BoC says bitcoin primarily attracts speculators

Bitcoin ownership in Canada has doubled since pre-pandemic levels but remains relatively low, with most buyers being young speculators, according to a new report from the Bank of Canada. Blacklock's Reporter says researchers found that 44% of bitcoin owners cited spending as their primary reason for holding the cryptocurrency, while 21% were drawn to its technology.“For former bitcoin owners, the primary reason for selling their holdings was cashing out for a profit, followed by distrust in private digital currencies and losses incurred due to high volatility,” the report stated. Researchers also noted that most owners rarely use bitcoin for everyday Bank of Canada, which maintains a monopoly on printing banknotes, has tracked bitcoin’s rise since its 2009 introduction. Despite public claims of having no interest in digital currency, the bank trademarked a “digital Canadian dollar” in the pandemic, bitcoin ownership averaged 5% in Canada, peaking at 13% in 2021. The latest survey found 10% of Canadians currently own bitcoin, primarily young men under 34 with university degrees, earning more than $70,000 a year, and living in British Columbia or 93% of Canadians have heard of bitcoin, many remain unfamiliar with its core features. The report found that most bitcoin owners see it as a speculative asset rather than a practical means of payment. The median bitcoin holding among Canadians is valued at $ a separate 2023 report, Unmet Payment Needs And A Central Bank Digital Currency, the Bank of Canada questioned the need for cryptocurrency, noting that most Canadians already have access to multiple payment methods. It suggested that widespread adoption of a digital dollar would require significant spending by the central study also highlighted a reluctance among some Canadians to embrace digital transactions, with 11% refusing to bank online and 16% avoiding online shopping. While the bank acknowledged uncertainty over whether a digital dollar would be necessary, it stated that any decision to introduce one would ultimately rest with Parliament.