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Bitcoin goes Mainstream; but 84% of CFOs still say it’s a financial risk

By Avivah Litan | March 11, 2021 | 1 Comment

Gartner Survey on CFOs and Bitcoin  

  • 84% of finance executives say holding bitcoin poses a financial risk due to its volatility.
  • 16% of finance executives are willing to hold bitcoin in the future as part of their organization’s financial strategy.

These findings are part of our new research What CFOs are Saying about Bitcoin

Indeed, there are many risks that come from holding or trading cryptocurrency (and Bitcoin) as noted below.

 

But we believe these risks will be mitigated with the evolution and maturity of CeDeFi as defined in our research note What you need to know about Blockchain DeFi

Below we outline the types of digital currencies that live on blockchain, what organizations can do with them.  We highlight income that bitcoin holders can earn through CeFi vs. DeFi. The differences are enormous, and so are the risks.

 

 

Indeed many companies are already engaged in leveraging their Bitcoin holdings. Here is a comparison of CeFi lending rates and DeFi yield farming rates.

 

 

The risks in using DeFi are extraordinarily high – and without regulation and legal protections, organizations will surely stay away no matter what the benefits and rewards are. CeDeFi is the area ripe for innovation – user interfaces, seamless access, smart contract security and regulatory, legal protections.  Stay tuned.

The Gartner Blog Network provides an opportunity for Gartner analysts to test ideas and move research forward. Because the content posted by Gartner analysts on this site does not undergo our standard editorial review, all comments or opinions expressed hereunder are those of the individual contributors and do not represent the views of Gartner, Inc. or its management.

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1 Comment

  • Waki says:

    If 84% of finance executives are associating it with risk I think without regulation and legal protections the future isn’t looking bright.