The usage of Bitcoin and other cryptocurrencies for day-to-day payments in Canada has remained low, with less than 3% of Canadians using them consistently over the past two years, according to a recent survey conducted by the Bank of Canada. The survey also revealed that Canadians continue to exhibit a strong preference for cash and bank cards when it comes to making payments.
While there has been an overall increase in the adoption of alternative payment methods in Canada over the past decade, cash and cards still dominate the market. Among the various alternatives, e-transfer, which allows for money transfers using email addresses or phone numbers, emerged as the preferred choice for most Canadians.
On the other hand, the use of cryptocurrencies as a payment method remains unpopular in Canada. The survey showed that only 2.2% of respondents used cryptocurrencies for payments in 2022, a number that slightly increased to 2.5% in 2023. This reluctance to embrace cryptocurrencies can be attributed to the widespread preference for cash. More than 80% of respondents expressed no intention of giving up cash in the future, a trend that has remained consistent since 2019.
Despite the slow adoption of cryptocurrencies, Canada boasts a thriving Bitcoin ATM ecosystem, ranking second globally in terms of the number of crypto ATMs. The country currently hosts 2,941 active Bitcoin ATMs, as depicted in the accompanying chart.
While the usage of cryptocurrencies may be stagnant, the Bank of Canada is actively pursuing financial innovation. Recently, the central bank partnered with the Bank for International Settlements (BIS) to establish the BIS Toronto Innovation Centre, an innovation hub that will focus on open finance, next-generation financial market infrastructures, and central bank digital currencies. This initiative aims to foster innovation in Canada, Latin America, and the Caribbean.
In conclusion, although the adoption of cryptocurrencies for day-to-day payments remains low in Canada, the country continues to make strides in financial innovation through initiatives such as the establishment of the BIS Toronto Innovation Centre.