In a span of two years, Bitcoin and other digital currencies have been utilized for everyday transactions by less than 3% of the Canadian populace. The annual survey by the Bank of Canada underscores a steadfast preference for traditional payment methods like cash and bank cards throughout 2022 and 2023, even as alternative payment options have seen a gradual rise over the last ten years.
**Prevalence of Cash and Card Transactions in Canada**
Among the various payment alternatives, the majority of Canadians favor e-transfers, which involve sending money via email or phone numbers.
Graphical representation of the adoption of payment methods alternative to cash and cards in Canada, courtesy of the Bank of Canada.
Conversely, cryptocurrency has not gained significant traction as a preferred payment method. In 2022, only 2.2% of survey participants reported using digital currencies for transactions, a figure that slightly increased to 2.5% in 2023, as depicted in the aforementioned graph.
**Hesitation Towards a Cashless Society**
The sluggish embrace of cryptocurrencies in Canada can be attributed to a widespread hesitancy to abandon cash. A consistent pattern since 2019, over 80% of survey respondents have expressed no intention to cease cash usage in the foreseeable future.
Insights into Canada’s transition towards a cashless economy, provided by the Bank of Canada.
Despite the plateau in cryptocurrency adoption, the network of Bitcoin ATMs is flourishing across Canada, boasting the world’s second-largest array after the United States. Currently, Canada accounts for 2,941 active Bitcoin ATMs, representing 7.7% of the global total.
A chart detailing the global distribution of cryptocurrency ATMs, sourced from Coin ATM Radar.
**Retail Crypto Market and Financial Innovation in Canada**
While the retail crypto market in Canada is influenced by market dynamics and regulatory frameworks, the Bank of Canada is advancing its commitment to financial innovation. In a notable development, the bank has inaugurated the BIS Toronto Innovation Centre in partnership with the Bank for International Settlements (BIS).
**Advancing Financial Innovation in Canada**
This new hub aims to serve Canada, Latin America, and the Caribbean. Tiff Macklem, Governor of the Bank of Canada, emphasized the importance of this collaboration for spurring innovation across these regions, stating that the hub will concentrate on three key areas: open finance, the next generation of financial market infrastructures, and central bank digital currencies.
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