- An EIU survey revealed that COVID-19 helped accelerate crypto adoption.
- 81% of respondents indicated they believe their country will become cashless.
- 50% of responders said COVID-19 drove the use of cryptocurrencies.
The Economist Intelligence Unit (EIU) conducted a survey to discover the current public sentiment towards digital currencies. The study commissioned by Crypto.com revealed that COVID-19 helped accelerate crypto acceptance.
EIU revealed that over 50% of the survey respondents were aware of the existence of digital currencies. In addition, open-source cryptos like Bitcoin remain the most well-known by respondents. Central bank digital currencies (CBDCs) remain less known despite extensive government press and marketing.
Also, 81% of respondents believe their countries are likely to become cashless societies. In comparison, only 71% shared the sentiment a year ago. On the other hand, cashless society doubters shrank from 28% to 19% in the same timeframe. In addition, 50% of respondents attributed the rise in crypto use to the COVID-19 pandemic.
The EIU survey covered different segments of society. As such, results revealed that users are adopting digital currencies for varying reasons. Consumers, in particular, are opting for digital currencies as a means of cashless payments. However, institutional investors and corporate treasurers are using cryptos as more of a store of value.
In fact, there have been heated debates regarding whether or not digital currencies, specifically Bitcoin, make a good substitute for gold. Notably, the report includes an interview with industry experts Henri Arslanian, PwC’s Crypto Lead, and Matthew McDermott, Goldman Sachs’ Managing Director and Global Head for Digital Assets.
The two experts supported the idea of crypto playing a similar role as gold in portfolios. In addition, the experts cited crypto features like limited supply, being authenticatable, dividable, good store of value, and providing portfolio diversification to support the idea.
Although the recent crypto market slump resulted in some investors dumping their coins at a loss, it seems some investors took the dip as a good entry point. In fact, several top exchanges experienced technical difficulties due to a sudden rise in users.
In addition, billionaire investor David Rubenstein recently spoke out in favor of cryptocurrency stating that crypto is not going away, just like gold is not going away.