US crypto users haven’t lost confidence in the “middlemen” who hold their cryptocurrencies, according to a January survey by Paxos suggesting that most crypto hodlers in the United States still trust banks, exchanges, and mobile payment apps to guard their property.
Annual online survey published on March 7 by the stablecoin publisher, and conducted between January 5 and 6, sought to understand how the crypto winter and the “big industry crash” of 2022 – including FTX and Alameda Research – affected consumer behavior and trust in the crypto ecosystem. Paxos noted:
“2022. year was the year for the crypto industry.”
“Ranging from some of the highest bitcoin prices ever to some of the lowest, major industry declines from companies like Terra, FTX, Alameda Research and more – it’s been a volatile and potentially confidence-testing year for the ecosystem,” it added.
After a turbulent end to 2022, crypto consumers remain confident for 2023. We conducted a consumer survey and found many reasons why cryptocurrencies are still considered a primary means of financial livelihood. Read our full survey here: https://t.co/AwFrGMuX0r pic.twitter.com/TZcmct0O5L
— Paxos (@PaxosGlobal) March 7, 2023
However, the survey found that of those who have heard and followed the FTX saga, more than half (57%) of respondents either plan to buy more cryptocurrencies or simply take no action as a result of the news.
It also found that 89% of respondents still trust “intermediaries” such as “banks, crypto exchanges and/or mobile payment apps” to hold their cryptocurrencies, stating:
“In fact, despite the major collapses and poor risk management practices seen in several crypto companies, crypto holders continue to trust intermediaries who hold crypto on their behalf.”
The survey also revealed more consumer desire to be able to buy Bitcoin (BTC), Ether (ETH) and other digital assets from households or traditional banks, with 75% of respondents saying they would be “likely or very likely” to buy cryptocurrencies from their “primary bank” if offered, up 12 percentage points from a year before.
“Additionally, 45% of respondents said they would be encouraged to invest more in cryptocurrencies if banks and other financial institutions were more accepting of cryptocurrencies,” Paxos added.
It said there was a “significant untapped opportunity” for banks if they expanded their offerings to include digital assets. “Not only would these services meet growing demand, but they would also result in greater engagement,” Paxos claims.
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Respondents qualified for the survey if they lived in United States, were over the age of 18, had a total household income of more than $50,000, and bought a cryptocurrency sometime in the last three years. The research recruited 5,000 participants.
“Despite the volatile crypto landscape in 2022, consumers have not lost faith in their crypto investments. This number remained unchanged from last year’s report, highlighting the long-term confidence of those participating in the crypto markets,” Paxos wrote.
However, the timing of the survey means that the results collected have not been taken into account newer crypto headwindssuch as the bankruptcy of crypto lender Genesis, the blow to Binance USD (BUSD) involving Paxos and the financial uncertainty of crypto bank Silvergate Capital.