TL;DR
- A new Paxos survey of over 5,000 respondents found that 75% remain confident in the future of cryptocurrency
- 72% expressed little or no concern about crypto market volatility experienced over the previous year
- 89% continue to trust banks, crypto exchanges, and payment apps to hold their digital assets
- 75% of respondents said they would purchase crypto from their primary bank if offered, a 12% increase from 2022
- Long-term investing remains the top use case at 52%, followed by paying for goods and services at 42%
Despite the catastrophic collapse of FTX, the implosion of Terraform Labs, and a prolonged bear market that wiped out trillions in value, consumers are not giving up on cryptocurrency. A comprehensive survey released on March 7, 2023, by Paxos, the regulated blockchain infrastructure and tokenization platform, reveals a surprisingly resilient consumer base that is not only holding steady but actively seeking deeper integration of crypto into their daily financial lives.
Confidence Holds Strong in the Wake of Industry Collapse
The Paxos 2023 Cryptocurrency Adoption and Purchasing Behavior Survey, conducted in partnership with research firm Pollfish, polled more than 5,000 respondents between January 5 and January 6, 2023. The results paint a picture of remarkable resilience. Fully 75% of respondents indicated they are very confident or somewhat confident in the future of cryptocurrency, a finding that runs counter to the narrative of widespread disillusionment following the dramatic failures of 2022.
Even more striking, 72% of respondents reported having little or no concern about the volatility the crypto markets experienced over the last year. This suggests that many consumers view the turbulence of 2022 as a cyclical event rather than a fundamental failure of the technology.
Trust in Intermediaries Remains High
One might expect that the collapse of FTX, one of the largest cryptocurrency exchanges in the world, would shatter consumer trust in intermediaries. The data tells a different story. According to the survey, 89% of respondents said they continue to trust banks, crypto exchanges, and mobile payment apps to hold their cryptocurrency.
This high level of trust extends to traditional financial institutions in particular. The survey found that 75% of respondents indicated they would be likely or very likely to purchase crypto from their primary bank if it were offered—representing a 12% increase over 2022. This signals a significant opportunity for banks and traditional financial institutions to capture growing consumer demand for cryptocurrency services.
Consumers Want Crypto in Everyday Transactions
The survey reveals that consumers are not just interested in crypto as a speculative investment. They want practical, everyday applications. When asked about their most desired use cases, the top responses reflected a desire for integration into daily financial activities: long-term investing led at 52%, followed by paying for goods and services at 42%, credit card or loyalty card programs at 38%, day-trading at 36%, and sending money to friends and family at 34%.
This appetite for real-world utility underscores the opportunity for businesses to differentiate themselves by leveraging blockchain technology and crypto services. Mike Coscetta, Head of Revenue at Paxos, noted that “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.”
The FTX Effect: More Buying, Not Less
Perhaps the most surprising finding relates to the impact of the FTX and Alameda Research bankruptcy. Of those who had heard about and followed the collapses, a majority of 57% indicated they plan to buy more cryptocurrency or maintain their current holdings as a result of the news. Only a minority reported plans to reduce their crypto exposure.
This finding suggests that the FTX collapse, rather than undermining confidence in cryptocurrency itself, may have reinforced the conviction of existing holders while highlighting the importance of regulated, trustworthy platforms.
Demographic Shifts and Information Sources
The survey also revealed interesting demographic patterns. Banks have a particularly strong opportunity with older consumers: 81% of respondents aged 35 to 55 and older said they were very likely or likely to buy crypto from their primary bank, compared to 63% of respondents aged 18 to 34. This suggests that older consumers, who may be more risk-averse, place greater trust in established financial institutions.
When it comes to information sources for crypto investment decisions, crypto-specific websites led at 48%, followed by social media at 42%, national media at 36%, and financial advisors at 34%. The relatively low reliance on traditional financial advisors suggests an opportunity for the advisory industry to develop more sophisticated crypto offerings.
