Consumers’ Awareness, Use and Understanding of Stablecoins

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Cat. No. FC5-101/2025E-PDF (PDF, English)

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Aussi disponible en français sous le titre Sensibilisation, utilisation et compréhension des consommateurs à l’égard des cryptomonnaies stables.

Executive summary

Background

Stablecoins, sometimes called "value-referenced cryptoassets,” are a type of cryptoasset that is meant to maintain a stable value. To try to keep their value stable, stablecoins may be tied to the value of a currency like the U.S. dollar, be backed by other cryptoassets, or use algorithms that trigger purchases and sales in order to maintain a stable value. Stablecoins can be used for various reasons, such as to pay for goods or services, to transfer money, and/or as an investment. At the time of the survey (and as of May 2025), federal and provincial/territorial deposit insurance plans in Canada did not cover stablecoins or other cryptoassets. A cryptoasset trading platform (CTP), depending on how it operates, may be subject to securities regulation under provincial law. Some CTPs claim to be registered businesses, but this is not the same as being registered with a securities regulator.^{Footnote 1}  Using cryptoassets (including stablecoins) may entail risks to consumers, such as exposure to scams, irreversible transactions, unstable values that may rise and fall suddenly, and loss of funds if the crypto trading platform or wallet provider goes out of business or goes bankrupt.

As part of its mandate to protect financial consumers, the Financial Consumer Agency of Canada (FCAC) is legislated to monitor, evaluate and promote awareness of trends and issues that may affect financial consumers in Canada. In this context, FCAC undertook research to explore consumer knowledge, experiences, and perceptions of risk about the use and regulation of stablecoins in Canada. The aim of this research is to generate actionable insights that can be used by regulators, educators, policy makers, and the financial ecosystem at large, to enhance quality financial inclusion, protection and literacy in the service of greater financial well-being for consumers in Canada.

About the research

FCAC contracted the services of Ipsos, a market research company, to field a survey on consumers’ awareness, use and perspectives around stablecoins, which was conducted between December 12, 2023, and January 19, 2024. The survey included 2 samples: a representative sample of the adult population in Canada, and a more targeted non-representative sample of stablecoin users recruited through crypto platform organizations.

The key findings in this report are based on the representative sample. Response frequencies may at times exceed or not add up to 100% due to rounding and the type of questions.

Key findings

Stablecoin ownership

Overall, 4% of respondents reported currently owning stablecoins, while 5% reported previously owning stablecoins. The proportion of respondents who reported currently owning stablecoins was higher among participants who self-identified as men (hereinafter referred to as men), households with a higher income, younger people, and those who identify as Indigenous or Black.

When asked why they had purchased stablecoins, the most common reasons selected by those who currently own stablecoins were: as a new investment (32%), to diversify their portfolio (30%), to exchange them for other cryptoassets (26%), and because they were lower risk than other cryptoassets (23%). Similar reasons were cited by respondents who previously owned stablecoins and those who reported that they had never owned stablecoins but had considered acquiring them.

Consumer knowledge

Respondents had little knowledge about stablecoins. For instance, only 21% of respondents were able to select an accurate definition of stablecoins, which is “a type of cryptoasset meant to maintain a stable value.” The majority of respondents (58%) reported they did not know the definition. In addition, respondents received an average score of 18% on 4 questions aimed at assessing stablecoin knowledge. Notably, when asked how many questions they thought they answered correctly, respondents provided an estimated average score of 50%. The difference between actual and perceived scores (32 percentage points) was statistically significant, demonstrating a pattern of substantial over-confidence.

Consumer experiences

Among previous and current owners, 49% reported having had negative experiences relating to stablecoins, and 10% of respondents reported that they lost their stablecoins because of fraud, a scam, or a hacking incident. Of this group, 77% indicated they lost up to $10,000, and 23% indicated they lost between $10,000 and $60,000.

Perceptions about the regulation of stablecoins

Among all respondents, 41% agreed or strongly agreed that the Government of Canada should adopt a distinct regulatory approach to stablecoins that reflects the difference between these products and other cryptoassets, and which accounts for the unique regulatory challenges they present. 63%^{Footnote 2}  of those who reported currently owning or previously owning stablecoins agreed or strongly agreed that stablecoins should be regulated like other ways of making payments or transferring money^{Footnote 3} . Among those who did not own stablecoins, 44% agreed or strongly agreed that the lack of consumer protection regulation for stablecoins was the primary reason they did not own any stablecoins.

