In a survey conducted by tech vendor Capterra, it appears that public favour concerning cryptocurrencies is growing. Although few Canadian businesses accept payment in such digital currencies, at least 25% of respondents confirmed currently dealing in crypto, while another 37% indicated plans to use them soon.
The survey also found that 62% of people were interested in receiving payment in cryptocurrency in the next five years. Of those already trading in crypto, 58% began using them during the pandemic as a result of having more time to learn about digital currencies. About a third of crypto owners were 18-22 years old, with 41% being 23-35 years of age. This indicates that the majority of users are the younger demographic as just 21% of 36-55-year-olds and 8% of 56-65-year-olds confirm having invested.
Figures also indicate that there is more investment in cryptocurrency amongst men than women. 66% of those that confirmed using crypto were men, compared to just 34% of women. All this despite the survey being made up of equal parts male and female respondents. The forthcoming landscape may however alter as 55% of female respondents confirmed plans to start using cryptocurrencies in the future, compared to just 45% of men doing the same.
The study however found that there was some hesitancy over crypto use. Concerns raised included a lack of knowledge concerning digital assets and market fluctuations in value. Some also indicated fears of the currencies disappearing due to such actions as governments declaring them illegal.
According to analyst Tessa Anaya, there is still uncertainty as to the future of crypto in Canada. While these digital currencies can be used to buy and sell goods and services online, small and medium-sized businesses considering this option are being advised to tread carefully. Bitcoin was the first cryptocurrency launched about 13 years ago and has yet to achieve mainstream use. The currency is also decentralized and under no government regulation.
Anaya is recommending any businesses considering this form of payment utilizes financial risk management software. She noted that this technology could help measure the risk of making decisions involving cryptocurrencies.
The Canada Revenue Agency (CRA) has also advised business taxpayers that cryptocurrency payments must be declared as business income. Those just investing should also be aware that capital gains tax may apply. To mitigate the risk of devaluation that could occur given the volatile nature of cryptocurrencies, Michael Wong of the Chartered Professional Accountants of Canada is advising small businesses accepting such payments to use a crypto payment processor immediately to convert the monies into fiat currency.
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