Cryptocurrencies are here to stay, and while people are still catching up with this trend and trying to understand how cryptocurrencies work, there are several enterprising companies and individuals which have already begun to think of the next step, and are designing solutions and products which incorporate crypto. The world of finance is the biggest adopter of crypto in this regard, with several tools and products available already that are using crypto and blockchain for various benefits. One example of this comes from Canada, where a mortgage firm is giving customers the chance to earn Bitcoin as cashback.
The firm in question is Mogo Finance Technology, which is a fintech firm specializing in mortgages. Customers who take out new mortgages or refinance existing ones can earn up to CA$3,100 in cashbacks, under a program being called 'MogoMortgage', where the money will be distributed into client accounts from where it can be used to purchase Bitcoin through the MogoCrypto program in the Mogo app. According to David Feller, CEO of Mogo, this program will give Canadians the chance to participate in the growing crypto market without having to risk their own money, and therefore avoid concerns around the risks and volatility of Bitcoin and other cryptocurrencies.
Canada has been one of the most open countries when it comes to cryptocurrency adoption, with the government being very supportive of the technology, and various sectors using cryptocurrencies to improve their services for customers. We have seen cryptocurrencies get adopted into the gaming market, for example, in Canada, especially in the online gambling space, which is extremely popular. There are multiple online casinos in Canada that allow users to place bets via cryptocurrencies, and so, bitcoin gambling in Canada offered by Winz.io casino is just one example of how this trend has allowed the Canadian online betting and gambling sector to thrive during a very difficult year. Thus, it is no surprise that Canadian firms in other sectors are also offering new and innovative products to their customers which incorporate crypto in some way.
This program will be available to members in selected provinces of Canada at the moment, including Alberta, British Columbia, Manitoba, Nova Scotia, Newfoundland and Labrador, Ontario, New Brunswick and Prince Edward Island. The program already applies to Mogo Visa Platinum prepaid card holders, which allows users to earn 1% cashback on purchases in Canada and 2% on foreign transactions, with that money again being available for use within the app to purchase bitcoin.
Mogo has made investments in the crypto sector in Canada, having recently bought a 19.99% stake in the Canadian cryptocurrency exchange Coinsquare, with the right to purchase additional shares to take its ownership stake up to 40%. Additionally, the company had announced its intention to make a corporate purchase of CA$1.5 million in bitcoin in December 2020, with additional purchases possible throughout 2021. This shows how various firms in Canada are investing in the crypto space in multiple ways, and Mogo is likely to be followed by many others in the coming months.
The Canadian residential mortgage market is estimated to be worth CA$1.7 trillion, while Mogo Finance Technology has a market capitalization of around CA$500 million. This shows the size of Mogo's user base, and this program could spark a wave of crypto investment in Canada, especially as users will not be putting their own money at risk, which should make it more attractive for them to invest in cryptocurrencies. This is certainly an innovative product, and we can be quite sure that Mogo's mortgage products will be selling like hot cakes as a result in the months to come.