Despite the rising worldwide trend toward digital payments, fewer than 3% of Canadians have accepted Bitcoin or other crypto resources for everyday dealings. This tendency has remained predominant in the country for the last two years. A new survey by the Bank of Canada underlines the continuing favorite among Canadians for cash and bank cards.
In 2022 and 2023, most Canadians trusted these orthodox payment means, with minimal interest in transferring to digital currencies. Among substitute payment methods, e-transfers have arisen as a common choice. This process, which permits users to direct money using email addresses or phone numbers, has developed into an appropriate and reliable choice for many Canadians. In comparison, crypto assets endure delays far behind in acceptance.
The study exposed that only 2.2% of Canadians used crypto resources for expenditures in 2022, a number that rose discreetly to 2.5% in 2023. This constant growth signifies substantial challenges for digital resources, mainly in gaining traction as a conventional payment method in Canada. Particularly, Canadians’ strong dependence on cash is one of the key factors delaying digital currency acceptance. Over 80% of study respondents specified that they have no intent of deserting cash in the predictable future.
This unwavering commitment to cash transactions has endured consistently since 2019, representing a characteristic preference for physical currency. However, Canada’s crypto setting seems to be cultivating. In June, the country reportedly observed an increase in digital asset activities, motivated by a blend of factors, as well as a helpful regulatory environment. Dean Skurka, CEO of the Canadian crypto asset platform WonderFi, shared his understanding with Cointelegraph’s Sam Bourgi during the Collision occasion in Toronto. He emphasized numerous key fundamentals powering the retail market’s resurrection. One important factor is the new interest rate cut by the Bank of Canada, which has augmented public flexible spending.
Furthermore, there is a robust demand for Bitcoin and Ether exchange-traded funds (ETFs), which have made digital resources more attractive to a broader audience. The expected effect of the Bitcoin halving incident is also an influence that could boost the market. While digital assets fight to gain acceptance for everyday use, the Bitcoin ATM network in Canada is thriving. The country claims the second-largest network of Bitcoin ATMs worldwide, following the United States. With 2,941 active Bitcoin ATMs, Canada accounts for 7.7% of the world’s total, which displays a rising structure for crypto asset admission despite restricted everyday usage. Remarkably, the Bank of Canada has been exploring policies to foster financial modernization. It joined with the Bank for International Settlements (BIS) to establish the BIS Toronto Innovation Center, a novel hub that intends to advance financial technology across Canada, the Caribbean, and Latin America. The Innovation Center will emphasize on three of the BIS’s priority themes: next-generation financial market structures, central bank digital currencies, and open finance.
