A recent survey by Paxos has shown that American cryptocurrency holders still rely on intermediaries such as banks, cryptocurrency exchanges, and mobile payment apps to hold their digital assets. The survey, which was conducted in January, aimed to understand how the crypto winter and major industry fallout in 2022 affected consumer behavior and trust in the crypto ecosystem.
Despite the volatile nature of the crypto industry in 2022, including the bankruptcies of FTX and Alameda Research, the survey found that 89% of respondents still trusted brokers to hold their crypto assets. This is an important finding, given the high-profile crashes and poor risk management practices seen at various crypto firms.
Interestingly, the survey also found that there was a growing desire among consumers to buy Bitcoin, Ether, and other digital assets from traditional banks. The survey revealed that 75% of respondents were likely or very likely to buy cryptocurrency at their primary bank if offered, an increase of 12% over the previous year. Additionally, 45% of respondents reported that they would be encouraged to invest more in cryptocurrencies if there was more widespread adoption by banks and other financial institutions.
According to Paxos, there is a significant untapped opportunity for banks if they expand their offerings to include digital assets. Offering these services would meet the growing demand and result in increased engagement. However, the survey was conducted before more recent cryptocurrency headwinds, such as the bankruptcy of cryptocurrency lender Genesis, the Binance USD (BUSD) crackdown involving Paxos, and financial uncertainty at cryptocurrency bank Silvergate Capital. .
The survey was conducted among 5,000 participants who were over the age of 18, lived in the United States, had a total household income greater than $50,000, and had purchased cryptocurrency in the past three years. Despite the volatile crypto landscape of 2022, the survey shows that consumers did not lose faith in their crypto investments, underscoring the long-term confidence of those who participate in crypto markets.
