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Canadians Still Prefer Cash Over Cryptocurrency!
4h00 ▪ 3 min read ▪ by Luc Jose A.
The cryptocurrency revolution is struggling to captivate Canadians. Despite growing interest in these activities internationally, Canadians remain attached to more traditional payment methods. At least that’s what a recent survey conducted by the country’s central bank reveals.
Cash continues to dominate payment habits in Canada
According to the Bank of Canada’s sixth Payment Methods Report, released on July 3, cryptocurrency adoption remains limited among Canadians. Of the 4,000 people surveyed, the majority showed a strong preference for cash transactions. In 2023, about 20% of purchases were made in cash, highlighting the persistence of this traditional payment method. The Bank of Canada report reveals that alternative payment methods have seen a significant increase in use, but have not yet managed to supplant cash.
Electronic transfers, for example, were used by 58% of respondents in 2023, up 7% from the previous year. PayPal’s e-wallet has also gained popularity, reaching a 35% adoption rate.
However, less than 3% of Canadians have used bitcoin as a payment method, which is in stark contrast to the fact that Canada is home to over 3,000 cryptocurrency ATMs, making it the second-most in the world for such infrastructure. Despite these installations, most Canadians do not appear ready to give up cash. In fact, 80% of those surveyed said they have no plans to transition to a cashless society in the near future.
Cryptocurrency Adoption Rises Among Canadian Institutional Investors
Despite the limited adoption of cryptocurrencies by the general Canadian public, the country’s financial institutions are showing strong interest in these digital assets. According to an April report by KPMG, 39% of institutional investors in Canada held cryptocurrencies in 2023, a significant increase from 31% in 2021. This trend indicates growing confidence in digital assets, fueled by improved custody services and a greater maturity of the cryptocurrency market.
The approval of Bitcoin ETFs has also contributed greatly to the increase in institutional adoption in Canada. These ETFs offer direct exposure to bitcoin, making it easier for traditional investors to access this cryptocurrency.
Canadians’ limited adoption of cryptocurrencies contrasts with growing enthusiasm of the country’s financial institutionsThis divergence in financial habits could evolve as cryptocurrencies stabilize and the industry develops.
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Luke Jose A.
Graduated in Sciences Po Toulouse and owner of a blockchain certification consultant issued by Alyra, I resumed the Cointribune adventure in 2019. Aware of the potential of blockchain to transform many sectors of the economy, I made a commitment to raise awareness and inform the general public about this constantly evolving ecosystem. My goal is to enable everyone to better understand blockchain and take advantage of the opportunities it offers. I strive every day to provide an objective analysis of current events, to decipher market trends, to convey the latest technological innovations and to put in perspective the investors and companies that are facing this ongoing revolution.
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Do your own research before making any investment decisions.