After the crisis, public confidence in crypto would come back stronger than ever – BeinCrypto

Confidence in crypto seems to be trending in the industry again. However, if it now affects external sectors, it is still far from unanimous, although some institutions are beginning to let their guard down.

Crypto is making a name for itself beyond 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 picked up in the crypto sphere, with the public not hiding their enthusiasm for the Ethereum merger. Others, like the Terra community, rejoice to see their tokens break new records.

The trust doesn’t stop there. As the industry’s creed for crypto renews itself, the sector has also been successful in attracting 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 since, according to the latest study carried out by Bitstamp, more than half of European investors would be interested in crypto. Of the 10,000 retail investors surveyed, 52% would be willing to put their money there. In France, nearly 30% of the sample would consider cryptocurrencies to be a reliable investment, compared to 52% for the rest of European countries. The country of human rights therefore still seems hesitant, but the rates remain stable despite the passage of the crisis.

Similarly, among the 2000 institutions analyzed by Bitstamp, interest in crypto would be increasingly present. 31% of them would indeed plan to invest more in the sector. While the end of the crisis is looming more and more, 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 be all reasons why Bitcoin and its cronies appeal to companies.

Everyday Crypto: A Fracture Still Visible

It would also seem that the European public is becoming more open to the daily use of cryptocurrency. In fact, 47% of respondents would be willing to pay for their groceries and other everyday expenses with digital currency. A real improvement despite the crisis since only 42% were in favor last spring. In France, initiatives are multiplying to allow payments in stores or restaurants. However, they remain marginal. The global availability of a specialized and easily accessible payment card could nevertheless help the cause.

On the other hand, enthusiasm is not yet on the side of the United States, including among traders. According to one study carried out by Clarify Capital, cryptocurrencies would still be 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 of how blockchain works is believed to be the root of their fear.
American consumers would be less hesitant, with 7 out of 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 confidence brought about by a new financial system?

According to IMF, the reinvention of the financial system seems necessary. Indeed, the growing presence of crypto and the arrival of CBDCs are forcing the economy to face new challenges. If the latter should not compete since they are issued directly from Central Banks, cryptocurrencies represent for many a real alternative to the banking system.

Source: International Monetary Fund Twitter account

For the International Monetary Fund, digital currencies are still far from proven. Speculation and volatility would still be obstacles to their adoption. A global regulation could however allow the advent 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 global approval of the crypto could serve to spread more trust. Central banks could also participate with their CBDCs, by demonstrating to the general public that the use of the blockchain is open to them in complete security. 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 to establishing trust on a large scale?

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After the crisis, public confidence in crypto would come back stronger than ever – BeinCrypto


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