Bank of Canada: 90% of Canadians are aware of Bitcoin’s existence

Recent research from the Bank of Canada has uncovered some interesting details regarding the distribution of Bitcoin ownership across the nation. The report found that in 2021, 13% of Canadians held Bitcoin, however, investors with average financial literacy are the least likely to invest in the sector.

According to the central bank’s survey, there was a more than two-fold increase in Bitcoin ownership in 2021 compared to the 5% ownership shown from 2018 to 2020. The expansion of products for buying Bitcoin and big improvements in Canadians’ savings during the pandemic were the main drivers of the surge.

Are Canadians actually aware of Bitcoin?

About 90% of Canadians are currently aware of the existence of Bitcoin. This widespread knowledge echoes the findings of a survey conducted by Grayscale last year, which revealed that 99% of American investors are aware of Bitcoin.

However, the Bank of Canada’s report reveals that a very small portion of the Canadian population is actually familiar with the concept behind Bitcoin. When asked to verify basic statements like “Bitcoin is backed by a government,” (which is false) 40% of poll participants who owned Bitcoin (and 66% who did not) displayed a comparatively low level of knowledge. The share was higher than it had been in previous years, normally below 30%.

Investors’ reasons for buying Bitcoin also depended in part on the timing at which they did so. While long-term holders were more drawn to Bitcoin due to a lack of government trust or as a payment method, post-2019 investors were more likely to be interested in it as a “new technology.”

Unsurprisingly, the majority of Canadians who own Bitcoin weren’t whales. 70% of Bitcoin owners held less than $5,000 CDN in value, compared to a median holding of $500 CDN.

Recently, the Ontario Securities Commission’s CEO Grant Vingoe said that regulations are the key to crypto adoption as more than 30% of Canadians are planning to HODL their crypto holdings while many have decided to enter the sector in the near future.