Canadian cryptocurrency ownership is declining due to strict regulations and falling prices

According to a BoC study published on July 26, the Bank of Canada (BoC) reported a decline in Bitcoin (BTC) and cryptocurrency holdings in the country in 2022 as neither market conditions nor regulations favored Canadian crypto investors.

The study includes data from the Bank of Canada’s annual Bitcoin Omnibus survey, which showed a fallback from massive crypto adoption in 2021.

Awareness and ownership of bitcoin in Canada, 2016 to 2022. Source: Bank of Canada

The chart above shows that bitcoin ownership in Canada has fallen to 9% by August 2022. However, BTC acceptance saw a slight increase to 10% by the end of the year, and the drop in Bitcoin ownership doesn’t mean that investors have diversified their investments in other cryptocurrencies. The report read:

“Investors did not appear to switch from bitcoin to other cryptoassets as we see a decline in altcoin ownership.”

According to over a third of the 4,996 respondents in the 2022 Bank of Canada survey, the top motivation for Canadians interested in Bitcoin is investment.

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

Most Canadians have acquired their crypto holdings through mobile and web apps. Bitcoin and crypto mining became the third most popular method of token accumulation for the second year in a row.

When it comes to the altcoin ecosystem, Dogecoin (DOGE) has been the hottest crypto investment given the hype fueled by Elon Musk and its randomly skyrocketing prices in the past. Ether (ETH), Bitcoin Cash (BCH), and Litecoin (LTC) were some of the other altcoins popular with Canadians.

Related: The parliamentary report recommends Canada to recognize and develop strategies for the blockchain industry

According to the BoC, the investigation is relevant to monitoring the two conditions that could justify the issuance of a central bank internal digital currency (CBDC): “when Canadians almost or actually stop using cash, or when Canadians adopt largely private cash and use.” Cryptocurrencies for payments.”

Hello Canada, we need your input!

Our public consultation on a potential #DigitalCanadianDollar is now LIVE. #HaveYourSay until June 19: https://t.co/p8BdG3tQ9h pic.twitter.com/vKRoBfAngu

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

The BoC emphasized that ecosystem collapse, regulatory hurdles and price erosion have all contributed to the decline in crypto ownership. However, given the government’s intention to bring clarity to regulation while creating a stable market, cryptocurrency ownership is expected to increase in the region.

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