Canadian Enthusiasm for Crypto Investment Diminishes

Canadian Enthusiasm for Crypto Investment Diminishes

A recent study conducted by the Ontario Securities Commission (OSC) and Ipsos revealed a decline in Canadians’ interest and enthusiasm for cryptocurrency investment compared to the previous year. The “Crypto Assets Survey 2023” conducted in late May included 2,360 Canadians representing a proportional cross-section of the population. The survey results indicate a prevailing skepticism towards crypto within the country and a decrease in crypto ownership among Canadians.

The study revealed that the ownership of crypto among Canadians has decreased from 13% in 2022 to 10% in 2023. The majority of crypto owners in Canada are likely to be men aged 25-44, with an undergraduate degree or higher, and engaged in full-time employment. This decline in ownership suggests a waning interest in crypto as an investment option.

While more Canadians are capable of providing a fundamental definition of crypto, with the percentage increasing from 51% in 2022 to 54% in 2023, the belief that crypto “will play a key role in the future” has declined to 34%, down from 49% in 2022. This indicates a shift in perception, with Canadians becoming less inclined to perceive crypto as a significant factor in the current economy or anticipate its future importance.

Among the surveyed crypto asset owners, 77% expressed regret over having purchased crypto assets more than a year ago, whereas the figure stood at 68% in 2022. This increased regret could be attributed to the volatility of the crypto market and potential losses incurred by investors. It suggests a growing skepticism and caution among Canadians regarding the long-term value and stability of crypto investments.

The primary rationale cited for purchasing crypto remains 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 decreased from 29% in 2022 to 20% in 2023. This shift indicates a reduced confidence in crypto’s ability to provide sustainable returns over an extended period.

Crypto trading exchanges continue to be the most common way for Canadians to acquire cryptocurrencies, with 52% of owners reporting using this method. 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. Comparatively, more Canadians reported obtaining crypto assets through a decentralized exchange or ATM in 2023, while a lower percentage did so through personal connections.

The study also revealed that Canadians are not particularly interested in a Central Bank Digital Currency (CBDC). The Bank of Canada conducted a separate survey that garnered 89,424 responses, showcasing a strong 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 prevalent, with 85% of respondents stating they would not use a digital Canadian dollar.

The Crypto Assets Survey 2023 highlights a significant decline in Canadian enthusiasm for crypto investment. The decrease in ownership, changing perceptions, regret over past purchases, and shift in investment motives all reflect a growing skepticism towards the long-term viability and significance of crypto in Canada’s economy. Additionally, the lack of interest in a CBDC underscores a broader hesitance towards digital currencies among Canadians. These findings paint a picture of a diminished and cautious outlook on crypto investment within the country.

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