How Canadians Are Using Crypto in the New Digital Economy

Most Canadians have heard of cryptocurrency, but far fewer actually use it. A 2023 Bank of Canada report found that about 90% of Canadians are aware of bitcoin (BTC), while only roughly 10% own any crypto, and among those owners the median holding is small—around $500. That gap between awareness and ownership shows that crypto remains at an early stage of mainstream adoption in Canada.

For some people, cryptocurrencies represent an exciting new part of the financial landscape. For others, the space can feel complicated, with uncertainty about how to get started, how to stay secure, and what role crypto should play in a broader financial plan. Regulated exchanges and custodial platforms aim to simplify that first step by offering tools for buying, selling and learning about digital assets, as well as basic custodial protections and educational resources.

It’s important to remember that crypto carries real risks: price volatility, evolving regulation, and security considerations are all part of the picture. At the same time, cryptocurrencies are increasingly used for practical purposes beyond speculation—by some Canadians as a small part of a diversified portfolio, by others to move funds internationally, and by a smaller number who use crypto for everyday purchases.

Crypto as part of a diversified portfolio

Diversification—spreading savings across a mix of asset classes—is a central investing principle. Traditionally that mix includes real estate, Canadian and global equities, and fixed-income products such as bonds or GICs. Increasingly, some investors include a modest crypto allocation to gain exposure to a technology-driven asset class that behaves differently from stocks and bonds.

Cryptocurrencies are known for their price swings, so any allocation should be matched to an individual’s time horizon and risk tolerance. People can gain exposure in several ways: directly holding established coins such as Bitcoin (BTC) or Ethereum (ETH); using regulated investment vehicles like exchange-traded products (ETPs) or ETFs where available; or investing through funds and similar instruments. Each approach has trade-offs for custody, fees, taxes and liquidity.

For Canadians beginning to explore crypto, regulated platforms can provide access to major, well-known coins and offer user-friendly onboarding. Many beginners choose to start with larger-cap coins that have longer track records. The example below illustrates how a conservative, diversified portfolio might include a small crypto slice—this is illustrative only and not investment advice:

Asset class	Strategic allocation
Canadian equity	40%
U.S. equity	30%
Global equity (ex-US)	25%
Bitcoin (BTC)	5%

Faster cross-border payments with stablecoins

Crypto’s use case extends beyond investing. Stablecoins—tokens designed to hold value relative to a fiat currency or asset—have become a practical method for moving funds more quickly in some situations. A well-known example is USD Coin (USDC), which aims to track the U.S. dollar so that one USDC remains close in value to one USD.

In Canada, regulators have been clarifying how digital assets fit into the existing financial framework, and work is underway on Canadian-dollar–backed stablecoins supported by traditional institutions. Stablecoins can speed up international transfers because blockchain settlements can occur 24/7 and, when both parties use the same platform, transfers can be near-instant. A typical flow looks like this:

• Convert Canadian dollars into a stablecoin such as USDC;
• Send the stablecoin to a recipient abroad;
• The recipient converts the stablecoin into their local currency and withdraws funds.

Fees may apply at each stage and vary by provider, and it’s important to consider both the platform’s terms and the tax and regulatory implications in each jurisdiction before transferring funds this way.

Paying with cryptocurrencies

Using crypto for everyday purchases is possible but not yet widespread in Canada. Some services let users buy gift cards or make purchases directly with crypto, while crypto-linked debit cards convert digital assets into Canadian dollars at the point of sale. These options can be convenient, but many owners prefer to hold crypto for the long term rather than spend it.

Those who do use crypto for payments should be aware of potential conversion fees, merchant acceptance, and the tax treatment of any spend that triggers a taxable event. Practical considerations—like the ease of converting crypto to local currency and card network acceptance—often influence whether crypto becomes a regular payment method.

The bottom line

Cryptocurrency is still evolving and may not suit every investor or user. For Canadians curious about crypto, a cautious, informed approach is sensible: learn the basics, understand the risks, and consider starting with a small, well-considered allocation if you choose to invest. Regulated platforms can offer a straightforward entry point and resources to help newcomers, but it’s always wise to verify the platform’s credentials, custody arrangements, fees and tax reporting options.

As with any financial decision, only invest funds you can afford to lose, and consider seeking professional advice for tailored guidance. For Canadians ready to explore, crypto represents a growing and sometimes useful component of broader financial planning.

^{Information is provided for informational purposes only and is not investment advice. This is not a recommendation to buy or sell a particular digital asset or to employ a particular investment strategy. Coinbase Canada, Inc. is registered as a Restricted Dealer in all provinces and territories of Canada. Trading in crypto assets may result in the loss of invested capital. Past performance is not indicative of future results.}

Read more about crypto:

• Is this the right time to buy Bitcoin?
• How is cryptocurrency taxed in Canada?
• How stablecoins could modernize Canada’s financial system
• Inside Canada’s stalled crypto tax crackdown