Study: Cryptocurrency holders in the US trust banks and exchanges for custody
A recent survey by crypto firm Paxos shows that American cryptocurrency holders still trust intermediaries such as banks, cryptocurrency trading platforms, and mobile payment apps to hold their digital assets.
The survey, conducted in January, aims to understand how the crypto winter and big industry fallout in 2022 will affect consumer behavior and confidence in the cryptocurrency ecosystem.
Despite the volatile nature of the cryptocurrency industry in 2022, including the bankruptcies of FTX and Alameda Research, the survey found that 89% of respondents still trust brokers to hold their crypto assets.
This is an important finding, given the high-profile crashes and poor risk management practices seen in many crypto firms.
Interestingly, the survey also found that there is a growing desire among consumers to buy Bitcoin, Ethereum, and other cryptocurrencies from traditional banks.
The survey revealed that 75% of respondents were as likely or very likely to buy cryptocurrency from their primary bank if offered, an increase of 12% over the previous year.
In addition, 45% of the respondents reported that they would be encouraged to invest more in cryptocurrencies if there was more mainstream adoption by banks and other financial institutions.
According to Paxos, there is a huge untapped opportunity for banks if they expand their offering to include digital assets.
Offering these services would meet the increased demand and lead to higher participation.
However, the survey was conducted ahead of recent cryptocurrency headwinds, such as the bankruptcy of crypto-lending firm Genesis, the crackdown on stablecoin (BUSD) involving the organizers of this survey, Paxos, and the financial uncertainty of crypto-bank Silvergate Capital.
The survey was conducted on 5,000 respondents over the age of 18, who live in the US, have a total household income of more than $50,000, and have purchased cryptocurrency within the past three years.
Despite the volatile crypto landscape of 2022, the survey showed that consumers have not lost confidence in their crypto investments, underscoring the long-term confidence of those involved in the crypto markets.
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