The State of Crypto in Canada: Insights from the Bank of Canada’s Latest Report 🇨🇦
The Bank of Canada’s sixth Methods-of-Payment (MOP) report, released on July 3, sheds light on the current landscape of cryptocurrency adoption in Canada. Despite the global surge in interest in digital currencies, the report reveals that cash remains the preferred choice for transactions among many Canadians. Let’s delve into the key findings and trends highlighted in the report to better understand the state of crypto in Canada.
The Dominance of Cash Payments in Canada 🏦
Cash Still Prevails:
- In 2023, approximately 20% of all purchases in Canada were made using cash, indicating its continued significance in the payment ecosystem.
- Despite the rise of alternative payment methods, cash remains a popular and trusted option for many Canadians.
Emergence of Alternative Payment Options:
- e-Transfer Dominance: The report highlights that 58% of Canadian respondents utilized e-Transfer for transactions in 2023, showcasing a 7% increase from the previous year.
- PayPal Adoption: Following closely behind, PayPal emerged as a favored e-wallet option among Canadians, with a usage rate of 35%.
Low Crypto Adoption:
- Contrary to the growing presence of Bitcoin ATMs in Canada, less than 3% of Canadians utilized Bitcoin as a payment option in 2023.
- The report reflects a stark contrast between the adoption of traditional payment methods like cash and the utilization of cryptocurrencies for transactions.
Institutional Interest in Cryptocurrency ⚖️
Financial Institutions on Board:
- Despite the slow uptake of crypto among the general populace, institutions in Canada are increasingly exploring the asset class.
- A KPMG report from April revealed that a significant number of institutions had exposure to cryptocurrencies in 2023, marking a notable uptick from previous years.
Market Maturation and Custody Solutions:
- Factors such as an evolving custody market and the maturation of the crypto industry have spurred institutional interest in crypto investments.
- The approval of spot Bitcoin ETFs has been a pivotal moment for many institutional investors, signaling a growing acceptance of cryptocurrencies within traditional financial circles.
Closing Thoughts 🚀
In conclusion, while cash continues to reign supreme in Canada’s payment landscape, the burgeoning interest from institutions in cryptocurrencies underscores the evolving perception of digital assets as viable investment opportunities. As the crypto space continues to evolve, it will be intriguing to observe how Canada navigates the intersection of traditional financial systems and the digital economy.
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