Canadians Show Strong Preference for Cash, Crypto Struggles to Gain Traction

Despite the growing global trend toward digital payments, less than 3% of Canadians have embraced Bitcoin or other crypto assets for everyday transactions. This trend has remained prevalent in the country for the last two years.

A recent survey by the Bank of Canada highlights the enduring preference among Canadians for cash and bank cards.

Crypto Adoption in Canada

In 2022 and 2023, most Canadians relied on these conventional payment methods, with minimal interest in shifting to digital currencies.

Among alternative payment methods, e-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 trusted option for many Canadians. In contrast, crypto assets continue to lag far behind in popularity.

The survey revealed that only 2.2% of Canadians used crypto assets for payments in 2022, a figure that rose modestly to 2.5% in 2023. This continuous growth highlights significant challenges for digital assets, particularly in gaining traction as a mainstream payment method in Canada.

Notably, Canadians’ strong attachment to cash is one of the main factors hindering digital currency adoption. Over 80% of survey respondents indicated that they have no intention of abandoning cash in the foreseeable future.

This steadfast commitment to cash transactions has remained consistent since 2019, demonstrating an inherent preference for tangible currency.

Canada Anticipates Crypto Resurgence

However, Canada’s crypto environment seems to be improving. In June, the country reportedly witnessed a rise in digital asset activities, driven by a combination of factors, including a supportive regulatory environment.

Dean Skurka, CEO of the Canadian crypto asset platform WonderFi, shared his insights with Cointelegraph’s Sam Bourgi during the Collision event in Toronto.

He highlighted several key elements fueling the retail market’s resurgence. One significant factor is the recent interest rate cut by the Bank of Canada, which has increased public discretionary spending. 

Additionally, there is a strong demand for Bitcoin and Ether exchange-traded funds (ETFs), which have made digital assets more appealing to a broader audience. The anticipated effect of the Bitcoin halving event is also a factor that could boost the market.

While digital assets struggle to gain acceptance for daily use, the Bitcoin ATM ecosystem in Canada is flourishing.

The country boasts the second-largest network of Bitcoin ATMs globally, following the United States. With 2,941 active Bitcoin ATMs, Canada accounts for 7.7% of the world’s total, which shows a growing infrastructure for crypto asset access despite limited everyday usage.

Interestingly, the Bank of Canada has been exploring strategies to foster financial innovation. It partnered with the Bank for International Settlements (BIS) to establish the BIS Toronto Innovation Center, a new hub that aims to advance financial technology across Canada, the Caribbean, and Latin America.

The Innovation Center will focus on three of the BIS’s priority themes: next-generation financial market infrastructures, central bank digital currencies, and open finance.