Consumer Confidence in Crypto Remains Strong in the Wake of Turbulent 2022

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Mar 07, 2023, 09:00 ET

New survey from Paxos shows that 75 percent of consumers remain confident in the future of crypto

NEW YORK, March 7, 2023 /PRNewswire/ -- Despite a disruptive end to 2022 within the crypto industry, a vast majority of consumers remain confident in the future of cryptocurrency and are unphased by the volatility the marketplace has experienced over the previous months. According to new research from Paxos, the leading regulated blockchain infrastructure & tokenization platform, 75 percent of respondents indicated that they are very confident or somewhat confident in the future of cryptocurrency. An additional 72 percent of respondents reported that they have little or no concern about the volatility the crypto markets experienced over the last year.

Furthermore, despite the high-profile collapses and oversight issues stemming from the implosion of FTX and others, consumer trust in intermediaries for crypto holding remains high, with 89 percent of respondents saying that they continue to trust banks, crypto exchanges and/or mobile payments apps to hold their crypto.

There is huge appetite among consumers for greater expansion of crypto into their everyday financial lives – specifically, financial transactions. When asked what their most desired use cases for crypto are, three of the top responses called for greater integration in daily financial activity including: paying for goods and services (42 percent); credit cards or loyalty card programs (38 percent); and sending money to friends and family (34 percent). 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 their product offerings. Banks stand to play a key role in driving crypto success moving forward. Three quarters of respondents indicated that they would be likely or very likely to purchase crypto from their primary bank if it were offered – representing a 12 percent increase over 2022. Additionally, 45 percent of respondents said that they would be encouraged to invest more in crypto if there were 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 more merchants accepted crypto payments

"Despite fears that the rocky end to 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," says Mike Coscetta, Head of Revenue at Paxos. "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."

Additional findings of Paxos' 2023 Cryptocurrency Adoption & Purchasing Behavior Survey also include:

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 that they plan to buy more crypto or do nothing as a result of the news.
Banks have key crypto opportunities with older consumers: When asked how likely they were to buy crypto from their primary bank, 81 percent of respondents aged 35-55+ said they were either very likely or like to do. Meanwhile, only 63 percent of respondents aged 18-34 said they were very likely or likely to do so.
National media lags in cryptocurrency information battle: When asked what resources they refer to when making crypto investment decisions, crypto-specific websites (48 percent) and social media (42 percent) were the sources favored most by consumers. These were followed by traditional resources including national media (36 percent) and financial advisors (34 percent).

About Paxos' Cryptocurrency Adoption & Purchasing Behavior Survey

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

About Paxos

Paxos is the leading regulated blockchain infrastructure and tokenization platform. Its products are the foundation for a new, open financial system that can operate faster and more efficiently. Today, trillions of dollars are locked in inefficient, outdated financial plumbing that is inaccessible to millions of people. Paxos is replatforming the financial system to enable assets to instantaneously move anywhere in the world, at any time, in a trustworthy way.

Paxos uses technology to tokenize, custody, trade and settle assets. It builds enterprise blockchain solutions for institutions like 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 raised from leading investors including Oak HC/FT, Declaration Partners, Founders Fund, Mithril Capital and PayPal Ventures. With offices in New York, London and Singapore, Paxos takes a global approach to modernizing the financial system.

For more information on the survey or to get in touch with Paxos, reach out to
[email protected] or visit paxos.com.

Contact:

Becky McClain
Director of Communications, Paxos
[email protected]

SOURCE Paxos