Cash and Card Dominance Continues in Canada
A recent Bank of Canada survey has unveiled that less than 3% of Canadians have utilized Bitcoin or other cryptocurrencies for day-to-day transactions over the past two years consecutively.
The survey conducted by the Bank of Canada in 2022 and 2023 demonstrated the persistent preference of Canadians for cash and bank cards when making payments. Despite the availability of alternative payment methods, the usage of cash and cards has shown an upward trend over the last decade.
Cash and Cards' Reign in Canada
Among various alternatives to traditional payment methods, a majority of Canadian respondents favored using e-transfers, a convenient way of transferring money using email addresses or phone numbers.
Adoption of alternatives to cash and cards in Canada. Source: Bank of Canada
On the contrary, cryptocurrencies have not gained significant traction as a preferred payment mode in Canada. The survey revealed that in 2022, only 2.2% of respondents utilized cryptocurrencies for transactions, slightly increasing to 2.5% in 2023.
Hesitance Towards a Cashless Era
The primary hindrance to cryptocurrency adoption in Canada is the widespread reluctance to transition to a cashless society. More than 80% of respondents expressed their unwillingness to give up using cash in the foreseeable future, a trend that has been consistent since 2019.
Canada's reluctance to go cashless. Source: Bank of Canada
Despite the slow adoption of cryptocurrencies, Canada boasts a thriving Bitcoin ATM ecosystem. With the second-largest network of crypto ATMs globally, Canada is home to 2,941 active Bitcoin ATMs, as indicated below.
Chart displaying the distribution of crypto ATMs installed worldwide. Source: Coin ATM Radar
Financial Innovation Initiatives in Canada
On another front, the Bank of Canada continues to propel advancements in financial innovation. Recently, in conjunction with the Bank of International Settlements (BIS), the central bank inaugurated the BIS Toronto Innovation Centre.
The new hub, spanning across Canada, Latin America, and the Caribbean, aims to foster innovation in the financial sector, targeting areas such as open finance, next-generation financial market infrastructures, and central bank digital currencies (CBDCs).
As Bank of Canada Governor Tiff Macklem emphasized, this partnership is crucial in driving innovation and ensuring Canadians benefit from these advancements.
The hub will delve into BIS' key priority themes, including the exploration of CBDCs and the development of innovative financial market infrastructures.
