In the last two years, we have witnessed ever more disruptive transformation in global and European financial markets, such as the increasingly widespread integration of crypto assets. This term defines not just crypto currencies, such as Bitcoin and Ether, but also tokens that represent real-world goods or assets. 

This asset class is revolutionizing the traditional definition of the term ‘asset’, together with the role of stakeholders involved in traditional financial services value chains. These new financial instruments offer new growth opportunities to financial institutions, which need to implement a proactive approach and find new perspectives in order to take full advantage of innovations and stay competitive, without of course losing sight of challenges and risks. 

Online survey on crypto assets in Italy 

Last year, Boerse Stuttgart Digital and the Osservatorio Blockchain & Web3 Politecnico di Milano carried out two online surveys in order to analyze the current Italian crypto assets landscape. The first survey was carried out in collaboration with BVA Doxa and aimed at analyzing the adoption of cryptocurrency and tokens, investigating how much users were familiar with, interested in and used such tools. The sample represented the Italian internet user population between 18 and 75 years of age. The second survey, carried out in collaboration with ABI Lab, involved 18 Italian banks and set out to explore the interest in and adoption of blockchain technologies, as well as crypto assets, in the banking and financial services industry. 

Consumer demand of crypto assets 

The first survey highlighted a concrete interest in crypto assets by a substantial share of the Italian population: 11% of citizens aged 18-75 owned them in the past. This translates to roughly 7 million investors, and another 7 million stated they wanted to own crypto assets in the future. 

Moreover, this survey showed that crypto assets investment was more common among young people, the so-called Generation Z, and those with the highest income, therefore with more capital available for such investment. 

The purchase channels of crypto assets preferred by consumers emerged as a further interesting data point. On the one hand, active investors favoured online exchange services offered both by industry leaders and emerging startups. On the other, potential crypto assets buyers seemed to prefer purchase channels, such as bank apps and generic financial trading services. 

This trend represents a clear indication of this market’s significant potential and of the expansion opportunities to be found in the cryptocurrency industry, especially for traditional finance actors. 

This potential is confirmed by the data related to crypto assets ownership modalities. Most active investors stated that they keep their crypto assets within the Exchanges themselves, as this allows for easy management and safekeeping. However, these crypto asset users are facing a risk that should not be underestimated, given that they do not have full control of the deposited funds. The availability of a dedicated service offered by a trusted bank, acting as a safe-keeper of crypto assets, could encourage some of the participants to enter the crypto currency space. 

This first survey also highlighted the interviewees’ limited crypto assets knowledge, as well as a deep gap between the self-assessed knowledge and the actual crypto assets know-how. 

Crypto assets offering: traditional banks 

The second survey had a different goal: exploring crypto assets-related services offered by Italian banks. These play a decisive role in the evolution of crypto assets and Web3 amongst the main international banks, especially given the significant interest shown on a global level.  

The participating Italian banks declared they focused mainly on end-user services, such as cryptocurrency trading and digital asset payment methods, rather than crypto assets safekeeping. The development of such services is a challenge for banks due to the lack of clear regulations and limited end-user demand. The latter is linked to factors such as limited knowledge (including within the banks themselves), security concerns and technical complexity. 

As for blockchain technologies, Italian banks were mainly interested in tokenization according to the survey. 

Crypto assets: future outlooks 

Notwithstanding these challenges and risks, the surveys show that crypto assets are being adopted at an increasing rate in Italy, first and foremost by end users. The offer of institutional actors is struggling to keep up with demand. However, traditional banks in particular could play a pivotal role in facilitating access to crypto assets by offering trustworthy custody services, as well as authoritative consultancy on the risks and opportunities of these instruments. This could help increase end-user trust in the crypto industry. 

However, it is crucial for security measures and relevant regulations to be adopted for a successful transition to the mass adoption of crypto assets. On this matter, the European Union has been playing a pioneering role: following the introduction of the digital finance package (MiCAR and DLT Pilot Regime), it now represents the biggest regulated digital asset market in the world. Thanks to this clear and harmonized legal framework, traditional actors would be able to introduce products and services for these new asset classes, bridging the gap between traditional and digital finance. This overviewunderlines the growthpotential of this sector in Italy and beyond. 

Boerse Stuttgart Digital is your reliable partner for integrated and tailor-made solutions along the cryptocurrency value chain throughout Europe. Feel free to contact us for a non-binding consultation. 

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