Cambridge Study Sheds Light On Crypto Adoption During COVID-19

A new study, the Global COVID-19 FinTech Regulatory Rapid Assessment Study conducted by the Cambridge Centre for Alternative Finance (CCAF) and the World Bank, reveals the extent to which regulators around the world are adopting and thinking favorably of cryptocurrency and FinTech. Most importantly, while the report highlights the rising popularity of digital payments, which may be due to COVID-19-related concerns about viral transmission via credit cards and cash, the study also shows very little global interest in using cryptocurrency exchanges. Notably, the small increases that did occur in crypto exchange usage were mostly concentrated in advanced economies, while emerging economies showed even less increased usage. Conversely, the most marked increases in digital payments and remittances were reported in emerging economies, with advanced economies following behind.

The results may demonstrate increased international interest in digital currency while also suggesting international hesitance about adopting crypto fully, a hesitance that in recent years has been due largely to safety concerns about using crypto exchanges. Nevertheless, as multiple countries begin to regulate crypto and even develop digital fiat currencies, and as COVID-19 makes digital financial services more attractive, the study may predict a more prominent international role for crypto in the future.

By Isaac Goluboff

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