Crypto held back by stability and fraud fears – Coincover
Crypto is not reaching its full potential because consumers still have concerns about the systemic instability and criminality, including fraud and hacking, according to a new report published by Coincover.
The report, entitled Securing the Future of Cryptocurrencies, surveyed over 16,000 people in nine different countries to gauge attitudes towards cryptocurrencies. The findings show that volatility and security risks are the two main barriers to mass adoption.
Crypto exchanges are the least trusted financial services provider among non-crypto users with 30% saying they don't trust them at all. A similar percentage of people say they are worried about crypto – five percentage points more than artificial intelligence (AI). Almost 20% of consumers are cynical about the technology, while a quarter say they are not open to cryptocurrencies at all.
Despite the apparent scepticism, there are also reasons to be cheerful in Coincover’s report: the research has found that 17% of respondents already own crypto, with 30% likely to buy into cryptocurrencies at some point in the next year.
In addition, more than half (55%) of respondents consider themselves to be at least ‘crypto-curious’, with 11% stating they are active or committed to the market.
Crypto industry ‘working towards’ self-regulation
Coincover recommends the implementation of voluntary industry standards, alongside mechanisms for users to identify compliant providers, as a means of overcoming the trust barriers that exist between crypto and ordinary consumers.
David Janczewski, CEO and co-founder at Coincover, says: “Crypto’s potential is huge, but our research makes clear that the industry must take steps to address consumer concerns. Many still perceive cryptocurrency as a mysterious technology and the industry must show that it is doing everything it can to protect investors, build consumer confidence, and provide stronger foundations for the future.
“The industry can do more to protect users and reduce risk. We must develop clear standards and adopt best working practice principles. In so doing, we can reduce security risks, prevent reputational damage, and help to build confidence among users. Organisations which adhere to standards will become easily identifiable, and force out untrustworthy entities.”
Ian Taylor, Head of Crypto and Digital Assets at KPMG and Board Advisor to CryptoUK, adds: “Self-regulation is something that we’ve been working on as a global industry for a long time to support government entities, as well as international standard setters that develop the frameworks that get passed down to individual competent authorities. In a new industry, that's the first stepping stone to providing codes of conduct for members, and a set of rules that protects against harm to clients.”
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