When asked to indicate how likely they would be to consider buying or otherwise acquiring stablecoins, 37%^{Footnote 4}  of all respondents said they would very likely or somewhat likely consider it, if there were a clear, simple and fast process for stablecoin holders to redeem stablecoins for “fiat money” (non-crypto, government-issued currency). Similarly, 36%^{Footnote 5}  indicated they would very likely or somewhat likely consider it if stablecoin owners would get the value of their holdings back even if a crypto company went bankrupt or ceased operations.

Conclusions

The use and prevalence of stablecoins is increasing,^{Footnote 6}  but knowledge about stablecoins remains limited, and a substantial number of consumers believe that stablecoins should be regulated in Canada. This paper serves to enhance earlier research in Canada that looked at cryptoassets more broadly and will inform future policy and financial literacy efforts to strengthen consumers’ protection, inclusion and well-being.

Introduction

Central tenets of the Financial Consumer Agency of Canada's (FCAC) mandate include the protection and education of financial consumers. As part of this, FCAC produces trusted and authoritative research, tools (for example, interactive online tools and calculators) and resources (for example, financial education programs) and develops and implements the National Financial Literacy Strategy of Canada in collaboration with financial ecosystem stakeholders.^{Footnote 7}

In a rapidly evolving and increasingly digital financial ecosystem, FCAC monitors, evaluates and promotes awareness of trends and emerging issues that may have an impact on financial consumers. This research informs:

• policy recommendations aimed at increasing quality financial inclusion while safeguarding and improving outcomes for consumers through consistent protections and market conduct standards, even as products and markets evolve.
• financial literacy content, activities and interventions aimed at helping consumers navigate and benefit from current and evolving financial landscapes.

Digital assets such as cryptocurrencies—which include stablecoins—may present opportunities within the financial ecosystem, but they also present risks to consumers. Stablecoins, sometimes called “value-referenced cryptoassets,” are a type of cryptoasset meant to maintain a stable value. To achieve this stability, stablecoins may be tied to the value of a currency such as the U.S. dollar, be backed by other cryptoassets or a commodity such as gold, or use algorithms that trigger purchases and sales to keep their value stable. Stablecoins can be used for various purposes such as payment for goods or services, to transfer money, and/or as an investment.

Several jurisdictions, such as the European Union, Singapore, and Hong Kong, have adopted a regulatory framework for stablecoins. At the time of the survey (and as of May 2025), federal and provincial/territorial deposit insurance plans do not cover cryptoassets, including stablecoins in Canada. Among other risks to consumers, using cryptoassets (including stablecoins) may involve exposure to fraud, irreversible transactions, unstable values that may rise and fall suddenly, loss of funds if the crypto trading platform or wallet provider goes out of business or goes bankrupt, etc.

To address potential risks to consumer protection and the federally regulated financial system, in 2022 FCAC issued a joint statement^{Footnote 8}  with the Office of the Superintendent of Financial Institutions (OSFI) and the Canada Deposit Insurance Corporation (CDIC) to all regulated entities that carry out crypto-related services or engage in crypto-asset activities. The statement supports the “same activity, same risk, same regulation” principle endorsed by the Financial Stability Board, and indicates that “digital assets such as cryptocurrencies and stablecoin arrangements, as well as decentralized finance applications, require prudent and thoughtful oversight and regulatory approaches, since innovations occur both within and outside of the mainstream financial system, sometimes both simultaneously.”

In this evolving context, there is a need to better understand consumer use, knowledge, experiences and perceptions of risk and regulation(s) associated with stablecoins. In addition to advancing consumer protection, a better understanding of consumers’ interactions with stablecoins can lead to more targeted and effective interventions and information for consumers. To that end, FCAC conducted a public opinion research (POR) survey to examine consumers’ awareness, use, and understanding of stablecoins and their regulation in Canada. This report presents key findings from the survey.

