That would be a somewhat odd choice of currency. Normally when countries unilaterally adopt foreign currencies or pegs their currencies to other currencies, it is currencies of countries which you have extensive trade, like El Salvador and Ecuador with the U.S. dollar, Kosovo, Montenegro and Andorra with the euro or Liechtenstein with the Swiss franc. The reason for this is that this creates the largest possible trading gains. Having a common currency with countries that you have little trade can't produce much gains.
The Canadian dollar might still be an improvement from a monetary policy point of view given Iceland's inflationist past (which contrary to the widespread myth has not been successful in solving its problems).