Canadians Still Prefer Cash Over Crypto!

The crypto revolution struggles to captivate Canadians. Despite the increasing 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 sixth report on payment methods by the Bank of Canada, published on July 3, crypto adoption remains limited among Canadians. Of the 4,000 people surveyed, a majority showed a marked 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 significant increases in usage, but they have not yet managed to dethrone cash.

Electronic transfers, for instance, were used by 58% of respondents in 2023, an increase of 7% compared to the previous year. The electronic wallet PayPal has also gained popularity, reaching an adoption rate of 35%.

However, less than 3% of Canadians used bitcoin as a payment method, which starkly contrasts with the fact that Canada is home to more than 3,000 crypto ATMs, making it second in the world for such infrastructure. Despite these installations, the majority of Canadians do not seem ready to give up cash. Indeed, 80% of respondents stated that they do not intend to switch to a cashless society in the near future.

Bank of Canada Survey Shows Canadians Prefer to Use Cash Rather Than Crypto pic.twitter.com/0CJ0tabkBM

— CryptoMaksymus (@CryptoMaksymus) July 4, 2024

Crypto adoption by Canadian institutional investors on the rise

Despite the limited adoption of cryptos 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 cryptos in 2023, a significant increase from 31% in 2021. This trend indicates growing confidence in digital assets, fueled by improved custodial services and increased maturity of the crypto market.

The approval of Bitcoin ETFs has also strongly contributed to increasing institutional adoption in Canada. These ETFs offer direct exposure to bitcoin, thus facilitating access to this crypto for traditional investors.

The limited adoption of cryptos by Canadians contrasts with the growing enthusiasm of the country’s financial institutions. This divergence in financial habits could evolve as cryptocurrencies stabilize and the industry develops.