The Alberta Buck - Legal Foundation (DRAFT v0.3)

Constitution Act, 1867, 30 & 31 Vict, c 3, reprinted in RSC 1985, Appendix II, No 5. The Constitution Act, 1867 is Canada's primary constitutional document establishing the division of powers between federal and provincial governments. Sections 91(14) and 91(15) grant Parliament exclusive jurisdiction over "Currency and Coinage" and "Banking, Incorporation of Banks, and the Issue of Paper Money," respectively.

Currency Act, RSC 1985, c C-52, s 8. Section 8(1) provides: "A tender of payment of money is a legal tender if it is made (a) in coins that are current under section 7; and (b) in notes issued by the Bank of Canada pursuant to the Bank of Canada Act intended for circulation in Canada." This establishes that only Canadian coins and Bank of Canada notes are legal tender in Canada.

Attorney General of Canada v Attorney General of Alberta, [1943] AC 356 (PC). This Privy Council decision established that provinces cannot issue currency or notes that would discharge public debts or taxes, as this would interfere with federal currency powers under s 91(14) and 91(15) of the Constitution Act, 1867.

Bank of Canada Act, RSC 1985, c B-1, s 26. Private bank note issuance in Canada ended with the transition to a monopoly of the Bank of Canada. Section 26 provides: "No bank shall issue, reissue, pay or put into circulation in Canada any bill, note or other instrument intended to circulate as money."

Bank of Canada Museum, History of Canadian Paper Money. The Bank of Canada Museum Archives document the extensive history of private and provincial paper money issuance in pre-Confederation and early post-Confederation Canada, including municipal scrip and provincial notes.

Income Tax Act, RSC 1985, c 1 (5th Supp), s 248(1) defines "property" broadly to include "property of any kind whatever whether real or personal, corporeal or incorporeal." Canada Revenue Agency guidance treats cryptocurrency as property for tax purposes. See CRA, "Guide for Cryptocurrency Users and Tax Professionals" (2021).

Personal Property Security Act, RSA 2000, c P-7. Alberta's PPSA governs security interests in personal property, including the creation, perfection, and enforcement of liens. Section 10 addresses attachment of security interests where "the debtor has signed a security agreement," without requiring transfer of possession to the secured party, while s 13(1) covers registration requirements.

Personal Property Security Act, RSA 2000, c P-7, s 10. Section 10 provides that a security interest is enforceable against third parties where "the debtor has signed a security agreement," without requiring transfer of possession to the secured party. This establishes the statutory basis for non-possessory security interests, where the debtor retains possession and use of the collateral while granting a security interest.

Bills of Exchange Act, RSC 1985, c B-4, s 16. This federal statute governs negotiable instruments and warehouse receipts. Section 16 addresses warehouse receipts and documents of title as choses in action (intangible property rights enforceable by legal action).

Canadian Pacific Railway Co v Dominion Express Co, [1915] 51 SCR 41. This Supreme Court of Canada case provides historical precedent for grain elevator receipts circulating as money-like instruments without requiring title transfer of the underlying commodity.

Sale of Goods Act, RSA 2000, c S-2, s 2. Alberta's Sale of Goods Act governs the sale and bailment of goods. Section 2 addresses bailment arrangements where possession is transferred without transfer of ownership.

Bank Act, SC 1991, c 46, s 2(1). The federal Bank Act defines "deposit" as "a sum of money received or held by a bank on the condition that it is repayable…on demand or after notice." Token issuance that does not create a repayment obligation does not constitute deposit-taking requiring federal banking authorization.

CSA Staff Notice 21-327, "Guidance on the Application of Securities Legislation to Entities Facilitating the Trading of Crypto Assets" (2019). The Canadian Securities Administrators provide guidance distinguishing "value-referenced crypto assets" used primarily for transactional purposes from investment contracts subject to securities regulation. Additionally, see Copytrack Pte Ltd v Wall, 2019 BCSC 872 at para 45, which addresses crypto assets that are not inherently securities if they serve non-investment utility functions.

Securities Act, RSA 2000, c S-4, s 1(1)(t). Alberta's Securities Act defines "security" to include "an investment contract," which encompasses any contract where money is invested in a common enterprise with an expectation of profit from the efforts of others.

