Deloitte surveyed over 1,200 financial services executives and discovered that the great majority expect cryptocurrency will become prominent in the next two years.
This week, professional services firm Deloitte released its 2021 Global Block Survey study, which noted various industry trends. The research discusses the importance of cryptocurrencies in the economy’s future. According to the researchers, there is a “seismic shift in financial services” taking place.
It begins by stating that the COVID-19 pandemic has had a significant impact on the cryptocurrency market. This digitization of life is cited as a crucial element in influencing interest in cryptocurrency. The survey also includes views and opinions from those in the financial services industry, and there is a positive mood there as well.
Almost 80% of respondents believe that digital assets will be extremely or somewhat important within the next two years. This is a significant improvement from a few years ago, when most incumbents rejected the asset class.
Deloitte performed the poll in March and April 2021, interviewing 1,280 top executives from ten different countries. It specifically asked these people how their firms could use blockchain technology in areas such as banking and general transactions.
When asked if digital assets had a future in the economy, 785 replied yes, with a time horizon of 24 months. Financial Services Industry (FSI) pioneers overwhelmingly agree, with 96% responding positively. In terms of popular perceptions of the technology and asset class, 81% say it is broadly scalable and has attained mainstream adoption.
Unsurprisingly, executives see cybersecurity and regulatory concerns as the most significant barriers to business expansion. Cybersecurity is viewed as a barrier by 71% of respondents, while regulation is viewed as a barrier by 63%. The lack of value propositions, i.e. the usefulness of crypto, is only perceived as an issue by 43% of those polled.
The majority of respondents predict that their duties in relation to digital assets will be custodianship, followed by new payment methods and investment, with each receiving more than 40% of the vote. Asset tokenization is expected to play a role, according to 39% of respondents. Regulation will have an impact on all of these.
Regulation continues to stalk the market, primarily due to a sense of insecurity. Only now are the world’s top economies making broad regulatory decisions. South Korea, Japan, and, most recently, the United States are developing frameworks to regulate the market.
Decisions made by the United States, in particular, will have an impact on the market. So far, there are no indications of punitive actions. The SEC is keen on enacting regulations, like a “policeman on the beat,” as Chairman Gary Gensler called it.