Millennials Distrust Traditional Financial System, Reveals Study

By Swati Kishore

If you are a crypto proponent then the present level of digital currency adoption among the millennials would disappoint you. The millennials, even though untrusting of the traditional financial system, are finding it hard to leave the safe waters and transition to the crypto economy. What is needed is the right push and more regulation to build investor confidence. As studies would suggest millennials want to take that leap.

Research shows that millennials do not trust the banks. A study carried out by the global research and analytics firm Edelman Intelligence shows that as much as 77 per cent of the millennials are of the view that the traditional banking system is biased towards the rich.

As per the research 4 out of 5 millennials anticipate another worldwide financial crisis owing to the corruption inherent in the traditional financial system. 75 per cent of the respondents worry about the possibility of the existent financial system being hacked. Such an event would put the private information of many at risk.

Figures put the distribution of ownership of digital currency among the millennials at 17.2 per cent.

The study by Edelman also reveals that 25 per cent of the wealthy millennials has invested in cryptocurrency, while 31 per cent have an active interest in digital coins, and a massive 74% believe in the potential of Blockchain Technology to build a safe financial system.

In another survey conducted by the Sustany Capital, it was brought to light that 88% of the respondents are interested in making crypto investments, while 42% said yes to using crypto as savings.

These studies reveal that the more educated the respondents are, the more open they become to the prospect of a crypto economy.

Another survey revealed that 97% of the generation Xers and millennials in the study were interested in educating themselves about the workings of digital currencies. Many of these believe that they will be able to gain confidence in investing in cryptos with the assistance of a financial advisor.

Hence, we can conclude that millennials today, with their distrust in the traditional financial system, are looking for ways to conduct finances in a decentralized manner without the need for corrupt intermediaries.