The Crypto Phenomenon: Consumer Attitudes & Usage

Understanding Cryptocurrency and Its Global Impact

Cryptocurrency has evolved from a niche digital asset to a mainstream financial phenomenon, capturing global attention. This white paper explores consumer attitudes, usage trends, and the role of financial institutions in the crypto ecosystem.

What Is Cryptocurrency?

Cryptocurrency is a decentralized digital currency secured by cryptography, operating on blockchain technology. Key types include:

• Cryptocurrencies (e.g., Bitcoin, Ether): Independent of governments or central banks.
• Stablecoins: Pegged to reserve assets like fiat currencies.
• Central Bank Digital Currencies (CBDCs): Digital versions of national currencies issued by central banks.

Key Research Takeaways

1. Near-Universal Awareness:
   94% of adults with financial discretion globally are aware of cryptocurrency, signaling its transition into mainstream finance.
2. Growing Adoption:
   32% of crypto-aware consumers own or use cryptocurrency, with 62% reporting increased usage in the past year. Emerging markets show higher adoption rates (37%).

3. Primary Motivations:

   • Building wealth (41% owners).
   • Participating in the "financial way of the future" (42% owners).
   • Avoiding transaction fees (30% active owners).
4. Financial Institutions' Role:
   59% believe traditional financial institutions must embrace crypto for widespread acceptance. Interest in crypto-linked cards (55%) and rewards (57%) is high.

The Current Crypto Market Landscape

Consumer Segments

1. Active Owners (21%):

   • Use crypto for transactions.
   • Younger (49% millennials), male-skewed (65%).
   • Optimistic about crypto replacing fiat currencies (45%).

2. Passive Owners (11%):

   • Hold crypto as investment.
   • Less confident in crypto’s transactional utility than active owners.

3. Curious (21%):

   • Positive impressions but haven’t purchased.
   • Potential growth segment, especially in emerging markets.

4. Skeptics (11%):

   • Researched crypto but hold negative views.
   • Prefer low-risk investments.

5. Unengaged (37%):

   • Indifferent or uninformed about crypto.
   • Older demographic (39% boomers).

Demographics and Trends

• Gender: 65% of active owners are male.
• Age: 51% of owners are under 35.
• Emerging Markets: Higher engagement due to unstable local currencies.
• U.S. Trends: Non-white consumers lead adoption (44% of owners).

Financial Institutions and Crypto Integration

Opportunities for Banks

1. Crypto-Linked Cards:

   • Low current adoption (10% owners) but high interest (83% active owners).
   • Enable spending crypto at 80M+ Visa merchants.

2. Crypto Rewards:

   • 84% of owners and 82% of curious consumers interested.
   • Low-friction entry point for new users.
3. Consumer Trust:
   85% of owners would buy crypto from their bank.
   39% plan to switch to banks offering crypto products.

Stablecoins and CBDCs

• Stablecoins: Popular in emerging markets for savings (45%) and remittances (55%).
• CBDCs: Higher awareness (57%) but lower spending interest (20%).

The Future of Crypto

Growth Projections

• Increased Investment: 66% of owners plan to allocate more assets to crypto.
• Curious Consumers: 21% represent a near-term growth opportunity.

Strategies for Engagement

1. Education: Simplify crypto basics for curious consumers.
2. Accessibility: Offer crypto purchases via traditional banks.
3. Innovation: Expand crypto-linked cards and reward programs.

Visa’s Role in Crypto Commerce

Visa bridges traditional and crypto economies through:

• Crypto-Linked Cards: Partnering with 60+ platforms.
• Stablecoin Settlement: Piloting USDC settlements.
• CBDC Development: Advising central banks on digital currency integration.

👉 Explore Visa’s Crypto Solutions

Conclusion

Cryptocurrency is transitioning from an investment asset to a transactional tool, driven by consumer demand and financial institution adoption. Key opportunities include:

• Leveraging crypto-linked cards for everyday spending.
• Converting curious consumers through education and trust-building.
• Expanding stablecoin utility in emerging markets.

👉 Learn More About Crypto Trends

FAQs

Q: How safe is cryptocurrency for everyday transactions?
A: Crypto transactions are secure via blockchain, but volatility and lack of regulation remain concerns. Crypto-linked cards mitigate risks by converting to fiat at purchase.

Q: Will cryptocurrency replace traditional banking?
A: Unlikely in the near term, but crypto will complement existing systems, especially in cross-border payments and decentralized finance (DeFi).

Q: How can I start using cryptocurrency?
A: Begin with crypto rewards programs or small investments via trusted platforms. Crypto-linked cards offer a user-friendly entry point.

Q: Are stablecoins safer than other cryptocurrencies?
A: Yes, stablecoins are pegged to stable assets (e.g., USD), reducing volatility compared to Bitcoin or Ether.

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