A recent study conducted by the Ontario Securities Commission (OSC) reveals that Canadians’ enthusiasm for crypto investments has significantly declined compared to the previous year. The study, titled “Crypto Assets Survey 2023,” was conducted in collaboration with Ipsos and included 2,360 Canadians. This article delves into the findings of the survey, highlighting the shifting perceptions and behaviors of Canadians towards cryptocurrency.
Decreasing Crypto Ownership
According to the survey, the ownership of crypto among Canadians has decreased from 13% in 2022 to 10% in 2023. This decline suggests a growing skepticism towards cryptocurrencies within the country. The majority of crypto owners in Canada are likely to be men aged 25-44, possessing an undergraduate degree or higher, and engaged in full-time employment.
Changing Perceptions and Beliefs
The percentage of Canadians capable of providing a fundamental definition of crypto increased from 51% in 2022 to 54% in 2023. However, interestingly, the belief that crypto “will play a key role in the future” has declined to 34% in 2023, down from 49% in 2022. This change in sentiment indicates a diminishing faith in the long-term potential of cryptocurrencies.
Regret Among Crypto Asset Owners
The survey revealed that 77% of crypto asset owners expressed regret over their crypto purchases made more than a year ago. This regret has seen an increase compared to the previous year when the figure stood at 68%. It suggests that a significant portion of Canadians have experienced negative outcomes or losses in their crypto investments.
In both 2022 and 2023, the primary rationale cited for purchasing crypto was its role as a speculative investment or gamble. However, the number of crypto owners who view digital assets as a long-term investment has declined from 29% in 2022 to 20% in 2023. This shift indicates a movement away from viewing cryptocurrencies as a viable long-term investment vehicle.
Crypto trading exchanges remain the most common way for Canadians to acquire cryptocurrencies, with 52% of owners using such platforms, consistent with the figures from 2022. However, a higher percentage of individuals reported obtaining crypto assets through decentralized exchanges (DEX) or ATMs in 2023 compared to the previous year. Specifically, 25% acquired their crypto assets through a DEX, up from 18% in 2022, while 15% acquired them through ATMs, compared to 8% in 2022. This indicates a shift towards decentralized methods of acquisition, particularly among the younger demographic.
The pessimism reflected in the survey results may be attributed to the timing of the research when the crypto market was under significant bearish pressure. It is important to note that market conditions can greatly influence public sentiment towards cryptocurrencies. However, the findings also shed light on the general skepticism and diminishing enthusiasm towards crypto investments in Canada.
Resistance to a Digital Loonie
Interestingly, the study also revealed that Canadians do not appear to be keen on a Central Bank Digital Currency (CBDC). A separate survey conducted by the Bank of Canada gathered 89,424 responses from a diverse range of Canadians, and the results showed overwhelming opposition to the central bank’s exploration and issuance of a digital Canadian dollar. Concerns over privacy violations and a preference for existing payment methods were prominent, with 85% of respondents stating that they would not use a digital Canadian dollar.
The OSC’s “Crypto Assets Survey 2023” highlights the declining enthusiasm and shifting perceptions of Canadians towards crypto investments. The decreased ownership, changing reasons for purchasing crypto, and increasing regret among crypto asset owners demonstrate a waning faith in cryptocurrencies as a long-term investment. Additionally, the resistance towards a digital loonie reflects the general skepticism towards embracing digital currencies in Canada. While market conditions play a significant role in shaping public sentiment, the findings suggest that Canadians are becoming more cautious and less optimistic about the future of crypto.