Uncertainty as to the Wide Adoption of Cryptocurrencies as a National Currency Alternative Within the Financial Services Industry in the New York City Metropolitan Area

Cryptocurrencies still have not been adopted widely and there is uncertainty as to whether they can become a mainstream asset while becoming a viable alternative to a national currency such as the U.S. dollar. This research explored cryptocurrency adoption among financial institutions in the New York City Metropolitan Area, the nation’s major financial hub. Both encouraging and discouraging factors related to cryptocurrency adoption were explored with in-depth interviews with cryptocurrency professionals in addition to a literature review. The responses were coded, and emerging themes were discovered. The multiple-case study method was applied to three cases including banks, asset managers/financial advisors, and brokers/exchanges. Among encouraging factors were transaction speed, low cost, user independence and security, and groundbreaking technology. What discouraged adoption were uncertain regulation, volatility, high costs to educate users, and issues with service, usability, and security. While it is unlikely that a private cryptocurrency can replace the U.S. dollar, there are still benefits coming from cryptocurrency adoption. While users want simple, inexpensive, and safe cryptocurrency or blockchain-based financial products and services, the financial services industry can benefit from it. The tokenization of assets is becoming a new frontier with big players entering it.