Solutions for institutions adopting crypto: reputation and education

Institutions moving into blockchain and crypto have a number of challenges to overcome. Instead of focussing on these challenges, we’ve instead gathered some of the most relevant solutions to the common hurdles faced. In this blog, we are focussing on reputation and education. Often these challenges come intertwined because without one it is possible to feel a negative impact on the other. Anyone who understands crypto is more likely to become a better investor and user, whether in a retail or institutional setting. Reputation is key to ensuring that everyone interacting with crypto through the institution is on board, as well as protected as much as possible from potential ramifications.

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Education 

Education on what crypto is, how it works, and the full world of the blockchain, can be a big thorn in institutions' relationship with crypto. A lack of education leads to possible unsafe assets and data, misconceptions about the ecosystem, and poor reputation. Without understanding the full scope of crypto, with both its positives and negatives, institutions face a hurdle to gaining buy-in from key stakeholders and investors. If stakeholders (and end users, if relevant) have a better education around crypto and the blockchain, there is both a reputational boost and an increase in safety. 

But how to solve the problem of education? It will require the investment of both time and money for institutions to ensure that everyone involved in the process is up to speed. There will be differing levels of comprehension or the need for comprehension, but everyone in the chain will need to have some touch points where they can access necessary help and resources. It may also require strong investor relations work, to ensure that the level of misconceptions do not stifle investment in innovation. Education for key stakeholders must be clear and simple, as well as practical and interactive. Risk transparency is important, as well as keeping everyone updated on new changes. There is no shortage of expertise in crypto out there in the world, so institutions which draw on the very best will benefit greatly.

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Reputation 

Reputation management is understandably a concern for institutions looking to incorporate crypto and digital assets. The reputation of crypto has come on in leaps and bounds since the early days, in which it had a Wild West, dangerous perception closely associated with criminality. People now know of crypto as not inherently dangerous, but it is still seen by many as complicated and volatile. This lack of complex understanding, as well as sustained negative media coverage, can cut a huge amount of the population off from any interest in crypto. 

By enhancing education through in-house initiatives, personal experience and building strategic partnerships with existing reputable financial entities, institutions can clear misconceptions and enhance a more positive image of crypto. These solutions to reputation management are key for institutions to get investor buy-in, pave the way for innovation and protect users from misinformation.  

Reputation is also intrinsically linked to safety protocols and technology. By being up-to-date and transparent about those, institutions can more completely guarantee robust protection for their assets, and thereby their reputation. This is another area in which the right partnerships are beneficial: collaborating with reputable crypto entities means that incorporating the correct level of tech is easier, more cost-efficient, and has the benefit of being consistently up to date. 

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Two challenges, two solutions

As this blog has demonstrated, education and reputation are both problems and solutions to said problems, both benefiting and feeding off one another. If both are implemented correctly, they can make institutions using crypto a much more secure, innovative environment. Ultimately, the solutions here are dependent on investment, but not necessarily purely financial investment. It requires time, patience, and tapping into the knowledge and history of the existing crypto landscape. With all of these covered, institutions will find be able to access the full benefits of crypto and the blockchain.

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