Consumer confidence in crypto strong despite turbulent 2022: Paxos survey
After a series of high-profile collapses and the subsequent regulatory heat in its wake, if you thought the crypto saga had hit a roadblock, you couldn’t be wrong. However, a new survey by Paxos, the New York-headquartered blockchain technology company, puts a new spin on the story.
It says that 75% of consumers are confident about the future of cryptocurrencies.
Neither frightened nor deterred
A whopping 72% of those asked Paxos’ survey on cryptocurrency usage and purchasing behavior 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 crypto holdings remains high at 89%. It suggests that the series of recent implosions may not have dampened consumer confidence in crypto companies, Paxos so in a press release.
“Despite fears that the rocky end of 2022 will have a chilling effect on consumer crypto adoption, this research shows that consumers are looking for more integration of crypto into their financial lives, not less,” said Paxos Chief Revenue Officer Mike Coscetta.
On the contrary, the study found a significant appetite for a greater role for crypto in everyday finance. The top three cases of desired crypto use mentioned by respondents are paying for goods and services, credit cards or loyalty programs, and sending money to friends and family. Long-term investment and day trading are among the best uses.
The Paxos survey was conducted online, in collaboration with the research firm Pollfish, among 5,000 US residents whose household income was over $50,000. These respondents were aged 18 and over and had purchased a cryptocurrency at least once in the past three years. The survey was conducted between 5 and 6 January 2023.
A message to the banks
The Paxos survey also provides some useful insights for banks and traditional financial institutions. They can “diversify their product offering” by including crypto products to offer customers a better experience, it pointed out.
An overwhelming 75% of respondents indicated that they would like to purchase crypto, if available, from their primary banks. A whopping 81% of respondents in the 35-55+ age group favored their primary banks for purchasing the asset class, compared to 63% of respondents in the 18-34 age group.
“Consumers increasingly see 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 gain a formidable position in the market in the years to come,” confirmed Coscetta.
Crypto adoption on the rise
While the prolonged bear market has kept crypto prices low, some investors and institutions are finding this just the right time to buy deeper. For example, Deutsche Bank’s asset management arm DWS Group was in negotiations early last month to buy minority stakes in two crypto firms, The crypto potato reported.
In February, Ripple Labs CEO Brad Garlinghouse, in the face of the SEC crackdown on Kraken, pointed out that crypto adoption is growing worldwide.
