Sir, it's a bit of both. Library and Archives Canada has been working on a digitization program, but they have a lot of records to go through. You're talking about miles of shelves of documents. At INAC, it's the same thing; they're talking about digitizing. One of the concerns about INAC digitizing is the destruction of documents as they digitize.
For historical context, when you're doing a court case or a claim, you need to look at the entire file to get a sense of it, so there is a bit of concern if the process of digitization is used as an opportunity to remove some materials from the record.
By and large, most of what we're dealing with are physical hard copies of records.