89% still trust centralized custodians despite 2022’s collapses: Survey

American cryptocurrency users have not lost trust in "middlemen" to hold their cryptocurrencies, according to a January survey. paxos suggesting that most US crypto hodlers still trust banks, exchanges and mobile payment apps to guard your property.

An annual online survey published on March 7 by the stablecoin issuer conducted between January 5-6, sought to understand how the crypto winter and “big industry fallout” in 2022, including FTX and Alameda Research, affected consumer behavior. and trust in the cryptoecosystem. Paxos noted:

"2022 was a rollercoaster year for the cryptocurrency industry."

“From some of the highest Bitcoin prices to some of the lowest large-scale industry fallout from companies like Terra, FTX, Alameda Research and more, it was a volatile and potentially trust-testing year for the ecosystem,” added.

After a turbulent end to 2022, cryptocurrency consumers have remained confident for 2023. We conducted a consumer survey and found many reasons why cryptocurrencies are still considered a major staple for financial livelihoods. Read our full survey here: https://t.co/AwFrGMuX0r pic.twitter.com/TZcmct0O5L

—Paxos (@PaxosGlobal) March 7, 2023

However, the survey found that of those who heard and followed the FTX saga, more than half (57%) of those surveyed planned to buy more cryptocurrency or simply do nothing as a result of the news.

It also found that 89% of respondents still trusted "middlemen" such as "banks, cryptocurrency exchanges, and/or mobile payment apps" to hold their cryptocurrencies, stating:

“Indeed, despite high-profile crashes and underlying risk management malpractices seen at various crypto firms, crypto owners still trust brokers to hold crypto on their behalf.”

The survey also found a greater desire among consumers to be able to buy Bitcoin (BTC), ether (ETH) and other digital assets from home or traditional banks, with 75% of respondents indicating it was “likely or very likely” that they would buy cryptocurrency from their “main bank” if offered, an increase of 12 percentage points over the previous last year.

“In addition, 45% of respondents reported that they would be encouraged to invest more in cryptocurrencies if there was more widespread adoption by banks and other financial institutions,” Paxos added.

He said there was a "significant untapped opportunity" for banks if they expanded offerings to digital assets. "These services would not only meet the growing demand, but also drive greater participation," Paxos said.

Related: Paxos Engages in 'Constructive Discussions' With SEC: Report

Respondents qualified for the survey if they lived in the USA, were over the age of 18, had a total household income greater than $50,000, and purchased cryptocurrency at some point in the past three years. The survey recruited 5,000 participants.

“Despite the volatile crypto landscape of 2022, consumers have not lost faith in their crypto investments. This number was unchanged from the previous year’s report, underscoring the long-term confidence of those who participate in crypto markets,” Paxos wrote.

However, the timing of the survey means that the results obtained did not take into account Latest Crypto Headwindssuch as the bankruptcy of crypto lender Genesis, the crackdown on Binance USD (BUSD) involving Paxos and the financial uncertainty of crypto bank Silvergate Capital.