Securities Act, RSA 2000, c S-4, s 1(1)(a) and National Instrument 45-106. Alberta securities law provides exemptions for private placements and non-investment utility tokens. National Instrument 45-106 sets out prospectus exemptions for accredited investors and private issuers.

Insurance Act, RSA 2000, c I-3. Alberta's Insurance Act comprehensively regulates insurance contracts, insurers, and insurance practices in the province. Section 460 addresses parametric and "all-risk" insurance policies.

Co-operators General Insurance Co v Bauer, 2021 ABQB 327. This Alberta Court of Queen's Bench decision confirmed that parametric insurance policies (event-triggered payouts without traditional proof of loss) are permitted under Alberta insurance law.

Financial Institutions Act, RSA 2000, c F-14, s 2. Alberta's Financial Institutions Act governs provincial regulation of financial institutions and bundled financial products. Section 2 provides definitions and scope of provincial jurisdiction over financial services.

Personal Property Security Act, RSA 2000, c P-7, s 13(1) and Land Titles Act, RSA 2000, c L-4, s 135. Section 13(1) of the PPSA addresses registration of security interests in personal property. Section 135 of the Land Titles Act addresses registration of liens and encumbrances against real property.

First Canadian Title Co v Ruddy, 2002 ABCA 256. This Alberta Court of Appeal decision addresses title insurance and its function in protecting against liens, fraud, and title defects.

Personal Property Security Act, RSA 2000, c P-7, s 58. Section 58 of the PPSA governs enforcement of security interests through judicial sale and other remedies available to secured creditors upon default.

Uber Technologies Inc v Heller, 2020 SCC 16 at para 33. This Supreme Court of Canada decision addresses adhesion contracts (standard form contracts where one party has no negotiating power). The Court held that such contracts can be binding provided there is fair disclosure of terms and the terms are not unconscionable. This principle applies to smart contract consent mechanisms.

Canada Deposit Insurance Corporation Act, RSC 1985, c C-3. The CDIC Act establishes federal deposit insurance for eligible deposits at member financial institutions. Token-based systems that do not constitute "deposits" (repayable obligations held by banks) fall outside CDIC coverage and federal banking jurisdiction.

Smart contract escrow mechanisms are recognized as legally binding automated contractual arrangements. See Electronic Transactions Act, SA 2001, c E-5.5, s 4, which validates electronic contracts and automated contract execution. While US v Gundy, 139 S Ct 2116 (2019) is a U.S. case addressing delegation of authority, Canadian law follows similar principles recognizing automated contractual mechanisms.

Bank of Canada, "Stablecoins and Tokenized Deposits" Working Paper 2024-35 (2024). This working paper examines private digital currencies and their relationship to sovereign currency, noting that voluntary, non-legal-tender private money can operate alongside sovereign currency without challenging monetary authority. Similar to Amazon gift cards, WIR scrip, or loyalty points, such instruments are functional within their ecosystems.

National Instrument 45-106, "Prospectus Exemptions." This Canadian Securities Administrators instrument provides exemptions from prospectus requirements for private placements, accredited investor offerings, and certain other distributions. Registration with the Alberta Securities Commission may be required if tokens are characterized as investment contracts.

Proceeds of Crime (Money Laundering) and Terrorist Financing Act, SC 2000, c 17. This federal statute requires reporting of transactions exceeding $10,000 to FINTRAC (Financial Transactions and Reports Analysis Centre of Canada) and imposes anti-money laundering obligations on certain financial service providers.

OSFI Guideline E-23, "Crypto-Asset Exposures" (2025). The Office of the Superintendent of Financial Institutions provides guidance on financial institution exposure to crypto-assets, recommending that stablecoins avoid direct CAD pegs and instead emphasize commodity baskets or other value references to avoid characterization as currency substitutes.

Electronic Transactions Act, SA 2001, c E-5.5, s 4. Alberta's Electronic Transactions Act validates electronic contracts and signatures. Section 4 provides that information shall not be denied legal effect solely because it is in electronic form. Section 15 addresses electronic signatures.

Thayer, Theodore. "The Land-Bank System in the American Colonies." The Journal of Economic History, vol. 13, no. 2, 1953, pp. 145-159. This seminal historical research documents the Colonial American Land Banks from 1714-1751, including the Massachusetts, Rhode Island, Pennsylvania, New Jersey, and New York systems. Thayer provides detailed analysis of the mechanism, exchange rates, collateralization ratios, and ultimate failure/success factors of these early asset-backed currency systems.

