backIn 1688, England had a revolution that transformed the politics and the economics of the nation. People fought and won more political rights, which they used to expand their economic opportunities. The new political and economic trajectory culminated in the Industrial Revolution that lad to financial growth and prosperity for centuries to come. In 2008, Satoshi Nakamoto triggered a new revolution, one that liberated individuals from financial intermediaries and offered limitless financial opportunities to businesses.
The paper analyses this new "revolution" and assesses its consequences. The first part explains the concept of blockchain and cryptocurrency, which is the most prominent example of blockchain technology. The second part of the paper examines Bitcoin and attempts to demystify how this cryptocurrency is regulated, produced, valued and accepted across the world. In the third part of the paper, the author attempts to answer two questions. First, could Bitcoin be considered money or currency in Canada? Second, how should we tax it? After an overview of national and international legislation and jurisprudence, the author concludes that no formal consensus exists both with respect to the qualification of Bitcoin and its tax treatment. In proposing a regulatory framework, the author argues for a legislative framework that will foster economic activities and ensure consumer protection while leaving room for the blockchain technology to develop in different directions over time. The last part of the paper describes how Bitcoin could be used for money laundering or other illicit purposes. Ultimately, then, the author concludes that Bitcoin, and blockchain particularly, have reshaped the financial landscape, creating additional competitiveness and leading to a more decentralized system with more choice for consumers and room for only the most efficient businesses