Turbulent 2022 Fails to Shake Consumer Confidence in Crypto

Despite a tumultuous end to 2022 in the crypto business, the great majority of customers are optimistic about the future of cryptocurrency and are unfazed by the volatility seen in the market in recent months. According to recent data from Paxos, the leading regulated blockchain infrastructure & tokenization platform, 75% of respondents are extremely optimistic or moderately confident in cryptocurrency’s future. An further 72 percent of respondents said they were unconcerned with the volatility in the crypto markets during the previous year.

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

Consumers have a strong desire for more integration of cryptocurrency into their daily financial life, especially financial transactions. When asked what their most desired use cases for cryptocurrency are, three of the top replies advocated for better integration into daily financial activities, including: paying for products and services (42%), credit cards or loyalty card programs (38%), and transferring money to friends and family (38%). (34 percent). Long-term investment (52 percent) and day trading were other popular use cases (36 percent).

This widespread interest highlights the possibilities for banks and traditional financial institutions to provide a better experience to their consumers by diversifying their product offerings through the use of cryptocurrency. Banks will be critical in pushing crypto success in the future. Three-quarters of respondents said they would be likely or very likely to buy cryptocurrency via their primary bank if it was available, a 12% rise from 2022. Furthermore, 45 percent of respondents said they would be inspired to invest more in crypto if banks and other financial institutions adopted it more widely, while 40 percent said they would be encouraged to invest more in crypto if more retailers accepted crypto payments.

Mike Coscetta, Head of Revenue at Paxos, said:

“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. 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.”