The Currency Acts of 1751 and 1764 were British Parliamentary acts that restricted colonial paper money issuance in America. The Currency Act of 1751 restricted New England colonies from issuing new bills of credit, while the Currency Act of 1764 extended similar restrictions to all American colonies, prohibiting colonial bills from being legal tender for public or private debts. These acts precipitated colonial resistance and are considered contributing factors to the American Revolution. See Ernst, Joseph Albert. Money and Politics in America, 1755-1775 (1973).

CSA Staff Notice 46-307, "Cryptocurrency Offerings" (2017) and CSA Staff Notice 21-327, "Guidance on the Application of Securities Legislation to Entities Facilitating the Trading of Crypto Assets" (2019). These Canadian Securities Administrators notices provide regulatory guidance on distinguishing utility tokens (used primarily for accessing services or transactional purposes) from investment contracts (securities). Tokens with non-investment utility that serve transactional functions may fall outside securities definitions.

ATB Financial Act, RSA 2000, c A-37. This Alberta statute governs Alberta Treasury Branches (ATB Financial), a provincial Crown corporation financial institution operating since 1938. Section 45(1) provides: "The repayment of all deposits with Alberta Treasury Branches and the payment of all interest thereon is guaranteed by the Crown in right of Alberta." ATB operates outside federal Bank Act jurisdiction and without CDIC participation, demonstrating Alberta's constitutional capacity for provincial financial innovation.

Stodder, James. "Residual Barter Networks and Macro-Economic Stability: Switzerland's Wirtschaftsring" (WIR). Journal of Comparative Economics, vol. 37, no. 4, 2009, pp. 547-564. This peer-reviewed economic research demonstrates that WIR Bank usage inversely correlates with Swiss business cycle indicators, providing countercyclical liquidity during economic contractions and contributing to Switzerland's economic stability.

MakerDAO. "The Maker Protocol: MakerDAO's Multi-Collateral Dai (MCD) System." White Paper,

1. This technical specification describes the MakerDAO protocol architecture, including Maker

Vaults, collateralization mechanisms, stability fees, DAI savings rate, liquidation systems, and governance structures. The white paper details how heterogeneous crypto assets and real-world assets are tokenized and monetized into fungible DAI stablecoins.

Pacific Coast Coin Exchange v Ontario Securities Commission, [1978] 2 SCR 112. This Supreme Court of Canada decision established the "investment contract" test in Canadian securities law, drawing on U.S. precedent. An investment contract exists where: (1) money is invested, (2) in a common enterprise, (3) with an expectation of profit, (4) derived primarily from the efforts of others.

Century Services Inc v Canada (Attorney General), 2010 SCC 60. While this Supreme Court of Canada decision primarily addresses statutory interpretation and Crown priority in bankruptcy, it contains obiter dicta recognizing automated contractual mechanisms. Canadian courts increasingly recognize smart contracts as legally binding agreements implementing traditional contract law principles through code. See also emerging provincial case law on blockchain-based contracts.

Evidence Act, RSA 2000, c A-18. Alberta's Evidence Act governs admissibility of evidence in legal proceedings, including expert evidence. Oracle price determinations and attestations would be subject to expert evidence standards under this statute. Multiple independent oracle sources combined with insurance company attestations create redundant verification meeting evidentiary requirements.

Loan and Trust Corporations Act, RSA 2000, c L-20. This Alberta statute governs trust companies and loan corporations, including requirements for qualified custodians of assets. Trust companies can serve as regulated custodians for real-world assets backing tokenized instruments, providing legal infrastructure for custody arrangements.

Reference Re Alberta Statutes, [1938] SCR 100. This landmark Supreme Court of Canada decision addressed the constitutional limits of provincial legislative authority, particularly Alberta's attempts to regulate banking and credit during the Great Depression. The decision affirmed the division of powers under the Constitution Act, 1867, confirming provincial jurisdiction over property and civil rights (s 92(13)) while preserving federal jurisdiction over banking and currency (s 91(14)-(15)). This case provides important precedent for understanding the boundaries of Alberta's constitutional authority to implement financial innovations like the Alberta Buck.