- A new survey indicates that a majority of Canadians still favor cash for transactions.
- Less than 3% of Canadians use cryptocurrencies like Bitcoin for payments.
Survey Insights: Cash Over Crypto
The Bank of Canada’s sixth report on payment methods, released on July 3, reveals that traditional payment methods, particularly cash, continue to dominate the financial landscape in Canada. This survey, involving 4,000 participants, underscores the resilience of cash, noting that approximately 20% of all purchases in 2023 were made with physical currency. Despite the rise of digital and electronic alternatives, the foundational role of cash in everyday transactions remains unshaken.
In comparison, electronic transfers saw significant growth, used by 58% of respondents in 2023, marking a 7% increase from the previous year. Similarly, the usage of PayPal’s e-wallet has expanded, reaching an acceptance rate of 35%. However, the adoption of cryptocurrencies such as Bitcoin remains minimal. Fewer than 3% of Canadians employed Bitcoin as a payment method, a stark contrast considering Canada’s robust infrastructure, including over 3,000 cryptocurrency ATMs—ranking second globally.
The Institutional Perspective: Growing Crypto Confidence
While the Canadian public remains cautious about fully embracing cryptocurrencies, the nation’s financial institutions exhibit growing enthusiasm for these digital assets. According to a report by KPMG from April 2023, 39% of institutional investors in Canada held cryptocurrencies, up from 31% in 2021. This uptick reflects a burgeoning confidence bolstered by enhanced custodial services and a maturing cryptocurrency market.
Furthermore, the introduction of Bitcoin ETFs in Canada has significantly facilitated institutional access to this digital currency, simplifying investments for traditional financial players and potentially setting the stage for broader acceptance.
Divergence in Financial Habits
The contrasting financial behaviors between individual Canadians and institutional investors may signal a forthcoming shift. As the cryptocurrency sector stabilizes and grows, the public’s perception and acceptance might gradually align with the burgeoning enthusiasm observed among financial institutions. This evolution could mark a significant shift in the financial landscape, where digital assets become as commonplace as traditional money.