A Guide For Startups: How Has Crypto Been Accepted Amongst Canada’s Population?

‘Crypto’, or ‘Cryptocurrency’, similarly to AI (Artificial Intelligence), is one of the words of the moment. But whilst it sits on the tip of everyone’s tongues and holds a core space in this generation’s zeitgeist, what does it all actually mean? For startup businesses in Canada, and across the world for that matter, it’s important to have a grasp of emerging fields like crypto and AI so that you can stay tapped into the conversation and, if you can, use these to your benefit as a small and growing business. This is therefore a guide to introduce you to crypto and how it has disseminated into different areas of Canadian culture so far. This should hopefully spark an interest to go ahead with some deeper research into it all, if you have the time as a busy startup, that is.

Over the previous decade and a half, new digital payment systems based on the blockchain technology emerged and came to be seen as an important step forward. We are talking about the crypto sector of course, and more specifically we will look into its rates of adoption and market penetration in Canada. 

Crypto currencies like Bitcoin, Ethereum, or Tether and now well-known among the younger generation and even older Canadians have at least heard of them. Not everyone is buying the hype, and many people are still suspicious towards a system that ignores the banks and guarantees payments based on a digital ledger. This is an ongoing process, so it’s very interesting to check where things stand now as crypto currencies are bouncing back after a period of dropping values and negative media coverage.

Numbers and Stats: Do Canadians Use Crypto?

Based on the available statistics from 2022 and 2023, the adoption of crypto currencies in Canada is showing modest signs of progress. The country ranks in the top 20 in the world in total volume of crypto transactions and has improved its ranking slightly over the past couple of years advancing from 31^st in 2021 to 19^th in 2023. However, most of that volume comes from people buying crypto as a store of value – around 31% of Canadians said they are considering such a move.

On the other hand, daily use of crypto for payments remains very limited. Less than 3% of Canadian citizens have paid for anything from a crypto wallet. It is somewhat surprising that the figure remains so low in light of the fact that Canada has excellent infrastructure in place. Its network of crypto ATM’s accounts for over 7% of all such machines in the world and is the second largest globally right after the US. The reluctance of Canadians to use crypto has nothing to do with technical capacities, and must be explained through other factors, possibly a conservative attitude about financial matters.

Most Popular Crypto Currencies in Canada

Since the Canadian crypto market has its own trends, it’s interesting to analyse which coins are the most widely used in the country. Unsurprisingly, Bitcoin tops the list as the oldest crypto has by far the best brand recognition and is accepted by more vendors than all the other coins combined. Global adoption of Bitcoin is far ahead of any competitors and the same is the case in Canada.

The rest of the list is less typical, showing that the Canadian crypto market has its own flair. Ripple rates higher than in most other countries and is the second most trusted cryptocurrency in Canada right now, ahead of Ethereum or Solana which are quite popular internationally. There is also strong interest in so called ‘meme coins’ like Dogecoin or Shiba Inu, which have dubious utility value and are viewed primarily as hype-based digital assets. There are dozens of other coins that some Canadian users occasionally acquire, but they typically have very limited value for any kinds of payments. 

Common Outlets for Crypto Use

One reason why Canadians are somewhat hesitant to pay with crypto is the relative scarcity of vendors who are willing to process such payments. Major retail companies are increasingly opening up to this possibility, so you can buy fashion or sportswear items with Bitcoin. In major cities like Toronto or Vancouver it is now possible to pay for movie theatre tickets or meals in some restaurants with digital assets, although the number of venues that allow this is still not huge.

Crypto is more commonly used to facilitate online payments, both locally and internationally. Canadians often use crypto currencies to send and receive money from another country or pay for remotely delivered services. Online gambling sites are also embracing crypto currencies with open arms, and this is a sector where the use of crypto is becoming widely accepted. Recent growth of the online slots industry in Canada thus opens up additional space for everyday use of crypto payments. Canadian slots online could be increasingly available to play using crypto in the coming years.

Is Canada a Promising Market for Crypto Mining and Trading?

As we previously explained, Canada is an important crypto market that has a lot of potential for further growth. In particular, the North American nation is a big player when it comes to producing crypto coins, as it currently ranks fourth on the list of the biggest mining countries for Bitcoin. Thanks to its ample supply of sustainable energy, Canada could expand its mining capacity and potentially assume an even more essential role in this field.

In terms of trading activity, Canada lags behind the most vibrant markets. Local citizens tend to be a bit less adventurous when they come to investments than Americans, so many of them are spooked by the boom and bust cycle typical for many crypto products. This is why retail use is so important, as it introduces crypto to new users who could potentially become long-term investors. As more and more vendors and online service providers start accepting crypto payments, we can expect that regular Canadians will warm up to the idea of digital money.