Cryptocurrency ownership in Canada saw a noticeable decline last year. The downfall is reported to be due to stringent regulations and the plummeting market prices, as disclosed in a study recently published by the Bank of Canada (BOC).
The Bitcoin Omnibus Survey (BTCOS), annually conducted by the BOC, revealed a slide back from the significant expansion of cryptocurrency ownership registered in 2021. Incidentally, a mid-2022 survey indicated that Bitcoin ownership within Canada decreased to 9% by August, showing a marginal rise to approximately 10% towards the close of the year.
Contrary to expectations, this decline in Bitcoin ownership did not denote a transition of investments from Bitcoin to other cryptocurrencies. Instead, as the report states, a drop in the ownership of alternative coins was observed as well. Demonstrating this, over one-third of the 4,996 respondents in the BOC survey pointed out that their biggest motivation behind Bitcoin interest was purely investment-oriented.
Crypto acquisition amongst Canadians predominantly occurred via mobile and web applications with crypto mining trailing as the third leading methodology of accumulating tokens for two consecutive years. Within the altcoin system, Dogecoin, stimulated by an Elon Musk generated hype, emerged as a favored investment. Bitcoin Cash, Ether, and Litecoin joined the ranks as popular alternatives for Canadians.
The BOC research’s relevance expands to the monitoring of two conditions, which could justify issuing an in-house central bank digital currency (CBDC). The study emphasized ecosystem collapses, regulatory challenges, and price depreciation as contributing factors to the reduction in crypto ownership.
However, acknowledgment of the Canadian government’s intent to provide regulatory clarity paired with the promise of a stable market hints at potential improvement in the regional crypto ownership scenario.
Yet, there is a slight undercurrent of hesitation. An increased focus on regulations coupled with fluctuating market conditions can deter enthusiasts and investors alike. Meanwhile, others harbor the belief that regulatory clarity can provide a framework for smoother functioning and enhanced security in the crypto-sphere.
Therefore, as we move forward, the decisive factor will inevitably hinge on the balance between the need for regulatory guidelines and the freedom of operations within this innovative, decentralized financial landscape.
Source: Cointelegraph
