According to the results of a survey published by the CFA Institute and FINRA, Generation Z is positioning itself as a driver of change in the cryptocurrency investment space.
The survey revealed that the unprecedented access to technology that young people of this generation have, coupled with an innovative mindset, is driving the adoption of cryptocurrencies and digital assets as their primary financial tools.
The results of this survey highlighted that More than 55% of Gen Z investors prefer to invest in cryptocurrencies over traditional assetsIn fact, the survey highlighted that this percentage of the generational group in question already has some kind of investment in cryptocurrencies, which underlines their inclination towards digital and decentralized finance, and their growing distrust towards the traditional banking system.
A strong preference for cryptocurrencies
Generation Z has grown up in a digital environment, which has shaped their financial preferences and behaviors, facilitating the acceptance and adoption of cryptocurrencies as a new form of money and digital asset class. According to the survey, this demographic views traditional banking platforms as clunky and opaque, leading them to seek out more efficient and transparent alternatives.
Most Gen Zers prefer to conduct their transactions on the blockchain, using decentralized financial applications, cryptocurrencies and stablecoins, which allow them to manage their finances more autonomously and quickly.
Definomics Labs, which shared the survey conducted by the CFA Institute and FINRA, stressed that Generation Z is digital, including in the financial world, which is changing the rules of the game and showing how emerging technologies and social networks can transform the way we invest and manage finances.
27 million monthly active stablecoin wallets
Stablecoins are among the preferred crypto assets of Generation Z, which is why their use has grown exponentially in recent years. Currently, there are around 27 million active wallets monthly making payments with stablecoins.
According to the survey, this phenomenon is partly due to the stability and low fees offered by these cryptoassets, allowing users to make international transfers almost instantly and at low cost.
A significant change in financial education
The way Gen Z is learning about investing and cryptocurrencies is also changing. According to the survey, unlike previous generations, who relied on financial advisors or textbooks, young people today are turning to social media and digital platforms to educate themselves on the use of cryptocurrencies and other digital assets.
The survey revealed that 48% of cryptocurrency investors from this generational group They use social media as their main source of financial knowledge, followed by internet searches and advice from family and friends.
On the other hand, the survey also revealed that members of Generation Z tend to invest in cryptocurrencies from an early age. It is presumed that due to the accessibility of social media and financial apps, this generational group feels more comfortable starting their financial journey from an early age, contrasting with the experience of previous generations who faced higher barriers to entering the world of investments.
The influence of Generation Z on the cryptocurrency market
The survey results show that cryptocurrencies and digital assets such as NFT tokens have become an integral part of Gen Z’s financial strategy. Furthermore, the growing acceptance of cryptocurrencies by financial services platforms and financial institutions such as PayPal reflects a shift in market perception, which has begun to recognise the importance of this new investment asset class.
In short, Gen Z’s adoption of cryptocurrencies and digital assets is driving a momentous shift toward a more accessible financial system that is less dependent on traditional intermediaries, potentially redefining the future financial landscape and accelerating digitalization.
