As Payments Go Digital, Survey Shows Bitcoin (BTC) and Cryptocurrency Must Overcome Major Trust Issues

A new survey from The Economist Intelligence Unit reveals there is still much work to do before the public gains confidence in Bitcoin (BTC) and other cryptocurrencies.

The survey shows that 64% of the 3,048 respondents are using digital payments such as online banking, mobile payment and digital currencies, to pay for over half of their purchases.

The results indicate cryptocurrencies are the least preferred as a payment method. Only 5% of the respondents report they always use cryptocurrency for purchases, and 10% say they use crypto assets often. Credit cards are the most popular payment method, followed by online banking, cash and then crypto.

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The result of the 2020 survey on digital payments comes out as the world transitions to cashless financial transactions amid the coronavirus pandemic. Investors have been pouring big money into mobile fintech platforms as online activity soars. Payment processing giant Stripe, valued at $36 billion, just completed a funding round of $600 million last week. Revolut raised $500 million at a $5.5 billion valuation in February.

But new blockchain-based platforms are still trying to carve out their niche with mainstream users. Among digital currencies, respondents have the least confidence in cryptocurrencies that are not backed by the government or any organization, such as Bitcoin. Thirty-eight percent say these decentralized cryptocurrencies are not trustworthy, while 26% say they feel confident about using them.

Respondents have more confidence in using government or central-bank digital currencies (CBDC), with 54% saying these assets are trustworthy, and 14% saying they are not trustworthy.

The report cites several factors that hamper the widespread use of cryptocurrency.

“Familiarity with cryptocurrencies as the first digital currency are high, yet matters of trust, use options, and understanding persist.”

Managing digital currencies also requires certain skills, and crypto is largely viewed as a high-risk asset in part because of its volatility.

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