The crypto revolution is struggling to catch on with Canadians. Despite the increase in interest in these assets 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 still dominates payment habits in Canada
According to the Bank of Canada’s sixth Payment Methods Report, released on July 3, crypto adoption remains limited among Canadians. Of the 4,000 respondents surveyed, a 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 options have seen a significant increase in usage, but they have yet to dethrone cash.
Electronic money transfer, for example, was used by 58% of respondents in 2023, up 7% from the previous year. PayPal’s e-wallet 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 ATMs of the leading crypto, ranking it second in the world for this type of infrastructure. Despite these facilities, the majority of Canadians do not appear ready to give up cash. In fact, 80% of respondents say they have no plans to move to a cashless society in the near future.
Crypto adoption by Canadian institutional investors on the rise
Despite limited adoption of crypto among the Canadian public, the country’s financial institutions are showing strong interest in these digital assets. According to a KPMG report from April, 39% of institutional investors in Canada held crypto in 2023, a significant increase from 31% in 2021. This trend indicates growing confidence in digital assets, fueled by improved custody services and increased maturity of the crypto market.
The approval of Bitcoin ETFs has also contributed significantly to the increase in institutional adoption in Canada. These ETFs provide direct exposure to bitcoin, making it easier for traditional investors to access this crypto.
Canadians’ limited adoption of crypto contrasts with growing enthusiasm among the country’s financial institutions. This divergence in financial habits could change as cryptocurrencies stabilize and the industry grows.
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