In Canada, the preference for traditional payment methods such as cash and cards still remains strong, as shown by a recent survey conducted by the Bank of Canada. Despite the increasing popularity of electronic payments, the adoption of cryptocurrencies in the country is still minimal. Only a small percentage of Canadians use Bitcoin and other digital assets for daily transactions, with the majority opting to carry cash instead.
Cash and Cards: The Backbone of the Payment Sector in Canada
The survey revealed that in 2023, a staggering 80% of Canadians continued to carry cash with them, highlighting the deep-rooted attachment to physical money. The average amount of cash held by individuals also saw an increase over the years, from 72 Canadian dollars in 2009 to the current 140. While electronic payment options have emerged in the past decade, the use of cryptocurrencies remains low at only 2.5%.
Bank cards remain the most widely adopted payment method in Canada, with 98% of the population owning at least one debit card and 89% holding a credit card. This preference for cards can be attributed to the limited availability of automated banking machines (ABMs) in the country. Despite efforts to promote digital payments, the use of cash and cards continues to dominate the payment landscape.
Canada’s Slow Adoption of Cryptocurrency
The adoption of cryptocurrencies in Canada has been progressing at a slow pace, with only 2.5% of individuals choosing digital assets over traditional payment methods in 2023. This reluctance to embrace crypto can be attributed to a widespread preference for cash among Canadians. Over 80% of survey respondents expressed no desire to give up using physical money in the future, citing comfort and familiarity as key reasons.
While Canada is considered a technologically advanced country in the crypto space, the overall adoption rate remains low compared to other payment alternatives. The country boasts a significant number of Bitcoin ATMs, with 2,941 devices for depositing and withdrawing Bitcoin, making up 7.7% of all active machines globally. Despite this infrastructure, the majority of Canadians still prefer cash and cards for their everyday transactions.
Bank of Canada’s Push for Technological Innovation
In an effort to promote technological innovation and stimulate the adoption of cryptocurrencies, the Bank of Canada has established a new hub for innovation in Toronto. The “IS Toronto Innovation Centre” will serve as a focal point for collaboration between Canada, Latin America, and the Caribbean, focusing on open finance and alternative financial markets. The initiative aims to break the cultural barriers that hinder the adoption of crypto in the country.
While the push for crypto adoption is gaining momentum, Canada’s stringent regulations pose a challenge for the industry. The country imposes limits on the purchase of cryptocurrencies, with citizens restricted to buying no more than 30,000 dollars worth of digital assets per year. This regulation has been criticized for hindering the growth of the crypto sector and limiting investment opportunities for Canadians.
Despite the slow progress in the adoption of cryptocurrencies, Canada remains at the forefront of technological innovation in the financial sector. With continued efforts to promote digital payments and bridge the gap between traditional and digital currencies, the country is poised to embrace the future of finance.
