The Bank of Canada (BOC) has released a study indicating a decline in the ownership of Bitcoin (BTC) and other cryptocurrencies in Canada last year. The study, called the Bitcoin Omnibus Survey (BTCOS), conducted by the central bank, revealed that the adoption of cryptocurrencies experienced a setback in 2022 due to unfavorable market conditions and regulations.
The data presented in the study shows a decline in Bitcoin ownership in Canada, dropping to 9% by August 2022. However, towards the end of the year, there was a slight uptick, with Bitcoin ownership increasing to 10%. It is important to note that the drop in Bitcoin ownership does not mean that investors were diversifying their investments into other cryptocurrencies. The report stated that there was a decrease in the ownership of altcoins as well.
The study also highlighted that the primary motivation for Canadians interested in Bitcoin was investment purposes. This was supported by more than one-third of the 4,996 respondents in the BOC survey. Mobile and web apps were the most common methods for Canadians to acquire their crypto holdings. Additionally, Bitcoin and crypto mining remained the third-most-popular method of accumulating tokens for the second consecutive year.
In terms of altcoins, Dogecoin (DOGE) emerged as the most sought-after cryptocurrency investment in Canada. This can be attributed to the hype generated by Elon Musk and the coin’s history of unpredictable price surges. Other popular altcoins among Canadians included Ether (ETH), Bitcoin Cash (BCH), and Litecoin (LTC).
The BOC emphasized that this research serves as a means to monitor two conditions that could lead to the issuance of a central bank digital currency (CBDC). These conditions include a scenario where Canadians cease using cash or if they widely adopt and use private cryptocurrencies for payments.
The decline in crypto ownership in Canada can be attributed to ecosystem collapses, regulatory hurdles, and price depreciation. However, with the government’s commitment to providing regulatory clarity and a more stable market, it is predicted that crypto ownership in the country will recover.
In conclusion, the Bank of Canada’s study indicates a decline in Bitcoin and cryptocurrency ownership in Canada in 2022. The drop in ownership does not imply a shift to other cryptocurrencies, and the primary motivation for Canadians to invest in Bitcoin is for investment purposes. However, with the government’s efforts to improve market conditions and regulatory clarity, the ownership of cryptocurrencies in Canada is expected to rebound. The study also serves as a means to monitor the conditions that could lead to the introduction of a central bank digital currency in Canada.