While Bitcoin continues to dominate headlines and capture the imagination of some investors, a new report suggests Canadians are taking a wait-and-see approach to cryptocurrencies, preferring the familiarity of physical cash.
The Cointelegraph report, citing a recent study from the Canadian Imperial Bank of Commerce (CIBC), revealed that a whopping 82% of Canadians surveyed still rely on cash for everyday transactions. The study, which polled over 1, 500 Canadians, found that debit cards remained the second-most preferred payment method at 77%, followed by credit cards at 68%. Cryptocurrencies, on the other hand, languished at the bottom of the preference list, with only 2% of respondents reporting using them regularly.
The CIBC study delves deeper into the reasons behind Canadians' hesitance towards crypto. The report highlights concerns surrounding crypto volatility, security risks associated with digital wallets, and a lack of understanding about how cryptocurrencies work.
"The concept of cryptocurrency is still relatively new for many Canadians, " said Alice Jackson, a CIBC senior economist quoted in the Cointelegraph report. "There's a general feeling of unease about the security of cryptocurrencies and the wild price swings we've seen in recent years. "
Jackson's comments align with a broader global trend of measured crypto adoption. While some countries, like El Salvador, have embraced cryptocurrencies as legal tender, others, like China, have taken a more cautious approach, implementing strict regulations or outright bans.
Canada's financial regulators have so far adopted a watch-and-learn stance on cryptocurrencies. The Canadian Securities Administrators (CSA), the umbrella organization for provincial securities regulators, issued a guidance note in 2019 outlining the regulatory framework for crypto trading platforms. However, the CSA has yet to implement any sweeping regulations governing cryptocurrency use by individuals.
The CIBC report suggests that this wait-and-see approach from regulators may be contributing to Canadians' cautiousness towards crypto. With the regulatory landscape remaining unclear, many Canadians appear content to stick with traditional forms of payment for the time being.
This isn't to say that Canadians are entirely closed off to the potential of cryptocurrencies. The CIBC study did find that a small but significant portion of respondents (12%) expressed interest in learning more about cryptocurrencies. This suggests that there is a potential for crypto adoption to grow in Canada, but it will likely hinge on increased education, improved security measures, and clearer regulatory guidelines.