The new digital economy: How Canadians are actually using crypto
Most Canadians have heard of cryptocurrency, but far fewer are actually using it. According to a 2023 Bank of Canada report, 90% of Canadians are aware of bitcoin (BTC), but only about 10% own any. And among those who do, the median investment amount is quite small—just $500.
That gap between awareness and adoption suggests crypto is still early in its journey. For some Canadians, it’s an exciting new frontier in finance. For others, it can feel complicated and daunting, with confusion about how and where to begin. Platforms like Coinbase are aiming to make that first step easier, with tools designed to help beginners buy, sell, and learn more about crypto.
While crypto comes with real risks—including market swings and evolving regulations—it’s also becoming more practical. Canadians are using it as part of a diversified investment portfolio, for sending money abroad, and even for everyday spending.
Crypto as part of a diversified portfolio
Diversification, or spreading your investments across different asset types, is a core investing principle. Traditionally, this has meant a mix of real estate, stocks, and fixed income like bonds or GICs. Recently, though, cryptocurrency has started to enter that mix.
While crypto is increasingly part of investment strategies for retail and institutional investors alike, it is important that people make individualised choices based on their own time horizon and risk tolerance. Cryptocurrencies can be unpredictable and volatile. There are numerous approaches you can take, from direct ownership of an asset like Bitcoin to exposure through regulated investment vehicles like ETPs and ETFs.
For Canadians interested in getting started, regulated platforms like Coinbase offer access to major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). Beginners often choose to stick with larger, more established coins at first.
Here’s a simple example of what a diversified portfolio might look like with a small crypto allocation (for illustration only, 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 isn’t just about investing—it’s also being used to move money, and this is where stablecoins enter the scene.
Stablecoins are blockchain-based digital tokens (cryptocurrencies) that are pegged to an underlying national currency or real asset—most popularly, the U.S. dollar. For example, USD Coin (USDC) is pegged to the U.S. dollar, which means that one USDC is intended to stay close to one USD.
In Canada, stablecoins are also starting to move into more regulated territory. The federal government has passed rules to provide clearer oversight for these digital assets, and companies are working on Canadian-dollar–backed stablecoins with support from traditional financial institutions.
Using stablecoins, Canadians can send money internationally, often much faster than traditional bank transfers. In some cases, transfers between users on the same platform can happen almost instantly. Here’s how it works:
- Convert Canadian dollars to a stablecoin like USDC
- Send it to a recipient abroad
- The recipient converts it into their local currency and withdraws it
Fees can apply at each step, and they vary by platform. It’s also important to understand the tax and regulatory rules in both countries before sending funds this way.
Paying with cryptocurrencies
While less common, it’s possible to use crypto to pay for everyday purchases. Some platforms allow users to buy gift cards for popular retailers using cryptocurrency. Others offer crypto-linked debit cards that automatically convert crypto into Canadian dollars at the time of purchase.
While this mode of using crypto is available to Canadians, it isn’t yet very popular. Many investors prefer to hold onto their crypto rather than spend it.
The bottom line
Crypto is still evolving, and it may not be the right fit for every investor. But for Canadians who are curious and willing to learn, it’s becoming an increasingly accessible part of the financial landscape.
As with any investment, it’s important to understand the risks, and to only invest money you can afford to lose. For those ready to explore, platforms like Coinbase can be a starting point.
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.
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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
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