According to a survey conducted by Paxos in January, most American cryptocurrency holders still have faith in intermediaries such as banks, mobile payment apps, and exchanges to safeguard their digital assets.
Paxos Release Crypto Survey After 2022 Crisis
Paxos, the stablecoin issuer, released an annual online survey on March 7th. The survey, which took place from January 5th to 6th, aimed to gauge the impact of the crypto winter and major industry failures, such as Alameda Research and FTX bankruptcies, on consumer confidence and behavior in the crypto space.
According to Paxos, 2022 was a turbulent year for the crypto industry. The crypto ecosystem experienced extreme fluctuations in 2022, ranging from high Bitcoin prices to extremely low ones.
The year witnessed significant industry upheavals, including the collapses of companies such as Alameda Research, Terra, FTX, and others. This volatility tested the confidence of stakeholders in the ecosystem.
Surprisingly, the survey revealed that among those who were aware of the FTX incident, 57% of respondents intended to increase their crypto holdings or maintain their existing positions. Furthermore, the survey discovered that 89% of participants maintained their trust in “intermediaries” such as mobile payment apps, banks, and crypto exchanges to safeguard their digital assets.
They were unconcerned about the well-publicized collapses and inadequate risk management practices in several crypto entities. According to the survey, consumers grew interested in purchasing Bitcoin and other cryptos from traditional or well-known banks.
75% of the participants stated they would be willing to buy crypto from their “primary bank” if such options were available. Notably, this marks a 12% increase from results recorded in 2022 for the same question.
45% Of Participants Call For Financial Institutions To Embrace Crypto
“Furthermore, the survey found that 45% of those surveyed said they would be motivated to increase their investments in crypto if financial institutions embraced it more widely, indicating a desire for greater mainstream adoption,” Paxos added. Paxos claimed that there is a substantial untapped potential for banks to broaden their range of digital asset offerings, which could satisfy the growing demand and increase customer engagement.
Meanwhile, the survey involved 5,000 participants who qualified if they lived in the United States, were over 18 years old, had a household income of over $50,000, and had purchased cryptocurrency within the past three years. The stablecoin issuer stated that consumers remained confident in their digital asset investments even with the volatile crypto market in 2022.
This finding is consistent with last year’s report, indicating the enduring trust of those participating in crypto markets. However, it is noteworthy that the survey occurred before the slew of recent challenges in the crypto space. Recent challenges include the bankruptcy of Genesis, the financial instability of Silvergate Capital, and the SEC’s attack on Paxos BUSD stablecoin.
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