Research methodology

The survey (conducted between December 12, 2023, and January 19, 2024) included 2 samples of Canadians 18 years of age or older: a representative sample of the adult population in Canada (2,410 people including 386 stablecoin owners) and a more targeted non-representative sample of stablecoin users recruited through crypto platform organizations (221 crypto platform users in Canada, including 114 current stablecoin owners).

Oversampling of stablecoin owners was included in the design of the representative sample to ensure sufficient sample sizes for analysis. Weighting was applied to this sample to ensure that the final data reflect the general adult population by region, age, and gender according to the 2021 Census. A random iterative method (RIM) technique was applied for weighting. The sample recruited through crypto platform organizations was not weighted as it is non-representative in nature.

The survey was conducted in English and French, with respondents invited to complete the survey in either official language. The survey covered general awareness of stablecoins, stablecoin ownership and usage, attitudes about stablecoins, and expectations about stablecoin regulation and consumer protection. For a full description of the survey methodology and data tables, please refer to Library and Archives Canada.

In this report, any differences in question response frequencies reported across demographic groups are statistically significant at the 95% confidence level unless stated otherwise. See Appendix A for a summary table of the sample demographics.

Results

Stablecoin ownership

Overall, 4% of respondents reported currently owning stablecoins, while 5% reported previously owning stablecoins, and 91% never owned stablecoins. Nearly 1/3 (32%) of those who reported never owning stablecoins had considered buying or acquiring stablecoins.^{Footnote 9} 

Stablecoin ownership was higher among the following groups:

• men (6%, or 66 out of 1175 men compared to 4%, or 28 out of 1224 participants who self-identified as women (hereafter referred to as women))
• households with an annual income greater than $100,000 ($100k+: 7% or 36 out of  525; $60k < $100k: 4% or 28 out of 631; $40k < $60k: 4% or 15 out of 416; < $40k: 2% or 14 out of 646)
• younger people (18–34: 8% or 51 out of 638; 35-54: 5% or 37 out of 780; 55+: 1% or 8 out of 993), and;
• those who identified as Indigenous (16% or 19 out of 123, compared to 3% or 77 out of 2287 non-Indigenous) or Black (9% or 10 out of 118, compared to 4% or 60 out of 1697 who identified as white)

When asked to indicate their reasons for purchasing stablecoins, current stablecoin owners selected the following reasons more commonly: as a new investment (32%), to diversify their portfolio (30%), to exchange them for other cryptoassets (26%) and seeing them as lower risk than other cryptoassets (23%).

Among previous owners (those who reported that they used to own stablecoins but no longer own them), similar reasons were selected, the most common being that stablecoins are perceived to be less volatile than other cryptoassets (27%), to exchange them for other cryptoassets (27%), as a new investment (26%), to earn money (yield) from lending the stablecoin (24%), to diversify their portfolio (22%) and to pay for goods and services (20%).

Consumer knowledge

As noted above, this research endeavoured to establish an understanding of consumer knowledge related to stablecoins. Overall, it found that respondents had little knowledge of stablecoins (see Appendix B for survey questions). For instance, when asked to select the most accurate definition of the word “stablecoins,” only 2 in 10 (21%) respondents selected the accurate definition, which is “a type of cryptoasset meant to maintain a stable value.” Over half of respondents (58%) reported they did not know the definition. On the 4 other specific stablecoin knowledge questions, respondents received an actual average score of 18%. However, when asked how many questions they thought they answered correctly, on average, respondents provided an estimate of 50%. This difference^{Footnote 10}  between respondents’ actual and perceived knowledge of stablecoins was statistically significant, with respondents substantially over-estimating their knowledge of stablecoins.

Figure 1. Respondents over-estimated their knowledge of stablecoins

Respondents had very little knowledge about the several types of stablecoins in existence, the possibility of redeeming or exchanging stablecoins, the lack of deposit insurance on stablecoin holdings, and types of risks related to owning stablecoins. For example:

• Only 1% of respondents correctly selected all the types of stablecoins that are currently available.
• Only 5% of respondents knew it was false that they could “at any time redeem/exchange their stablecoins for “fiat” currency.
• Only 16% of respondents knew it was false that "stablecoin holdings are insured by the Canada Deposit Insurance Corporation and provincial deposit insurers.”

