Canada has quietly become a significant player in the recent blockchain revolution. From financial services and real estate to supply chain management and healthcare, businesses nationwide increasingly use distributed ledger technology to streamline operations, improve transparency, and cut costs. Though once closely associated with cryptocurrencies such as Bitcoin, the potential application of blockchain technology has since grown well beyond digital currency. Industry professionals are confident that Canada’s early blockchain implementation could provide a competitive advantage for the nation in a changing digital economy.

David Birkenshaw, the Managing Director of Birkenshaw & Company Ltd., says the increased adoption of blockchain in Canada is reflective of changing times.

“We’re seeing a wider acknowledgement of blockchain beyond a vehicle for crypto. Its ability to verify, secure, and trace transactions is being applied to everything from property contracts to verifying supply chain authenticity,” he says. “This change is driven by the need for trust and efficiency in sectors that have historically lacked transparency.”

A 2022 Blockchain Market report says that the country’s blockchain industry is growing at an enormous rate. The industry is predicted to reach $117 billion in 2028, up from $4.56 billion in 2021, representing a compound annual growth rate (CAGR) of over 59%. This surge is due to greater investments in blockchain-based infrastructure and the veritable digitization of services. Blockchain-secured patient records are being adopted in sectors like healthcare, and real estate agencies are adopting blockchain to make property transactions more efficient.

Birkenshaw believes the technology’s potential lies in its versatility. “We’re moving towards a future that involves blockchain in the routine of everyday systems. It’s already being used to trace carbon credits, verify fair trade compliance and authenticate luxury goods. The applications will be limitless,” he says. “Companies that apply blockchain to their operations today will be ahead of the curve.”

Financial services is one of the biggest adopters of blockchain technology in Canada. The Bank of Canada has been conducting feasibility studies of a central bank digital currency (CBDC), which could be run on a blockchain platform. For Canadian fintech companies, this innovation is a result of decentralized ledgers that enable them to provide speedy and secure payment processing. Blockchain helps in real-time settlement and lowers transaction fees, making blockchain-based finance more appealing to businesses and customers.

Blockchain is also being applied to public and private services. In Canada, municipal governments are considering blockchain-based voting systems to ensure the security of elections and prevent voting fraud. Moreover, the agriculture industry is adopting blockchain to trace food supply chains, improving food safety and preventing waste.

Birkenshaw notes that blockchain could also play a big role in Canada’s sustainability goals. “Blockchain is being used to track carbon emissions and verify offsets. With the country’s move toward net-zero goals, this technology can be an important tool for measuring and enforcing environmental commitments,” he says.

Though it may look promising, blockchain adoption does not come without challenges. Regulatory uncertainty remains one of the biggest obstacles, with Canadian regulators still figuring out how to oversee decentralized systems. Even the energy-intensive nature of some blockchain networks is a matter of discussion about their environmental effects. However, industry experts like Birkenshaw are hopeful that Canada will catch up.

“There’s still a lot of work ahead regarding regulation and standardization, but the momentum cannot be denied. Blockchain is driving new efficiencies, increasing security, and promoting transparency. It will be a fundamental layer of business infrastructure,” Birkenshaw says.

With Canadian companies increasingly implementing blockchain, the technology is evolving from a niche innovation to a foundational pillar of the country’s vibrant digital economy. With billions of dollars of investment flowing into the sector and more practical use cases emerging, Canada is positioned to be a global leader in blockchain adoption.