A recent survey indicates that over 40% of Americans are open to utilizing decentralized finance (DeFi) protocols if proposed legislation becomes law.
The DeFi Education Fund (DEF) found that many Americans are curious about DeFi, as respondents expressed a lack of trust in the traditional finance system.
Conducted by Ipsos from August 18 to 21, the survey polled 1,321 US adults. Alec Tyson, vice president at Ipsos Public Affairs, noted the study revealed an emerging awareness of cryptocurrency and decentralized finance, with many Americans frustrated by the current financial institutions’ ability to provide security, personalized control, and flexibility.
40% of Americans open to DeFi
The poll revealed that 42% of respondents would likely try DeFi if the proposed legislation is enacted, with 9% indicating they are “extremely or very likely” and 33% stating they are “somewhat likely” to try it.
Congress is currently reviewing bills that would clarify the legal status of various cryptocurrencies and determine how financial regulators manage the sector.
Forty percent of respondents expressed they would “likely try out DeFi,” with 84% of those planning to use it for online purchases.
Only 12% of those surveyed indicated a very or extremely high interest in learning about DeFi, while nearly 40% believed that DeFi could solve the problem of high transaction and service fees in traditional banking.
“I would keep more of my paycheck in my pocket. I wouldn’t have to rely on any of the financial institutions to pay them fees,” shared a respondent from Queens, New York City.
Study shows mistrust of banks and TradFi
The DEF reported that trust in traditional finance was “low across the board,” highlighting significant skepticism across the financial landscape.
Less than half of respondents felt that the current US financial system meets their needs, and only a quarter believed that the traditional system is structured to benefit average people.
More Americans are expressing a desire for “control over my money at all times,” with many seeking ways to send or receive money without intermediaries, according to the researchers.
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Concerns about financial surveillance and security are prominent, with only 29% believing that the US financial system is secure at present.
DeFi still a nascent sector
The researchers concluded that the desire for enhanced security and lower transaction fees are primary motivations for Americans interested in DeFi, as they believe it could resolve current friction points in finance.
Last month, US Federal Reserve Governor Christopher Waller stated there was “nothing to be afraid of” regarding crypto payments operating outside the traditional banking framework.
Currently, DeFi is still an emerging sector, with the total value locked across all protocols at $160 billion, according to DefiLlama, which is less than Boeing’s market capitalization.
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