More
than 40% of cryptocurrency users have expressed skepticism about cryptocurrencies due
to concerns about their volatility and financial risks, according to a survey
by Coincover. Cryptocurrencies have faced various challenges and controversies
over the years, which have contributed to a mixed reputation. According to a
survey by Coincover, some of the key challenges facing the cryptocurrency
industry when it comes to improving its reputation and achieving mass adoption.
The report identifies
two major obstacles to the mass adoption of cryptocurrencies, volatility and
security risks. These are longstanding concerns within the crypto industry that
have contributed to a lack of confidence among potential users. The report’s
findings are based on a substantial survey of over 16,000 people across nine
countries.
The current reputation
is likely influenced by factors, such as market volatility, high-profile
security breaches, regulatory uncertainty, and the association of cryptocurrencies
with illegal activities.
To address these
challenges, the report suggests the implementation of voluntary industry
standards. These standards would serve as guidelines for cryptocurrency
providers to enhance security, transparency, and accountability in their
operations.
Additionally, the
report proposes mechanisms for users to identify providers that adhere to these
standards, which could help build trust and confidence among consumers.
Ian Taylor, the Head of Crypto and Digital Assets at KPMG and the Board
Advisor at CryptoUK, added: “Self-regulation is something that
we’ve been working on as a global industry for a long time to support
government entities, as well as international standard setters that develop the
frameworks that get passed down to individual competent authorities. In a new
industry, that’s the first stepping stone to providing codes of
conduct for members, and a set of rules that protects against harm to
clients.”
Encouraging
users to move to recognized providers who adhere to industry standards could
help establish a more secure and reliable ecosystem. This would provide users
with a clear way to distinguish between reputable and potentially risky
cryptocurrency services.
Cryptocurrency Preference: Bitcoin, NFTs, and
Ethereum
The
survey indicates that a significant portion…
