Despite the proliferation of Bitcoin ATMs, Canadians continue to prefer cash and card payments for daily transactions. Learn about the latest trends in Canada's payment methods and the nation's stance on cryptocurrencies.
For the past two years, Canadians have demonstrated a strong preference for cash and card payments for everyday purchases, showing a marked reluctance to adopt cryptocurrencies for daily transactions. Less than 3% of Canadians have used Bitcoin or other cryptocurrencies for day-to-day payments for two consecutive years, according to a yearly Bank of Canada survey.
Cash and Cards Dominate Payment Methods
The survey highlighted Canadians' long-standing affinity for cash and bank cards for making payments in both 2022 and 2023. Despite the growing availability of alternative payment methods over the past decade, cash and cards remain the dominant choice.
Among the alternatives to cash and cards, e-transfer—a method of transferring money using email addresses or phone numbers—was the most preferred by Canadian respondents.
Cryptocurrency Usage Remains Low
Cryptocurrencies remain the least favored payment method in Canada. In 2022, only 2.2% of respondents used cryptocurrencies for payments, a figure that slightly increased to 2.5% in 2023.
Reluctance to Embrace a Cashless Future
The primary reason for the slow adoption of cryptocurrency in Canada is the widespread reluctance to go cashless. Over 80% of respondents indicated that they have no plans to stop using cash in the future, a consistent trend since 2019.
Bitcoin ATM Ecosystem Thrives
Despite the stagnant crypto adoption for payments, the Bitcoin ATM ecosystem continues to thrive in Canada. The country hosts the second-largest network of crypto ATMs globally, with 2,941 active Bitcoin ATMs, accounting for 7.7% of the world's total.
Financial Innovation in Canada
On the other hand, the Bank of Canada is actively pursuing financial innovation. Recently, the central bank inaugurated a new innovation hub in collaboration with the Bank for International Settlements (BIS), called the BIS Toronto Innovation Centre. This new hub will work across Canada, Latin America, and the Caribbean, focusing on open finance, next-generation financial market infrastructures, and central bank digital currencies.
Bank of Canada Governor Tiff Macklem emphasized the importance of innovation in the financial sector, stating, "As the financial sector continues to evolve, we need to innovate in different areas and apply skills that aren’t traditionally associated with central banking. By doing so, Canadians can share in the benefits of innovation."
While Canadians continue to favor cash and cards for daily transactions, the growing presence of Bitcoin ATMs and efforts toward financial innovation signal an evolving landscape. The Bank of Canada's initiatives and the thriving ATM ecosystem suggest a potential shift in the future, although widespread adoption of cryptocurrencies for day-to-day payments remains limited for now.
At OMGfin, we explore the latest trends and developments in the crypto world. Join us as we delve into Canada's payment preferences and the future of digital assets. Stay informed and engaged with us to understand the evolving financial landscape.
(ARIJIT SARKAR, COINTELEGRAPH, 2024)