Survey Finds DeFi, Web3, CBDC Still Unknown Concepts For Most

Key Insights:

• With interest in the crypto space rising, many Americans are now familiar with cryptocurrencies.
• Terms like DeFi, Web3, and CBDCs still lack familiarity.
• Users still believe that there is a lack of innovation in existing traditional financial services.

The blockchain and crypto space has seen immense growth over the last couple of years. However, not the entire crypto-verse has gained the popularity that some top cryptocurrencies like bitcoin and ethereum enjoy. 

DeFi, Web3, and CBDCs Still Unfamiliar

Morning Consult, a polling agency, recently released a new survey highlighting that fewer than one-third of Americans have heard of DeFi compared to 77% of crypto owners. The survey conducted between February 16 and 23 had 4,404 US-based adult respondents.

Furthermore, the survey also found that the level of awareness of central bank digital currencies (CBDCs) and Web3 is even lower at 30% and 21% of non-owners, respectively. However, on the bright side, 91% of Americans have heard of cryptocurrency, a number intriguingly close to representing the entire population.

On the other hand, awareness of decentralized finance (Defi) among non-owners is limited to about 90 million Americans and still has a long way to go.

Notably, data from Statistica highlighted that 87% or around 290 million Americans had no crypto holding through 2021. Morning Consult’s report written by analyst Charlotte Principato states that 40% of respondents felt a lack of innovation in existing traditional financial services.

Amid rising innovation in the blockchain space, Americans are actively diversifying their financial services and providers. However, demand for more innovative services is not necessarily a factor driving users out of traditional finance.

Shift in Financial Sector

In the crypto space, concepts like DeFi, NFTs, Web3, and CBDCs have gained immense popularity; however, the same could act as an echo chamber catering only to the insiders. Nonetheless, traditional finance giants like Goldman Sachs and Bank of America have begun exploring crypto-based services amid rising demand for the same. 

Principato thinks that the rising crypto awareness coupled with traditional services utilizing crypto demand could eventually push consumers out of the conventional finance sector entirely and into DeFi.

She further states, 

“Industry leaders need to pay attention to the attitudinal and behavioral shifts — but, more importantly, they must continue to innovate product offerings that can rival those of their DeFi counterparts.”