Tech
Canadians Show Strong Preference for Cash, Cryptocurrencies Struggle to Gain Ground
Despite the growing global trend towards digital payments, less than 3% of Canadians have adopted Bitcoin or other crypto assets for daily transactions. This trend has remained prevalent in the country for the past two years.
A recent one survey from the Bank of Canada highlights Canadians’ persistent preference for cash and credit cards.
Cryptocurrency Adoption in Canada
In 2022 and 2023, most Canadians relied on these conventional payment methodswith minimal interest in switching to digital currencies.
Among alternative payment methods, wire transfers have emerged as a popular choice. This method, which allows users to send money using email addresses or phone numbers, has become a convenient and reliable option for many Canadians. On the contrary, Cryptocurrencies continue to lag far behind in terms of popularity.
The survey found that only 2.2% of Canadians used cryptocurrency for payments in 2022, a figure that rose modestly to 2.5% in 2023. This continued growth highlights significant challenges for digital assets, particularly in gaining traction as a mainstream payment method in Canada.
In particular, Canadians’ strong attachment to cash is one of the main factors hindering digital currency adoption. Over 80% of respondents said they have no plans to abandon cash in the near future.
This continued commitment to cash transactions has remained unchanged since 2019, demonstrating an inherent preference for tangible currency.
Canada Predicts Cryptocurrency Renaissance
However, Canada’s crypto environment seems to be improving. In June, the country as they say has seen a surge in digital asset-related activity, driven by a combination of factors, including a supportive regulatory environment.
Dean Skurka, CEO of Canadian cryptocurrency platform WonderFi, shared his insights with Cointelegraph’s Sam Bourgi during Collision event in Toronto.
He highlighted several key drivers of the retail market recovery. One significant factor is the recent interest rate cut by the Bank of Canada, which has increased discretionary government spending.
Additionally, there is strong demand for Bitcoin and Ether exchange-traded funds (ETFs), which have made digital assets more attractive to a wider audience. The expected effect of the Bitcoin Halving The event is also a factor that could boost the market.
As digital assets struggle to gain acceptance for everyday use, Canada’s Bitcoin ATM ecosystem is booming.
The country boasts the second largest Bitcoin ATM network in the world, after the United States. With 2,941 active Bitcoin ATMs, Canada represents 7.7% of the global total, showing a growing infrastructure for cryptocurrency access despite limited daily use.
Interestingly, the Bank of Canada has been exploring strategies to promote financial innovation. It has partnered with the Bank for International Settlements (BIS) to to establish the BIS Toronto Innovation Centre, a new hub that aims to Promote financial technology across Canadathe Caribbean and Latin America.
The Innovation Center will focus on three priority themes of the BIS: next-generation financial market infrastructure, central bank digital currencies, and open finance.
Disclaimer: The views expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile and high-risk asset class.
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