocurrency in 2024.
According to The Bank of Canada, Canadian ownership was around 10% in 2023, with a median value of CDN $500.
What is Cryptocurrency?
Cryptocurrency is a type of digital money that only exists online. Instead of being controlled by a central bank or government, it uses special computer codes and a blockchain system to keep it safe and track transactions. Every time someone sends or receives cryptocurrency, the information is recorded on a public list that everyone can see, but no one can change. People can earn or buy cryptocurrency and use it to pay for things or trade it like stocks. It’s a fast and secure way to send money, but its value can change significantly.
Cryptocurrency and Canadian Real Estate
Real estate transactions involving crypto have been used in the US, with the record being a purchase worth about US$1.6M (2,739 bitcoins), but they are still not frequent. The most common real estate transactions involve the buyer converting their digital currency to cash and purchasing the property.
While data tracking blockchain is scarcely available, one platform, Ubitquity, claims to be the first blockchain-secured platform for real estate transactions.
In Canada, there are no cryptocurrency regulations for real estate transactions. While real estate is under provincial/territorial jurisdiction, a realty company could decide to accept cryptocurrency in exchange for property. However, after investigation, Ontario and BC’s real estate councils have warned of the risks of using cryptocurrency for significant transactions like property. They cite the currency as a tool in identity theft and title fraud.
For now, Canada is taking a wait-and-see approach. Without regulation, cryptocurrency could be used for money laundering and other fraudulent activities.
No Protections
The regulatory body, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has clarified that its existing legislation does not cover cryptocurrencies. While the federal government has proposed regulatory measures to subject cryptocurrencies to record-keeping and reporting requirements, nothing has yet passed.
The Future of Real Estate and Cryptocurrency in Canada
The near term remains uncertain as industry usage is minimal, and regulation is non-existent. But that doesn’t mean that they won’t coexist in the future. Cryptocurrency could be used to buy and sell property and as partial investments, whether individuals invest in larger homes or commercial real estate and institutions such as hospitals and universities. Developers also have the potential to crowdsource through micro-investments.
So, while there isn’t any noteworthy cryptocurrency usage in Canadian real estate yet, it should not be ignored. Technology, automation, and blockchain could provide another layer of protection against fraud and corruption, making property transactions more secure.
Are you ready to move to the next stage? Let’s chat. Send me an email (hillary@hillarylane.ca) or text/phone (416-882-4707).
