Canada’s central bank published a survey report, stating that despite most Canadians are relatively knowledgeable about basic finance and cryptocurrencies like Bitcoin, a limited number of them possess digital assets.
Bank of Canada published its 2019 Cash Alternative Survey in August 2020, showing that financial literacy among Canadians positively affects awareness, but it is negatively associated with actual ownership of cryptocurrencies.
Financial literacy, according to Canada’s national bank, is the basic understanding of saving and investment. The survey found out that almost half of the Canadians have a high financial literacy level, while 18% have a low level. The results also show that people with low financial literacy are twice more likely to invest in crypto assets than financially savvy Canadians.
According to the national bank, “93 percent of Canadians with high financial literacy are aware of cryptocurrencies, as opposed to only 72 percent of those with low financial literacy.”
Bank of Canada also noted that “conversely, 8 percent of those with low financial literacy reported they own cryptocurrencies compared with 4 percent of Canadians with high financial literacy.” The financial institution stated that ownership of crypto assets and overall awareness is highest among young, male, university-educated or high-income Canadians.
However, one of the reasons behind many investors still staying away from the crypto sector is the lack of crypto literacy. A survey from 2018 reveals that 44% of online investors reported that a lack of proper knowledge about cryptocurrencies is the main reason why they are not participating in crypto trading. Grayscale conducted a similar survey, finding out U.S. investors would be more likely to invest in Bitcoin if they had the educational resources about the world’s leading cryptocurrency.
Тhe release of the survey coincides with the legal approval from regulators on launching Canada`s first fully-regulated crypto exchange. The approval was received on 7th August 2020 from Canadian Securities Administration (CSA). The exchange went public on September 22, with an initial support of Bitcoin and Ethereum.
Prior the approval, Canadians had to join a waiting list and wait for an invitation to start using the trading platform. The exchange announced it will not store any assets in none hot or cold wallets. In addition, all custodial services of the exchange will be provided by Gemini.