Consumer confidence in crypto remains strong in the wake of a turbulent 2022

New research from Paxos shows that 75 percent of consumers are still confident about the future crypto

NEW YORK, March 7, 2023 /PRNewswire/ — Despite a disruptive end to 2022 within crypto industry, a large majority of consumers remain confident about the future cryptocurrency and is phased out by the volatility the marketplace has experienced in the previous months. According to new research from Paxosthe leading regulated blockchain infrastructure and tokenization platform, 75 percent of respondents indicated that they are very confident or somewhat confident about the future of cryptocurrency. Another 72 percent of respondents reported that they have little or no concern about volatility crypto markets experienced in the past year.

Despite the high-profile collapses and oversight problems stemming from the implosion of FTX and others, consumer confidence in intermediaries for crypto holdings remain high, with 89 percent of respondents saying they continue to trust banks, crypto exchanges and/or mobile payment apps to keep theirs crypto.

There is a great appetite among consumers for greater expansion of crypto into their daily financial lives – specifically financial transactions. When asked what their most desired use cases are for crypto are, three of the top respondents called for greater integration into daily economic activity, including: paying for goods and services (42 percent); credit or loyalty card programs (38 percent); and send money to friends and family (34 per cent). Other top use cases included long-term investing (52 percent) and day trading (36 percent).

This mainstream interest underscores the opportunity that exists for banks and traditional financial institutions to deliver a better experience to their customers by leveraging crypto to diversify its product offering. Banks play a key role in the drive crypto success going forward. Three quarters of respondents stated that they would be likely or very likely to buy crypto from the primary bank if offered – representing an increase of 12 per cent compared to 2022. In addition, 45 per cent of respondents said they would be encouraged to invest more in crypto if there was more mainstream adoption by banks and other financial institutions, with 40 percent of respondents saying they would be encouraged to invest more in crypto if several merchants accepted crypto payments

“Despite fears that the rocky end of 2022 will have a chilling effect on consumers crypto adoption, this research shows that consumers are looking for more integration of crypto into their financial lives, no less,” says Mike Coscetta, chief revenue officer at Paxos. “Consumers are increasingly looking crypto as a primary staple of their financial lives, and traditional businesses and financial institutions that deliver the experiences consumers are looking for in 2023 can achieve a formidable position in the market for years to come.”

Additional findings of Paxos’ 2023 Cryptocurrency Adoption and purchase behavior research also includes:

• Crypto investment to jump despite FTX and Alameda collapse: Of those who had heard about and followed the bankruptcies of FTX and Alameda Research, most (57 percent) indicated they plan to buy more crypto or do nothing as a result of the news.
• The banks have the key crypto opportunities with older consumers: When asked how likely they are to buy crypto from the primary bank, 81 percent of respondents aged 35-55+ said they were either very likely or like to do so. Meanwhile, only 63 percent of respondents aged 18-34 said they were very likely or likely to do so.
• National media are lagging behind cryptocurrency information battle: When asked which resources they refer to when they create crypto investment decisions, crypto-specific websites (48 percent) and social media (42 percent) were the sources most favored by consumers. These were followed by traditional resources including national media (36 percent) and financial advisors (34 percent).

About Paxos Cryptocurrency Adoption and purchase behavior survey

Paxos teamed up with research firm Pollfish to survey more than 5,000 respondents via an online survey between 5 January 2023 and 6 January 2023. They were required to live in the United States, be 18 years of age or older, and have a total household income greater than $50,000. They were also required to have a bank account and must have bought cryptocurrency the last three years.

About Paxos

Paxos is the leading regulated blockchain infrastructure and tokenization platform. The products are the basis for a new, open financial system that can work faster and more efficiently. Today, trillions of dollars are locked up in inefficient, outdated economic plumbing that is inaccessible to millions of people. Paxos re-platforms the financial system to enable assets to instantly move anywhere in the world, at any time, in a reliable manner.

Paxos uses technology to tokenize, custody, trade and settle assets. It builds enterprise blockchain solutions for institutions such as PayPal, Interactive Brokers, Mastercard, MercadoLibre, Nubank, Bank of America, Credit Suisse and Societe Generale. Paxos is a top-funded fintech company with more than 540 million dollars raised from leading investors including Oak HC/FT, Declaration Partners, Founders Fund, Mithril Capital and PayPal Ventures. With offices in New York, London and SingaporePaxos takes a global approach to modernizing the financial system.

For more information about the survey or to get in touch with Paxos, please contact
[email protected] or visit paxos.com.

Contact:

Becky McClain
Communications Director, Paxos
[email protected]

SOURCE Paxos