Recent surveys conducted by the Bank of Canada reveal that the adoption of cryptocurrency for everyday transactions in Canada remains low, with less than 3% of Canadians using Bitcoin or other cryptocurrencies for payments in 2022 and 2023. This trend highlights a sustained preference for traditional payment methods like cash and cards among Canadians.
The surveys, conducted annually, show a consistent pattern over the past decade, with cash and cards remaining the dominant payment methods for day-to-day purchases. Although the use of alternative payment methods has generally increased, cryptocurrencies have not seen significant uptake.
Reluctance to Go Cashless a Major Factor
A significant factor contributing to the slow adoption of cryptocurrency in Canada is the widespread reluctance to abandon cash. Over 80% of survey respondents indicated no intention of stopping cash usage in the future, a trend consistent since 2019. This preference for cash presents a significant obstacle to the broader adoption of cryptocurrencies.
Of the alternative payment methods, e-transfer, a method of transferring money using email addresses or phone numbers, emerged as the most popular among Canadians.
Crypto Adoption Stagnates Despite Growing ATM Network
While the adoption of cryptocurrencies for payments remains stagnant, the Bitcoin ATM ecosystem in Canada continues to expand. Canada currently boasts the second-largest network of Bitcoin ATMs globally, trailing only the United States. However, this growth in infrastructure has not translated into a corresponding increase in the use of cryptocurrencies for everyday transactions.
Conclusion
The findings of the Bank of Canada surveys highlight the challenges faced by cryptocurrencies in gaining traction as a mainstream payment method in Canada. The preference for cash and the lack of widespread adoption remain significant hurdles to overcome. Despite the growing infrastructure supporting cryptocurrencies, their use for daily transactions remains limited, indicating a need for further understanding and acceptance before they can become a widely used payment option in Canada.
July 2024, Cryptoniteuae