Consumer Confidence in Crypto Strong Despite Turbulent 2022: Paxos Survey

After a series of high-profile collapses and the ensuing regulatory heat in their wake, if you thought the crypto saga had hit a roadblock, you can’t be held wrong. However, a new survey by Paxos, the New York-headquartered blockchain technology company, offers a new spin to the tale.

It says 75% of consumers are confident about the future of cryptocurrencies.

Neither Daunted Nor Deterred

As many as 72% of the respondents of Paxos’ Cryptocurrency Adoption & Purchasing Behavior Survey asserted that they were not concerned with the volatility seen in the crypto market in 2022.

Consumers’ trust in intermediaries such as crypto exchanges, mobile payment apps, and banks for crypto holding remains high at 89%. It hints that the series of recent implosions may not have subdued consumers’ trust in crypto companies, Paxos said in a press release.

“Despite fears that the rocky end by 2022 would 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 Mike Coscetta, Head of Revenue at Paxos.

On the contrary, the study found a significant appetite for a greater role of crypto in everyday financial lives. The top three desired crypto use cases mentioned by the 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 among the top use cases.

The Paxos survey was conducted online, in partnership with research firm Pollfish, among 5,000 US residents whose household incomes were over $50,000. These respondents were 18 years and above and had purchased a cryptocurrency at least once in the last three years. The survey was conducted between January 5 and 6, 2023.

A Message for the Banks

The Paxos survey also provides some useful insights for banking and traditional financial institutions. They can “diversify their product offerings” 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. As many as 81% of respondents in the age group of 35-55+ favored their primary banks for purchasing the asset class, compared to 63% of respondents in the age group of 18-34.

“Consumers are increasingly viewing 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 could carve out a formidable position in the market for years to come,” Coscetta affirmed.

Crypto Adoption on the Rise

While the bear market has kept crypto prices low, some investors and institutions find this just the right 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 firms, 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.