Study finds COVID-19 pandemic accelerated adoption of cryptocurrencies.

Users are increasingly turning to digital payments, and the COVID-19 pandemic accelerated the adoption of cryptocurrencies. This conclusion was reached by analysts at The Economist Intelligence Unit (EIU) in a study commissioned by Crypto.com.

76% of treasury & institutional investor respondents say #covid19 has accelerated demand and adoption of #digitalcurrencies. How has the perceptions and use cases changed? Read report > https://t.co/esWjb7hbcC via @cryptocom pic.twitter.com/6nM1Mo4iga

— The Economist Intelligence Unit (@TheEIU) May 26, 2021

The EIU conducted a survey of 3,053 retail consumers and 200 respondents from institutional investors and corporate treasurers.

46% of consumers agreed that in the backdrop of the coronavirus pandemic, the use of cryptocurrencies has become more attractive. A similar sentiment regarding central bank digital currencies (CBDCs), corporate digital currencies, and DeFi products was shared by 40%, 35% and 34% of respondents, respectively.

The most widespread form of digital assets among retail consumers was cryptocurrencies — owned by 18% of respondents. CBDCs are used by 18% of respondents, corporate digital currencies by 12%.

Opinions among institutional investors and corporate treasurers about the cryptocurrency class are divided. About one-third of respondents (34%) consider them currencies, 31% — assets, and 27% — a combination of the two.

Survey participants regard cryptocurrencies (80%), CBDCs (77%) and corporate digital currencies (76%) as suitable for diversifying investment portfolios or treasury accounts.

According to respondents, the main purpose of cryptocurrencies in portfolios and on accounts is capital appreciation (33%), diversification of alternative assets (31%), and payments for large settlements (29%). 28% of respondents supported hedging risks with digital assets.

Earlier reports by recruitment agency Alba Heaven show that 23.6% of South Korean students invested in cryptocurrencies, of whom 68.3% experienced psychological distress due to market volatility.

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