After a series of high-profile meltdowns and the ensuing regulatory heat in their wake, if you thought the crypto saga had hit a roadblock, you can’t be wrong. However, a new investigation from Paxos, the New York-based blockchain technology company, offers a new twist to the story.
It indicates that 75% of consumers are confident about the future of cryptocurrencies.
Neither discouraged nor discouraged
No less than 72% of respondents from Paxos Cryptocurrency Adoption and Buying Behavior Survey claimed that they were not concerned about the volatility seen in the crypto market in 2022.
Consumer trust in intermediaries such as crypto exchanges, mobile payment apps, and banks for holding crypto remains high at 89%. This suggests that the series of recent implosions may not have weakened consumer confidence in crypto companies, Paxos said in a press release.
“Despite fears that the tough ending to 2022 could be a chilling effect on consumer adoption of crypto, this research shows that consumers are looking for more integration of crypto into their financial lives, not less,” said Mike Coscetta, Chief Revenue Officer at Paxos.
On the contrary, the study revealed a significant appetite for a bigger role for crypto in everyday financial life. The top three desired crypto use cases mentioned by respondents are paying for goods and services, credit cards or loyalty programs, and sending money to friends and family. Long-term investing and day trading are some of the main use cases.
The Paxos survey was conducted online, in partnership with research firm Pollfish, among 5,000 US residents with household incomes above $50,000. These respondents were 18 or older and had purchased a cryptocurrency at least once in the past three years. The survey was conducted between January 5 and 6, 2023.
A message for banks
The Paxos survey also provides useful information to traditional banking and financial institutions. They can “diversify their product offerings” by including crypto products to give customers a better experience, he pointed out.
An overwhelming 75% of respondents indicated that they would like to buy crypto, if available, from their primary banks. As many as 81% of respondents in the 35-55+ age group preferred their top banks for buying the asset class, compared to 63% of respondents in the 18-34 age group .
“Consumers increasingly view crypto as a staple of their financial lives, and traditional businesses and financial institutions that deliver the experiences consumers are looking for in 2023 could carve out a formidable market position for themselves for years to come. come,” Coscetta said.
Crypto adoption on the rise
While the prolonged bear market has kept crypto prices low, some investors and institutions find it a good time to buy deeper. For example, Deutsche Bank’s asset management arm, DWS Group, was in talks early last month to buy minority stakes in two crypto companies, CryptoPotato reported.
In February, Ripple Labs CEO Brad Garlinghouse, in the face of the SEC’s crackdown on Kraken, pointed out that crypto adoption is growing around the world.
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