The Central Bank of Canada announced that the proportion of citizens in the country owning bitcoin (BTC) reached 13% in 2021, which is 8% more than in the previous year.
According to the latest report Central Bank, a noticeable increase in the number of owners of cryptocurrencies suggests that access to them has become much easier due to mobile applications and the interest of Canadians in investing in general.
The central bank said that the average amount of BTC an investor now holds is about 500 Canadian dollars ($393). BTC is mainly used by Canadians for investment and much less often as a means of payment due to high fees and high volatility.
The central bank warned that such a sudden price correction meant that investors who own this cryptocurrency could suffer significant losses. Bitcoin and ether (ETH) were four to five times more volatile than the S&P 500 stock market index throughout 2021, the Central Bank states. Meanwhile, the regulator stipulates that the crypto-assets market is not large enough to distinguish any patterns.
The report highlights that the market is growing quite rapidly, with growth outpacing global regulatory efforts, which increases risks. Nevertheless, the Central Bank admits that crypto assets are increasingly integrated into the traditional financial system due to the development of the crypto derivatives market – as investment assets or collateral for loans.
Earlier, the Canadian Central Bank said that cryptocurrencies will not help avoid inflation or replace the Canadian dollar.
Source: Bits
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