Eyewear retailer clears way for Bitcoin
ClearlyContacts. ca accepts digital currency
Online eyewear retailer ClearlyContacts. ca has become the first major Canadian ecommerce retailer to accept Bitcoin as payment.
Roger Hardy, founder and CEO of the Vancouver- based company, said the decision was prompted not only by customer demand but by urging from its staff.
“Our staff said ‘ We’re a technology business, we need to be at the front of this trend,’” he said. “This is going to get more traction. You can tell when these trends are going to stick. They start with the 20- somethings, they say, ‘ This is the next Facebook and we want to be part of it.’”
But while the company is the latest to join a growing trend, a report released Wednesday warns the digital currency lacks the legal framework it needs to move mainstream.
“If Bitcoin wants to continue to grow it will have to be adopted by more consumers, companies and maybe even banks,” said David Descôteaux, author of the Montreal Economic Institute’s publication Bitcoin: More Than a Currency, a Potential for Innovation. “If this is to happen, there is a need, I believe, for a regulatory framework.”
Descôteaux said while there are advantages to the cryptocurrency, there are also risks.
“From a consumer side, a lot of people would be afraid of having no recourse if they use Bitcoin to pay for something. And from the point of view of merchants and businesses, I think some of them want to use Bitcoins as a form of payment, but they don’t know what to do, how to comply with the law and how to pay taxes. A legal framework is something Bitcoin needs if it is going to go mainstream.”
Vancouver became home to the first Bitcoin ATM in the world last October and more are being rolled in cities including Toronto. The price of the digital currency, which is created electronically and stored in a virtual wallet, has experienced wide fluctuations, but Wednesday was about $ 940.
There are no regulations in Canada governing digital currency, although Canada Revenue Agency issued a fact sheet last November saying that if such currency is used to pay for goods and services, “the rules for barter transactions apply,” and the value of the transaction — in Canadian dollars — must be included in the seller’s income when it comes to taxes.
A growing number of Metro Vancouver businesses are accepting Bitcoin in payment for goods, including Waves Coffee House, while Abbotsford developer Quantum Properties is accepting Bitcoin for deposits for home sales. The giant retailer Overstock. com started accepting Bitcoin, tallying up the equivalent of $ 130,000 US in transactions in the first day its customers could use it.