Executive Summary
This report analyzes the evolution of Bitcoin awareness, ownership, and usage among Canadians from 2016 to 2020, based on annual surveys conducted by the Bank of Canada. Key findings include:
- Stable Awareness: Nearly 90% of Canadians were aware of Bitcoin by 2018, maintaining this level through 2020.
- Limited Ownership: Only 5% of Canadians owned Bitcoin, with ownership concentrated among young, educated men with high incomes but lower financial literacy.
- Usage Decline: Transactional use of Bitcoin decreased, while investment and technology-related motivations dominated ownership reasons.
- Risks: Half of owners reported incidents like price crashes, scams, or lost access to funds.
Key Findings
1. Awareness of Bitcoin
2016–2020 Trends:
- Awareness rose from 62% (2016) to 89% (2018), stabilizing at 87–88% in 2019–2020.
Demographic Insights:
- Higher awareness among men (93% vs. 81% women), university graduates (94%), and high-income households (91%).
- Quebec residents were least aware (75% in 2020).
2. Ownership Patterns
- Stable Rates: Ownership hovered around 5% from 2018–2020.
Owner Profile:
- Gender Gap: 8.3% of men vs. 2.1% of women owned Bitcoin in 2020.
- Age: 11% of 18–34-year-olds vs. 0.6% of those 55+.
- Financial Literacy: Owners scored lower on financial literacy tests despite higher education levels.
3. Usage and Motivations
Reasons for Owning Bitcoin:
- Investment (39%) and technology interest (31%) were primary drivers.
- Only 15% cited payments or anonymity as key factors.
Transactional Decline:
- 44% of owners never used Bitcoin for purchases (up from 33% in 2018).
- 50% never used it for peer-to-peer transfers (up from 42%).
4. Risks and Incidents
Common Issues:
- 18% suffered losses from price crashes.
- 14% lost access to wallets; 12% fell victim to scams.
Acquisition Methods:
- 50% used web/mobile exchanges; 19% mined Bitcoin.
5. Altcoin and Stablecoin Adoption
- Low Altcoin Ownership: Ethereum (3.4%) and Bitcoin Cash (3.6%) were the most held.
- Stablecoin Awareness: Only 5% of Canadians knew of stablecoins; ownership was negligible (<1%).
FAQs
Q1: How many Canadians own Bitcoin?
Approximately 5% from 2018–2020, with no significant growth despite rising Bitcoin prices.
Q2: Who is most likely to own Bitcoin?
Young men (18–34) with university degrees, high incomes, and lower financial literacy scores.
Q3: Why do people own Bitcoin?
Primarily for investment (39%) or interest in blockchain technology (31%).
Q4: What risks do Bitcoin owners face?
Half reported incidents like price volatility, scams, or lost access to wallets.
Q5: Are stablecoins popular in Canada?
No. Only 5% were aware of stablecoins; ownership of Tether, USD Coin, or Dai was below 1%.
Policy Implications
- Monitoring Needed: Cryptocurrency adoption remains low but poses risks (e.g., scams, volatility).
- Financial Literacy Gaps: Owners’ lower financial literacy underscores the need for investor education.
- CBDC Considerations: Widespread crypto use could prompt central bank digital currency (CBDC) exploration.
👉 Explore more on cryptocurrency trends
Data source: Bank of Canada Bitcoin Omnibus Surveys (2016–2020) and Cash Alternative Survey (2020).
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