Canadians Continue to Prefer Cash Over Cryptocurrency, Bank of Canada Survey Shows
According to the Bank of Canada’s latest Methods-of-Payment report, released on July 3, 2024, Canadians still have a strong preference for using cash rather than cryptocurrency. Despite the global interest in digital currencies, cash remains the popular choice for transactions in Canada.
The survey, which involved 4,000 respondents, provided insights into their spending habits. It revealed that cash accounted for approximately 20% of all purchases in 2023. While alternative payment options have seen an increase in usage, they have not surpassed the popularity of cash.
Among the alternative payment options, e-Transfer was the most favored by Canadians, with 58% of respondents using this method in 2023. This marks a 7% increase from the previous year. PayPal’s e-wallet option followed closely behind, with an adoption rate of 35%.
Surprisingly, despite the availability of Bitcoin automated teller machines (ATMs) in Canada, less than 3% of Canadians actually used Bitcoin as a payment option. Canada is known as the second-largest Bitcoin ATM hub globally, with over 3,000 machines installed. The first crypto ATM was installed in Vancouver in 2013.
When asked about their future plans, 80% of respondents stated that they have no intention of going cashless. They cited reasons such as avoiding bank fees, privacy breaches, and the ability to use cash even during internet outages.
Interestingly, while individual adoption of cryptocurrency remains low, Canadian institutions are increasingly showing interest in this asset class. A report by KPMG in April revealed that 39% of institutional investors in Canada had exposure to cryptocurrency in 2023. This marked a significant increase of 31% from the previous year. The improved custody market and the maturing nature of the crypto market were identified as key factors encouraging institutional involvement. The approval of spot Bitcoin exchange-traded funds (ETFs) was seen as a pivotal moment for many institutions.
Despite the slow adoption of cryptocurrency among the general population in Canada, the interest from institutions indicates a growing recognition of its potential. However, for now, cash remains the preferred method of payment for most Canadians.
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