Paxos Survey Reveals 75% of Consumers Still Confident in Crypto Despite Turbulent 2022

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.