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The cryptocurrency market might have declined in 2018 and scared some investors, but institutional finance executives are still confident of the industry’s future. According to a recent report by Forbes, the majority of these high-level officers believe that digital currencies are here to stay and will have a role to play in the future of finance.

Forbes based its report on a study made by Greenwich Associates, a global leader in market intelligence and advisory services. The management consulting firm released a report on Sept. 12 titled “The Institutionalization of Cryptocurrency,” which tackles the entry of institutional investors into the crypto industry.

According to the report, 72 percent of institutional investors believe that cryptocurrency is here to stay. The survey involved 141 institutional finance executives from Asia, North America, and Europe.

Greenwich Associates’ Market Structure and Technology group vice president Richard Johnson summed institutional investors’ confidence by saying:

“They’re telling us that they don’t think it’s going away and that it’s here to stay.”

This positive view among institutional executives also jives with the latest predictions and studies done on the industry. For instance, Coinbase CEO Brian Armstrong believes that crypto adoption will accelerate in the next five years and that usage could balloon to a billion people. Based on the attitude toward cryptos by college students, a Qriously study also reached a similar conclusion.

This confidence shows that most investors remain optimistic despite the crypto market losing around 70 percent since the year started. However, this optimism does not extend to all the cryptocurrencies currently trading in the market. Based on the survey, a sizeable 32 percent of the respondents believe that many cryptos will fail, but the few remaining will not only survive but thrive in the future.

This prediction is hardly news to anyone who has been following the crypto industry for some time. Many believe that there are just too many tokens at the moment that failure of some is inevitable. While the exact figure remains elusive, Fortune reported back in June that as many as 1,000 coins “have bought the farm.”

Meanwhile, 38 percent of the institutional executives surveyed say that the crypto industry will gain a boost from future regulations, which will nudge cryptocurrency into a path of innovation and growth. Currently, there are indications that governments across the globe are now getting more cautious in assessing the crypto situation in their countries before making any regulation affecting the industry.

For instance, the Reserve Bank of India has formed a new research unit to tackle regulatory issues involving nascent technologies such as cryptocurrency, blockchain, and artificial intelligence. On the other hand, EU finance ministers say that they are not rushing to come up with uniform crypto regulations across all member states until further analysis by authorities. These confirm that governments are seriously looking for the right approach on how to regulate the space to minimize risks to investors without inadvertently restricting innovation.

Institutional Finance Executives Remain Confident of Crypto Industry’s Future was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.

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