Canadian crypto ownership declined amid tight regulations, falling prices

The Bank of Canada (BOC) reported a diminution successful the ownership of Bitcoin (BTC) and cryptocurrencies successful the state past twelvemonth arsenic neither marketplace conditions nor regulations sided successful the favour of Canadian crypto investors, according to a BOC survey published past week.

The yearly Bitcoin Omnibus Survey (BTCOS) conducted by the Canadian cardinal slope showed a relapse from the monolithic crypto adoption witnessed successful 2021.

Bitcoin consciousness and ownership successful Canada, 2016 to 2022. Source: Bank of Canada

The supra graph shows that — halfway into 2022 — Bitcoin ownership successful Canada declined to 9% by August. Although BTC adoption saw a flimsy uptick to 10% by the extremity of the year. However, the driblet successful Bitcoin ownership does not connote that investors were spreading retired their investments into different cryptocurrencies. The study read:

“Investors did not look to displacement retired of Bitcoin and into different cryptoassets, arsenic we observe decreased ownership of altcoins.”

The biggest information for Canadians funny successful Bitcoin is an concern — arsenic showcased by the prime of implicit one-third of the 4,996 respondents successful the BOC survey.

Percentage of Canadians who ain Bitcoin, 2016 to 2022. Source: Bank of Canada

Most Canadians acquired their crypto holdings done mobile and web apps. Bitcoin and crypto mining became the third-most-popular method of accumulating tokens for the 2nd consecutive year.

When it comes to the altcoin ecosystem, Dogecoin (DOGE) was the astir sought-after crypto concern considering the Elon Musk-induced hype and its past of randomly skyrocketing successful price. Ether (ETH), Bitcoin Cash (BCH) and Litecoin (LTC) were immoderate of the different fashionable altcoins for Canadians.

Related: Parliamentary study recommends Canada recognize, strategize astir blockchain industry

According to the BOC, the probe is applicable for monitoring the 2 conditions that could warrant the issuance of an in-house central slope integer currency (CBDC): “if Canadians astir oregon bash halt utilizing cash, oregon if Canadians wide adopt and usage backstage cryptocurrencies for payments.”

— Bank of Canada (@bankofcanada) May 8, 2023

BOC highlighted that ecosystem collapses, on with regulatory hurdles and terms depreciation contributed to the diminution successful crypto ownership. However, considering the government’s intent to supply regulatory clarity combined with a unchangeable market, the crypto ownership successful the portion is expected to prime up arsenic well.

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