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The financial system is broken, but cryptocurrencies are not ready to replace it – DCG-Harris survey
(Kitco News) – Political division in the United States is at its highest level in decades, as each side prefers to remain in their respective news bubbles while “crossing the aisle” has become almost non-existent. But there’s one thing a majority of voters in swing states can agree on: The U.S. financial system is outdated and needs an overhaul, but cryptocurrencies may not be the solution.
According to results of a study conducted by the Digital Currency Group and the Harris Group that surveyed 1,201 people in six swing states who may vote either way in the upcoming election, “The current financial system is widely unpopular, with broad voter consensus on fact that that system is unjust and that the younger generations, in particular, are disadvantaged.”
That said, most do not see cryptocurrencies as the solution, although current cryptocurrency holders and those in the “Crypto-Positive” group are more likely to see them as a viable alternative.
A majority of respondents (80%) said the system favors elites over ordinary people, lacks transparency (79%), is difficult to understand (67%), and that younger generations are set to fail (63%). ). Only 38% think the system “is designed for people like me”, while 26% think it is “fair for everyone”.
“Interestingly, the majority (60-65%) are generally positive about their current and future personal financial health (60-65%) and their understanding of the financial system (77%),” the report states. “However, this positivity does not translate into positive feelings towards the current financial system as a whole.”
When asked about their overall perception of cryptocurrencies, 31% of registered voters surveyed said they had a very positive (7%) or somewhat positive (25%) perception of the industry. Current cryptocurrency ownership among voters is relatively low (14%) and the majority (69%) said they felt uninformed on the matter.
Despite the low adoption rate, nearly a third of voters have positive feelings towards cryptocurrencies. About a fifth of those surveyed said they plan to own cryptocurrencies in the next six months.
Among those who have a positive view of the sector, 62% define it as innovative, 50% consider it promising and 45% highlight its accessibility. Most of these voters “agree that cryptocurrencies represent a new path to financial security and prosperity (83%), are the future of transactions (79%), level the playing field for financial health (77 %) and are designed for people. like me (70%),” the report states.
Even with a high level of skepticism, “about half of voters overall and a majority of Crypto-Positive voters would be more likely to purchase cryptocurrencies if the cryptocurrencies were offered by an established or regulated company (50% overall, 76% Crypto-Positive ), or whether the government has consumer and investor protection laws in place (48% overall, 69% Crypto-Positive),” the survey found.
Recently, several candidates running for various positions – including presidential candidates like Donald Trump and Robert Kennedy Jr., along with those running for Congress – have included cryptocurrencies in their platforms as their importance rises in the minds of voters.
“The vast majority of voters overall and Crypto-Positive voters plan to vote in the upcoming 2024 election (over 90%) and are narrowly divided in terms of party,” the report states.
40% of respondents said they would like political candidates to talk more about digital currency. At the same time, “Most voters don’t trust elected officials to understand innovative technology like cryptocurrencies, and more than half are worried that politicians will stifle innovation through excessive regulation,” DCG said. “The vast majority want politicians to make sure they understand cryptocurrencies before regulating them.”
A quarter said enthusiasm for cryptocurrencies would make them trust a political candidate more, and 30% said they would be more likely to support a crypto-friendly political candidate. Nearly half of those surveyed said they didn’t trust political candidates who said they wanted to interfere with cryptocurrencies.
“Of note, cryptocurrency regulation enjoys broad support: a majority of voters overall and nearly half of Crypto-Positive voters favor an overhaul of cryptocurrencies,” the report states. “Similarly, about 20-25% of voters and a third of Crypto-Positive voters want elected officials to focus on regulating cryptocurrencies or protecting crypto investors.”
Demographically, crypto-positive voters “are more likely to be male, younger, black or Hispanic, and less likely to have a four-year college degree than voters overall.”
“Compared to the overall voter pool, Crypto-Positive voters do not show large differences in household income and political party leaning,” the survey found. “Among states surveyed, Ohio voters are most negative toward cryptocurrencies.”
And having a positive view of cryptocurrencies wasn’t limited to those who claimed that “around 40% of crypto-positive voters have never owned cryptocurrencies.”
The biggest barrier to owning cryptocurrencies was a lack of education, with the majority saying they didn’t feel knowledgeable about cryptocurrencies, and even the crypto-positive audience saw a high level of responses indicating that cryptocurrencies are difficult to understand .
“When questioned about the reasons for negative perceptions, some indicate that they are unfamiliar or do not have much experience with cryptocurrencies, suggesting the possibility of converting with more information or experience,” the report states.
The DCG said cryptocurrencies have been increasingly included in campaign speeches due to the demographics of Crypto-Positive voters (young people and people of color), who represent an attractive audience for candidates, particularly Democrats.
“In a highly polarized political environment, cryptocurrencies could be a relatively non-partisan issue with support from a portion of the electorate,” they said. “Talking about cryptocurrencies in an informed way could help candidates stand out.”
While there is substantial interest in candidates talking about digital currency, there is little trust that they actually understand cryptocurrencies, so “A politician who demonstrates an understanding of cryptocurrencies could stand out from the pack,” DCG said. “Voters who would support a pro-cryptocurrency candidate say they would see him as forward-thinking and open-minded, suggesting a possible halo effect.”
And with bipartisanship at an all-time low and regulators attacking the cryptocurrency industry with full force, the poll found that voters overall “support an overhaul of cryptocurrencies” and “More would buy cryptocurrencies if government protection laws were in place, suggesting that hesitancy towards cryptocurrencies could be tempered with a trusted authority.”
“Measured suggestions to regulate cryptocurrencies in an overall pro-crypto message could calm voters who are skeptical of cryptocurrencies, while simultaneously appealing to the Crypto-Positive segment,” the report states.
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