Canadians Show Waning Interest in Crypto Investments: Study Finds

A recent study indicates that Canadians’ enthusiasm for crypto investment has diminished in comparison to the previous year. Moreover, they are now less inclined to perceive crypto as a significant factor in the current economy or anticipate its future importance.

On November 29, the OSC released its “Crypto Assets Survey 2023,” conducted in collaboration with Ipsos in late May. The survey, which included 2,360 Canadians representing a proportional cross-section of the population in terms of gender, age, and region, reveals a prevailing skepticism toward crypto within the country.

Findings

The ownership of crypto among Canadians has decreased over the past year, declining from 13% in 2022 to 10% in 2023. In terms of demographics, the majority of these crypto owners are likely to be men aged 25-44, have an undergraduate degree or higher, and are engaged in full-time employment.

The percentage of Canadians capable of providing a fundamental definition of crypto increased from 51% in 2022 to 54% in 2023. However, the belief that crypto “will play a key role in the future” has declined to 34%, down from 49% in 2022.

Among those surveyed, 77% of crypto asset owners expressed regret over having purchased crypto assets more than a year ago when the figure stood at 68%.

In both 2023 and 2022, the primary rationale cited for purchasing crypto is its role as a speculative investment or gamble. However, the number of crypto owners who report buying digital assets as a long-term investment has fallen from 29% in 2022 to 20% in 2023

Crypto trading exchanges continue to be the most common way to acquire BTC and alts, with 52% of owners reporting to have used such a platform, a figure unchanged from 2022. A total of 19% acquired their crypto assets through a decentralized exchange, 16% through mining or staking, 14% received them for free, 14% through a token generation event or initial offering, and 14% through friends, family, or colleagues.

Compared to 2022, a higher percentage reported obtaining crypto assets through a decentralized exchange or ATM, while a lower percentage did so through friends, family, or colleagues.

The report noted that the shift towards acquisition through a DEX or ATMs was primarily influenced by individuals aged 18-34, who were more inclined to do so compared to 2022. In 2023, 25% acquired their crypto assets through a DEX, up from 18% in 2022. Additionally, 15% of users acquired crypto assets through ATMs in 2023, compared to 8% in 2022.

Meanwhile, only 15% in this age group obtained their crypto assets through friends, family, or colleagues in 2023, down from 25% in 2022.

Majority of Canadians Are Not Interested in CBDC

This pessimism reflected in the report may be attributed to the specific timing of the research when the crypto market was reeling under significant bearish pressure. However, Canadians do not appear to be very keen on a CBDC as well.

New survey results from the Bank of Canada, which gathered 89,424 responses from a diverse range of Canadians, revealed overwhelming opposition to the central bank’s exploration and issuance of a digital loonie. Concerns over potential privacy violations and a preference for existing payment methods were prominent, with 85% stating they wouldn’t use a digital Canadian dollar.