Additionally, 45% of respondents said they would be encouraged to invest more in crypto if there were more mainstream adoption by banks and financial institutions, and 40% said the same about merchant acceptance of crypto payments.
Why This Matters
The Paxos survey provides crucial data points for anyone tracking the trajectory of cryptocurrency adoption. Despite one of the most turbulent years in crypto history, consumer confidence remains remarkably high, and demand for deeper integration of blockchain-based financial services continues to grow. For banks, fintech companies, and payment processors, the message is clear: consumers want crypto services, and the institutions that move first stand to capture significant market share in an increasingly competitive landscape.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always conduct your own research before making investment decisions.
75% willing to buy crypto from their primary bank is the real signal. that number was 63% the year before. the trend matters more than the level
Beatrice Okafor the 12% jump in bank-purchase interest is the actual datapoint. banks distributing crypto changes the acquisition funnel completely
Hong-Mei Z. 12 percent jump in bank purchase interest and yet actual bank crypto offerings are still basically zero. demand is ahead of product
survivor_bias_ the 12% jump in bank purchase interest is real demand but zero banks actually offer it. people want to buy crypto from their bank and banks still wont touch it
Liesbeth D. the gap between bank purchase intent and actual bank offerings is the story. 75% want it, maybe 3 banks globally actually provide it. fintech is asleep at the wheel
paxos survey of 5000 people and 75 percent still confident after ftx. 72 percent shrugged off the volatility entirely
long term investing at 52 percent being the top use case is actually bullish. people are learning
Idris B. 75% want bank crypto but 3 banks globally actually offer it. that gap is the entire opportunity and nobody is capitalizing on it properly
Devanshi P. 75 percent want bank crypto and 3 banks offer it. that gap is the biggest uncaptured opportunity in fintech and nobody is building it properly
paxos survey confirms what we already knew – people who actually use crypto believe in it
turbulent 2022 with luna ftx and 3ac and consumers are still confident – remarkable resilience
luna and ftx wiped out billions and 75% are still confident. tells you everything about whether crypto adoption is driven by speculation or actual utility belief
sample_size_ exactly. 89% trust exchanges AFTER FTX collapsed. survey respondents have no idea what theyre answering
survey of 5000 consumers showing 75% confidence should silence the crypto is dead narrative
5000 respondents is decent but the selection bias is real. people who respond to crypto surveys are already predisposed to be positive about crypto
tomasz nailed it. 5000 respondents who answer crypto surveys are already self selected for bullishness. real confidence data needs broader sampling
these numbers would have been unthinkable in 2018 after the ico crash – the space has matured
89 percent still trust exchanges after watching FTX, BlockFi, Celsius and Genesis implode. survey respondents will literally tell you anything
Anya K. the respondents probably couldnt name what FTX actually did wrong. trust without understanding is just ignorance with confidence
75 percent want bank integrated crypto and like 3 banks globally offer it. that gap is a trillion dollar opportunity sitting in plain sight
89 percent trust exchanges after FTX. either people have goldfish memories or they dont understand what custodial risk actually means
jana_p 89% trusting exchanges after FTX is insane. it means either people dont understand custodial risk or they think lightning will save them. neither is true
89 percent still trust exchanges after everything that happened in 2022. goldfish memory is real
jana_p 89% trusting exchanges after FTX is wild. the survey basically proves that users dont learn they just forget
pulse_survey_ 89% trust is goldfish memory pure and simple. BlockFi, Celsius, FTX, Genesis, Voyager. five major custodial failures in 18 months and people still hand over their keys. unreal
survey_decay_ 89 percent trusting exchanges after FTX is not goldfish memory its lack of alternatives. self custody is still too hard for normies so they take the custodial risk
surveying 5000 people who opted into a crypto survey and concluding 75% are confident is like surveying people at a gym about fitness habits. selection bias 101