American crypto users have not lost faith in “intermediaries” to hold crypto, with a January survey from Paxos showing the majority of United States crypto hodlers still rely on banks, exchanges and mobile payment apps to keep their assets.
The annual online survey published on March 7 by stablecoin publishers conducted between January 5 and January 6 seeks to understand how the future of crypto and the “big industry collapse” in 2022 – including FTX and Alameda Research – affect consumer behavior and confidence in the crypto ecosystem. Paxos notes:
“2022 is a rollercoaster year for the crypto industry.”
“From some of the highest Bitcoin prices to some of the lowest, large-scale industries from companies like Terra, FTX, Alameda Research, and others – this is a year of instability and the potential to test confidence for the ecosystem,” he added.
After the tumultuous end to 2022, crypto consumers remain optimistic for 2023. We conducted a consumer survey and found many reasons why crypto is still considered a major staple for their financial livelihood. Read the full survey here: https://t.co/AwFrGMuX0r pic.twitter.com/TZcmct0O5L
— Paxos (@PaxosGlobal) March 7, 2023
However, the survey found that of those who heard about and followed the FTX saga, more than half (57%) of respondents planned to buy more crypto or simply did something 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 crypto, stating:
“In fact, despite the high profile collapse and poor risk management practices seen in some crypto companies, crypto owners still trust intermediaries to hold crypto on their behalf.”
The survey also found a greater desire among consumers to be able to buy Bitcoin (BTC), Ether (ETH) and other digital assets from households or traditional banks, with 75% of respondents indicating that they are “likely or very likely” to buy crypto from their “primary bank ” if offered, a 12 percent increase from the previous year.
“In addition, 45% of respondents reported that they would be encouraged to invest more in crypto if there was more adoption by banks and other financial institutions,” Paxos added.
He said there was an “untapped opportunity” for banks if they expanded their offerings into digital assets. “Not only can these services meet the increased demand, but they will also lead to higher engagement,” Paxos said.
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Respondents qualified for the survey if they live in the United States, are over 18 years old, have a total household income of more than $50,000 and have purchased cryptocurrency sometime in the last three years. The survey took 5,000 participants.
“Despite the volatile crypto landscape of 2022, consumers have not lost faith in crypto investments. This number has not changed from the previous year’s report, which reflects the long-term confidence involved in the crypto market,” wrote Paxos.
But the timing of the survey means that the results collected do not take into account more recent crypto headwinds, such as the bankruptcy of crypto lender Genesis, the crackdown on Binance USD (BUSD) involving Paxos and the financial uncertainty of crypto bank Silvergate Capital.