Report Shows Security Concerns as the Major Challenge for Crypto Payment Adoption
A report by Bitget, released on March 25, reveals that security concerns are the most significant barrier to crypto payment adoption.
Based on an online survey conducted from February 7 to February 11, 2025, among 4,599 participants from the Bitget Wallet community, the findings highlight that more than 37% of investors perceive security risks, including hacks and fraud, as the main obstacle to cryptocurrency for transactions.
Security Risks Dominate Crypto Payment Adoption As A Regional Financial Habits Influence Fears
According to the report, the absence of robust legal protection for disputes further exacerbates these concerns.
Users fear potential losses due to limited recourse if their funds are compromised.
Additionally, the lack of trusted and reliable crypto payment service providers creates uncertainty, making many hesitant to use digital assets for transactions.
While security, volatility, and transaction fees are universal concerns, the report notes that these fears vary significantly across regions.
In Africa, 41% of respondents worry about irreversible transactions, fearing losses from mistakes or scams.
Similarly, 43% of participants in Southeast Asia express concerns over asset security, with East Asia following closely behind at 39%.
Despite the rapid rise in crypto adoption in these regions, cyber threats such as phishing attacks and Ponzi schemes are becoming increasingly prevalent.
Many first-time users lack experience securing self-custody wallets and managing private keys, making education crucial for safe adoption.
Generational Differences in Crypto Payment Adoption Concerns
Security fears are particularly pronounced among Gen X, with 42% of respondents citing hacks and fraud as their primary concern.
Meanwhile, Gen Z focuses more on financial barriers, with high transaction fees during peak periods being their biggest issue.
Millennials, on the other hand, face usability challenges, particularly in managing wallet complexities and cryptocurrency addresses.
Despite security concerns, the report highlights key motivations for crypto payment adoption.
Around 46% of respondents value the speed and seamless nature of crypto transactions, eliminating the delays associated with traditional banking.
Additionally, 41% of participants appreciate crypto’s global accessibility, allowing borderless transactions without regional restrictions.
Many users also favor the ability to spend crypto directly without converting it to fiat, which simplifies financial interactions and enhances convenience.
Rising Crypto Fraud and Global Regulatory Response
The growing adoption of crypto payments has also led to a surge in crypto-related fraud.
Chainalysis reported that crypto scammers defrauded victims of at least $9.9 billion in 2024, making it one of the most significant financial crimes of the year.
Additionally, CertiK’s recent security report reveals that $2.36 billion was lost across 760 on-chain security incidents in 2024, a 31.61% increase from 2023.
Phishing attacks alone accounted for $1.05 billion in losses.
In response to the alarming rise in fraud, regulators worldwide have implemented stricter measures.
In September 2024, the U.S. Senate Judiciary Committee pressured major crypto operators to strengthen fraud prevention mechanisms.
Meanwhile, European regulators under the Markets in Crypto-Assets (MiCA) framework have intensified crackdowns on unregistered crypto providers, citing their role in enabling money laundering and illicit financial activities.