Trust in crypto seems to be a trend in the industry again. However, now when it hits external sectors, it is still far from unanimous, although some institutions are starting to relax their vigilance.
Crypto is making a name for itself outside the industry
While the crypto winter has hit the sector hard, causing many investors to flee, the tide is reportedly turning. Confidence seems to have increased in the crypto sphere, with the public not hiding their enthusiasm for the Ethereum merger. Others, like the Terra community, are excited to see their tokens break new records.
Confidence doesn’t stop there. While the industry credo for crypto is renewing itself, the industry has also managed to attract new customers. Banks are interested in the industry and want to offer their services. Large companies such as BlackRock are also taking the plunge.
The phenomenon should not stop, because according to the latest study from Bitstamp, more than half of European investors are interested in crypto. Of the 10,000 private investors surveyed, 52% would be willing to invest their money there. In France, nearly 30% of the sample would consider cryptocurrencies a reliable investment, compared to 52% for the rest of European countries. The country of human rights therefore still seems hesitant, but rates remain stable despite the crisis passing.
Likewise, among the 2000 institutions analyzed by Bitstamp, there is said to be an increasing interest in crypto. 31% of them would indeed like to invest more in the sector. As the end of the crisis draws near, although the month of September is still feared, the industry has finally found some letters of nobility.
The growing public interest in digital currencies, the purge of the sector or the opening to more traditional markets could all be reasons why Bitcoin and its cronies are appealing to businesses.
Everyday Crypto: A Fracture Still Visible
It also seems that the European public is increasingly open to the day-to-day use of cryptocurrency. In fact, 47% of respondents would be willing to pay for their groceries and other daily expenses with digital currency. A real improvement despite the crisis as last spring only 42% were in favour. In France, initiatives are increasing to enable payments in shops or restaurants. However, they remain marginal. The worldwide availability of a specialized and easily accessible payment card can nevertheless help.
On the other hand, the enthusiasm is not yet on the side of the United States, not even among traders. According to a study by Clarify Capital, cryptocurrencies are still considered the least reliable means of payment. Small businesses, for whom payment security is a guarantee of success, would therefore be more cautious. Lack of public education and ignorance about how blockchain works are believed to be the root of their fear.
US consumers would be less hesitant, with 7 in 10 people ready to adopt crypto if it became a regularly offered means of payment. 65% of consumers surveyed also said they would be more loyal to a brand that accepted this option.
Towards trust through a new financial system?
According to the IMF, a reinvention of the financial system seems necessary. Indeed, the growing presence of crypto and the advent of CBDCs are forcing the economy to take on new challenges. If the latter were not to compete because they are issued directly by central banks, cryptocurrencies represent a real alternative to the banking system for many.
For the International Monetary Fund, digital currencies are far from proven. Speculation and volatility would still be obstacles to their adoption. However, global regulation could enable the emergence of a new landscape. The institution does not rule out a model in which the banking sector and digital currencies would coexist. According to her, only the worldwide approval of the crypto could serve to spread more confidence. Central banks could also participate with their CBDCs, showing the general public that using the blockchain is open to them in complete safety. In this case, the prosperity of crypto could only depend on the choice of the population.
Nevertheless, the recognition of crypto in finance by the IMF already testifies to a new recognition in the institutions. Perhaps this is a first step towards building trust on a large scale?
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