OBSERVATIONS FROM THE FINTECH SNARK TANK
President Biden’s recent executive order regarding the responsible development of digital assets helped lift the price of Bitcoin, Ethereum, and other cryptocurrencies. According to Ari Redford, Head of Legal and Government Affairs at TRM Labs:
“The executive order is really a call for coordination—playing quarterback to ensure that regulators are working together to feed into a clear and consistent framework for crypto regulation rather than engage in disparate work streams.”
The executive order will help banks get more comfortable with the world of crypto and meet the demand that many Americans have to get Bitcoin and other cryptocurrencies directly from their banks.
Americans Want Crypto From Their Banks
In a February 2022 survey of US consumers, Cornerstone Advisors found that one in five American adults hold some form of cryptocurrency. Not surprisingly, there is a wide variation across the generations.
A quarter of Gen Zers (21 to 26 years old) are crypto investors, and nearly three in 10 plan to invest in 2022. Among Millennials (27 to 41), 30% have already invested in crypto, with 27% planning to do so this year. Among the Gen Zers and Millennials with crypto, 40% bought or sold it five or more times in 2021.
There’s promising news here for banks. Of Americans who already hold Bitcoin or other cryptocurrencies, more than half said they’d definitely use a bank to invest in crypto if they could, with another 42% indicating that might do so.