The proportion of respondents who answered correctly was generally higher among current and previous owners (compared with those who had never owned stablecoins), men, younger Canadians (in particular those aged 18–34), higher income households, those with more formal education, those not born in Canada, and those who identified as South Asian, Arab, Black, or Chinese.

Consumer experiences

When previous and current owners were asked if they had any negative experiences related to owning or purchasing stablecoins, roughly half (49%) answered in the affirmative.^{Footnote 11}  Among this group, no one issue was particularly prevalent: the negative experiences reported included stablecoins collapsing and losing all their value (12%) and becoming a victim of a fraud or a hacking incident (10%), trading being halted by a crypto platform, etc. (see Figure 2 for a complete list of issues).

A correlation analysis suggested that awareness of how to protect stablecoins against fraud was not associated with a decreased likelihood of being a victim of fraud, i.e., awareness alone is not sufficient for preventing fraud. This may be due to a number of reasons, such as:

• people may be aware of how to protect their stablecoin but may not apply that knowledge in practice
• people may be taking actions to protect themselves and still falling victim to fraud
• mechanisms for fraud protection may not be robust enough to counter fraudsters despite consumer awareness of fraud

Figure 2. Current and previous stablecoin owners experienced a range of negative experiences

Of those who reported that they lost their stablecoin or cash because of fraud, a scam, or a hacking incident, roughly 8 in 10 (77%) reported they lost up to $10,000, and roughly 2 in 10 (23%) reported losing between $10,000 and $60,000. Overall, the percentage of respondents who lost an amount due to fraud appeared to decrease as the amount lost increased (see Figure 3).

A similar pattern was observed among those who lost funds specifically due to the collapse of a crypto trading platform. Of those who reported they were affected by the collapse of a crypto trading platform, 72% had lost up to $10,000, and 26% had lost more than $10,000. Meanwhile, 70% of those who had lost funds reported they were able to recover some of what they had lost. Notably, 72% reported they still own stablecoins, plausibly highlighting a high “risk appetite”.

Figure 3. Among respondents with negative experiences, the percentage of respondents who lost an amount due to fraud appeared to decrease as the amount lost increased

Perceptions about the regulation of stablecoins

The regulation of stablecoins may present unique challenges given that stablecoins are not used solely as a means of payment but also as a form of investment. Payment activities are typically subject to federal regulation, whereas investments or securities are subject to regulation under provincial laws. While some crypto trading platforms—including those on which stablecoins trade—may be subject to securities regulation under provincial laws, depending on the provinces at the time of the survey (and as of May 2025), the landscape remains very uneven.

All respondents were asked to indicate whether stablecoins are currently regulated in Canada. The majority of respondents (58%) selected “I don’t know” as a response to this question. Those who said “yes” (14% of all respondents) were asked to select from a list who they think is responsible for regulating stablecoins in Canada. Of this group, 30% selected the Bank of Canada, 29% selected the Financial Consumer Agency of Canada, 27% selected the Financial Transactions and Reports Analysis Centre of Canada, and 23% selected provincial securities regulators. A smaller number of respondents thought it was provincial consumer protection departments (14%) or the Office of the Superintendent of Financial Institutions (14%), while 12% selected “don’t know.”

Figure 4. The majority of respondents did not know whether stablecoins were currently regulated in Canada.^{Footnote 12}

Views on consumer protection and regulation of stablecoin

Survey respondents’ views on stablecoin regulation did not differ significantly based on their stablecoin knowledge level.

Among all respondents, 41% agreed or strongly agreed that the Government of Canada (GC) should adopt a distinct regulatory approach to stablecoins that reflects the difference between stablecoins and other cryptoassets, and which accounts for the unique regulatory challenges stablecoins present.

Among those who did not own stablecoins, 44% agreed or strongly agreed that the lack of consumer protection regulation for stablecoins was the primary reason they did not own or hold any stablecoins.

Among current and previous stablecoin owners, the majority (60% of current owners and 69% of previous owners) agreed or strongly agreed that the Government of Canada should adopt a distinct regulatory approach for stablecoins. On the other hand, roughly half of owners (50% of current owners and 46% of previous owners) agreed or strongly agreed that the status quo should be maintained.^{Footnote 13 , Footnote 14} 

Further analyses suggested that there was a relationship between acquiring stablecoins for payment purposes and endorsing the view that the Government of Canada should adopt a distinct regulatory approach to stablecoins that reflects the difference between stablecoins and other cryptoassets.

