The Decline in Canadian Crypto Users
A recent survey conducted by the Ontario Securities Commission (OSC) reveals that the number of Canadian cryptocurrency users has decreased in 2023. This decline is attributed to fears of a bear market and broader macroeconomic factors.
Virtual Asset Utility Decreases
The survey also indicates that Canadian citizens no longer believe digital assets will play a significant role in the economy as previously anticipated. The percentage of people who believed in the future of assets dropped from 38% in 2022 to 26% this year.
Despite this decline, the survey highlights that the average ownership per user has increased. Although more users left the market, those who remained significantly increased their holdings.
Regret and Limited Interest
According to the survey, 77% of Canadians regret being exposed to digital assets as they are not performing as expected. Additionally, a report from the Bank of Canada shows that citizens still prefer using traditional payment options over the country’s Central Bank Digital Currency (CBDC) project.
Challenges Faced in the Crypto Market
The crypto winter experienced in 2021, characterized by market crashes and regulatory interventions, has impacted investor confidence. As a result, many traders suffered losses, and top assets like Bitcoin and Ethereum plummeted in value. Although there has been a price uptick this year, most users who invested during the high prices of 2021 are still facing losses.
Hot Take: Canadian Crypto Adoption Slows Down Due to Market Factors
The Ontario Securities Commission’s survey reveals that Canadian crypto adoption has slowed down in 2023 due to concerns about a bear market and wider macroeconomic factors. The declining interest in digital assets is evident from the decrease in ownership and the decreased belief in their future utility.
Despite this decline, those who continue to hold digital assets have increased their holdings. However, the majority of Canadians express regret about being exposed to cryptocurrencies, citing underperformance as a key factor.
Furthermore, the preference for traditional payment options over the country’s CBDC project indicates limited enthusiasm for digital currencies. The challenging market conditions, including the crypto winter and regulatory interventions, have also contributed to the decline in Canadian crypto adoption.
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