Even some cryptocurrency enthusiasts may not be aware of the integral role Canada has played in the growth and development of crypto. For starters, the first Bitcoin exchange-traded funds anywhere in the world happened in Canada. The Great White North is also the birthplace of Ethereum, which is one of the most prominent cryptocurrencies.
However, crypto hasn’t blossomed in Canada quite as much as it has in the U.S. and other nations. The Canadian government has put tight regulations on crypto trading to make sure it remains safe and transparent. Canada is also yet to recognize cryptocurrencies as a form of legal tender while also leaving it up to individual provinces to oversee crypto activity.
In Canada, cryptocurrency usage has seen steady growth in recent years, but it’s yet to experience a big boom. According to a Crypto Adoption report from 2022, Canada’s crypto adoption rate is around 10%, which ranks 20th out of 26 countries surveyed. Of course, this indicates that are is still a lot of room for crypto growth in Canada. More importantly, there are signs that such growth could be coming soon.
The Right Demographics
It’s no secret that younger demographics are leading the crypto craze in all corners of the world. This is particularly helpful for Canada with its population of Millenials and Generation Z. While Millenials make up the largest group of crypto owners in Canada, members of Generation Z had the highest number of crypto transactions in 2024. This is a sign that both generations are starting to lean heavily toward crypto. Over time, as those younger generations gain the disposable income needed to make investments, the number of crypto users – as well as the volume of crypto transactions – should grow at a faster rate.
Keeping Up with the Jones
The 2024 U.S. presidential election has been considered a big win for the crypto community. The crypto industry donated millions to candidates and the results of the election have given supporters of digital currencies more influence than ever in the American government. This success will encourage crypto advocacy groups to pursue similar success in Canada. Of course, gaining influence within the Canadian government won’t be easy. However, there is a growing grassroots movement of cryptocurrency advocacy in Canada, which is promising for crypto’s future in Canada.
Growing Use Cases
The future of crypto in Canada is also bright because of the growing amount of use cases. For example, more Canadian retailers are jumping on the bandwagon to accept cryptocurrencies as payment. At the same time, some platforms are allowing Canadians to pay their bills using crypto. Thus, Canadians are starting to view the convenience that crypto transactions can offer.
Likewise, many digital platforms are offering crypto as a viable method for financial transactions, most notably online casinos, which have exploded in popularity in a few short years. For example, many online casinos in Quebec are trying to attract new customers and stay ahead of the competition by supporting crypto payments. This is a trend that can be found in other industries as well. The more Canadian businesses in a variety of industries are willing to accept cryptocurrencies as payment, the more comfortable consumers will become in giving crypto a chance. Regardless of how quickly the Canadian government adopts a more crypto-friendly approach, crypto in Canada appears set for consumer-led growth over the next few years.
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