Specifically, analyses showed that previous and current owners who reported acquiring stablecoins to pay for goods or services, compared to those who did not select such a statement, were 19 times more likely to agree that the Government of Canada should adopt a distinct regulatory approach to stablecoins.^{Footnote 15} 

Figure 5. Views on stablecoin regulation in Canada among all survey respondents^{Footnote 16} 

When asked about consumer protections and other features, about a third of respondents said they would consider buying or otherwise acquiring stablecoins if there were a clear, simple and fast process for stablecoin holders to redeem stablecoin for fiat money (37%) and if stablecoin owners could get the value of their holdings back even if a crypto company went bankrupt or ceased operations (36%). See Figure 6 for a complete list.

Figure 6. Views among all survey respondents^{Footnote 17}  on conditions to consider buying or acquiring stablecoins

Key observations and conclusions

Digital assets such as cryptocurrencies and stablecoins may present opportunities within the financial ecosystem, but they also present risks. FCAC undertook this research to explore consumer knowledge, experiences and perceptions of risk about the use and regulation of stablecoins in Canada. This is particularly important in the current context where cryptocurrencies are gaining prominence in Canada and around the world. In early 2025, for example, cryptocurrencies gained considerable attention in the news in the context of the U.S. election. As outlined below, the findings of the present research reinforce the need for consumer protection measures governing stablecoins in Canada, complemented by consumer education about them.

Stablecoin use patterns and owners’ experiences

While earlier research conducted in Canada looked at cryptoassets more broadly,^{Footnote 18}  the findings of this survey complement previous research by documenting more specifically Canadians' awareness, use and understanding of stablecoins and their regulation. Fewer than 1 in 10 Canadians currently own or have previously owned stablecoins, with ownership being higher among particular subgroups of consumers, including men, younger people, those from households with higher incomes, and those who identified as Indigenous or Black. FCAC’s findings are consistent overall with earlier research by the Ontario Securities Commission (OSC) that looked at crypto-assets more broadly, and showed that 10% of Canadians owned crypto-assets in 2023, with rates of ownership being higher among men, individuals who were 25–44 years old, and in higher-income households.

The present research also shows that the most common reasons for purchasing or acquiring stablecoins were as a new investment, to diversify a portfolio, to exchange stablecoins for other cryptoassets, and seeing stablecoins as lower risk^{Footnote 19}  than other cryptoassets. Previous research documented similar trends. For instance, respondents in the 2023 OSC research selected the following reasons for purchasing stablecoins: less volatile than cryptocurrencies (35%), easier to make payments (35%), to diversify investment portfolios (33%) and as a new investment (33%).

The lack of consumer protection regulations had a significant effect on both the likelihood of purchasing stablecoins and negative experience associated with ownership.

• Among those who have never owned stablecoins, roughly half indicated that lack of regulation and consumer protections for stablecoins (and cryptoassets more broadly) were the primary reason they did not own any stablecoins. More respondents would consider buying or acquiring stablecoins if there were greater consumer protections.
• Roughly half of previous and current owners had had negative experiences with owning stablecoins, including losing funds due to the collapse of a stablecoin platform, fraud, or a hacking incident.

Consumer education

Increased consumer awareness and education across the ecosystem would complement consumer protection. Overall, the results of the present survey showed there was little knowledge about stablecoins and low awareness about regulatory oversight related to the use of stablecoins in Canada. At the same time, respondents over-estimated their knowledge about stablecoins, and this over-confidence was observed even among stablecoin owners. This finding underscores the need for reliable and unbiased resources and tools that can advance consumer knowledge of stablecoins. That said, this research also shows that awareness alone is not sufficient for preventing fraud, and highlights the need for the financial ecosystem to develop robust measures to protect consumers.

Looking ahead

As technology evolves and the financial sector becomes increasingly digital, FCAC will continue to leverage its research and analysis to identify, measure and report on emerging trends and issues affecting financial consumers in Canada, with the aim of providing the financial ecosystem with actionable insights to improve quality financial inclusion, protection, literacy and well-being.

Appendix A: Sample demographic statistics

Appendix B: Stablecoin knowledge questions