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<p>55% of US Gen Z prefer crypto over traditional banks, driving decentralized finance adoption. India tops global crypto adoption for the second year, while Indonesia’s market grows 200% YoY.</p>
<p>Stablecoins reach $160B in circulation with 27M wallets using them monthly for seamless payments. The use of cryptocurrency is rapidly increasing among the young adults especially the gen Z. They prefer using cryptocurrencies rather than conventional banking systems.</p>
<p>A survey by the Bernstein analysts revealed that 55% of Gen Z in the United States prefer investing in crypto over using other traditional financial channels. The shift indicates a new paradigm where the society wants financial systems that are not centralized.</p>
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   <p lang="en" dir="ltr">According to DLNews, a survey by the Financial Industry Regulatory Authority of the United States shows that 55% of American Generation Z prefer to invest in cryptocurrencies, believe that digital banking platforms are clumsy and opaque, and prefer to manage their finances on the…</p>— Wu Blockchain (@WuBlockchain) <a href="https://twitter.com/WuBlockchain/status/1834905425894162918?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">September 14, 2024</a>
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<p>Millennials and Gen Z are currently acquiring more financial control as they become a major contributor to household wealth. This is expected to foster new development of financial technologies in their money management strategies.</p>
<p>In particular, the younger generations’ approach has become more aligned with DeFi applications and stablecoins. Unlike Baby Boomers who have traditionally used traditional banks and brokerages.</p>
<h3 class="wp-block-heading" id="h-gen-z-s-shift-toward-decentralized-finance"><strong>Gen Z’s Shift Toward Decentralized Finance</strong></h3>
<p><a href="https://www.thecoinrepublic.com/2024/08/23/teenager-reaped-30k-from-200-solana-investment-can-blockdag-be-the-next-big-bet/" rel="noopener noreferrer nofollow">Gen Z, people born between</a> 1997-2012, are dissatisfied with the traditional banking systems, which are considered slow, expensive, and analog. Interest in decentralized finance is on the rise. Most of them in this age group prefer conducting their financial transactions via decentralized applications and stablecoins.</p>
<p>They regard digital banking services as cumbersome and opaque, which makes them look for blockchain-based alternatives. Using blockchain technology, money can be transferred across borders at a cheaper cost as compared to other forms of transactions.</p>
<p>As of now, around 27 million wallets are engaged in stablecoin payments on a monthly basis. Therefore, with advancement in blockchain scalability, one can transfer $1000 across borders for a penny.</p>
<p>As of now, there are about $160 billion worth of stablecoins in circulation, and stablecoin payments are becoming more common. New payment methods may appear with the integration of technologies like artificial intelligence into these systems.</p>
<p>These AI-driven intermediaries may provide better payment alternatives, improving the consumer experience in the digital financial ecosystem.</p>
<h3 class="wp-block-heading" id="h-crypto-adoption-among-millennials-and-gen-z"><strong>Crypto Adoption Among Millennials and Gen Z</strong></h3>
<p>The millennials who were born between 1981 and 1996, and the Generation Z are shaping the financial sector as they amass more wealth. According to the trading app Robinhood, 60% of its assets belong to customers who are below 43 years of age.</p>
<p>This data points to the fact that young adults are taking their money to crypto as they come of age financially and try to get better yields on their investments. Some of the major financial technology companies such as Revolut, Stripe, and PayPal are also expanding into the crypto markets mainly to attract the youth demographic.</p>
<p>These companies seek to get a piece of the increasing crypto market as they understand the shift in consumer preferences. Currently, the financial institutions, which are known to be slow adopters of new technologies, are <a href="https://www.thecoinrepublic.com/2024/09/03/making-india-a-global-hub-for-blockchain-giakaa-capital-unites-government-investors-and-startups-at-india-blockchain-summit-2024/" rel="noopener noreferrer nofollow">opening their eyes towards crypto</a> as a good investment and a good way to conduct transactions.</p>
<p>Earlier hesitant and not very active institutional investors are now gradually changing their attitude. Some are being introduced to crypto equity as new market cycles are being formed. As younger generations are more likely to own digital assets, there is a demand for financial services that meet this trend.</p>
<h3 class="wp-block-heading" id="h-global-crypto-adoption-trends-and-implications"><strong>Global Crypto Adoption Trends and Implications</strong></h3>
<p>This is not a trend that is only happening in the United States; it is happening worldwide. Crypto adoption in India has <a href="https://www.chainalysis.com/blog/central-southern-asia-crypto-adoption-2024/" rel="noopener noreferrer nofollow">continued</a> to rise and the country leads the world in this for the second year in a row, as revealed by Chainalysis.</p>
<p>Despite regulatory restrictions and heavy taxes on crypto trade in India, people’s interest continues to rise. Other countries such as Indonesia and Nigeria are also following the same trend.</p>
<p>In countries with low purchasing power per capita, the decentralized transaction volume has increased, showing that retail investors are interested in crypto. For instance, Indonesia’s crypto market saw $157.1 billion in trading inflows in one year.</p>
<p>The country has recorded an increase in the crypto market by almost 200% from the previous year. This makes it one of the fastest-growing in the Central and Southern Asia region. The renewed interest in crypto is changing the dynamics of the financial sector, and established financial players are struggling to adapt.</p>
<p>Following the ban, companies like Binance and KuCoin have had to learn how to maneuver around regulatory frameworks in countries like India, to resume and even increase operations and users. With the changing nature of the regulatory frameworks, the use of digital assets may fasten.</p>
<p>The post <a href="https://www.thecoinrepublic.com/2024/09/16/55-of-genz-favor-crypto-heres-why/" rel="noopener noreferrer nofollow">55% of GenZ Favor Crypto. Here’s Why</a> appeared first on <a href="https://www.thecoinrepublic.com" rel="noopener noreferrer nofollow">The Coin Republic</a>.</p>

55% of GenZ Favor Crypto. Here’s Why

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