Question

Should Canada accept bitcoin as a legal currency? What will influence the economy of Canada and the world?

Answer 1

Such step will have much influence on economy. First black money stored in form of bitcon may become white money. The canadian central bank will loose control over money supply in short run but not in longrun as it will apply regulations for banks, FIs etc on bitcon in the longrun. Because of above action Canadian dollar may fall in value substantially as investors switch from Canadian dollar to bitcon. Also speculation about value of Canadian dollar will led to fall in Canadian dollar. Exports Nat thus increase and imports fall. Conversely other countries exports to Canada may fall. Their imports from Canada may rise. Their holdings of Canadian dollars may get devaulved and they may sell it leading to further fall in Canadian dollar. Other countries may follow Australia in accepting bitcon as legal tender