Despite the 2022 crypto winter, precipitated by the collapse of high-profile projects, and exchanges, trust in centralized custodians remains high.
A survey commissioned by stablecoin issuer Paxos on American crypto investors revealed that interest in digital assets continues to grow.
On top of that, it showed that interest and confidence in centralized custodian services like payment providers, wallet services, and financial services firms remained high.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe – We publish new crypto explainer videos every week!
The survey, published on March 7th, questioned American digital asset holders from January 5th to January 6th. It aimed to discover the impact of the 2022 crypto winter on consumer confidence in digital assets. Paxos stated:
2022 was a rollercoaster year for the crypto industry.
According to the survey, over 75% of participants remain confident in the future of crypto. The figures indicate no significant change in consumer confidence from the previous year. It was found that 72% of participants were not worried about the volatility experienced in the crypto industry in 2022.
Regarding crypto payments, the survey found that around 42% of US crypto holders were interested in using their assets to pay for services and goods. It also showed that 38% of respondents were interested in participating in crypto-based loyalty programs.
Around 34% of survey participants expressed interest in using crypto to send money to family and friends, showing a real demand for traditional banks to participate in the crypto sector. Paxos stated:
Financial services companies continue to have a tremendous opportunity to attract more business from current and new customers by adding blockchain and digital asset solutions to their existing offerings.
One of the most significant findings was that 89% of survey participants trusted centralized custodians. They indicated they still trusted institutions like crypto exchanges, banks, and mobile payment apps to manage their private keys. Paxos said:
In fact, despite the high-profile collapses and underlying poor risk management practices seen in several crypto companies, crypto owners still trust intermediaries to hold crypto on their behalf.
The survey also found that crypto asset holders used various sources to decide where to invest. At the top of the list were crypto-focused sites. However, none of the sources cited was used by more than 50% of those surveyed.
