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Diligent and Silicon Valley Directors’ Exchange Find European Boards lack solid understanding of digital assets but are building competency

Ninety-five percent of boards are actively seeking knowledge on the benefits and risks of blockchain-based digital assets like cryptocurrency and non-fungible tokens (NFTs) according to a new report released today by Diligent, the global leader in modern governance providing SaaS solutions across governance, risk, compliance and ESG, and Silicon Valley Director’s Exchange (SVDX), a non-profit organization offering educational and networking programs to boards of directors.

The report Blockchain Digital Assets: Fad, Disruption or Strategic Driver? reveals how nearly 200 global corporate directors are thinking about blockchain-based digital assets as they pertain to roles and responsibilities in the boardroom. Among other notable findings, the report highlights how well directors currently understand developing trends around digital assets and how important incorporating digital assets into strategy is to their companies’ future global competitiveness. The report is powered by Diligent Institute, the research arm and think tank of Diligent, and SVDX.

“Blockchain-based digital assets have risen on the radars of boards over the last few years, as digital currencies are adopted into mainstream B2B payment flows and central banks across the world,” said Dottie Schindlinger, Executive Director of the Diligent Institute.

“These results tell us that despite the turbulence of the industry, 40% of boards believe understanding digital assets like crypto, including its risks and benefits, will be important to their organizations’ competitiveness in the future.”

Among the top findings:

  • Boards lack solid understanding of digital assets but are building competency. Global and European Directors rated their boards’ understanding of digital assets at only a 4 on our 10-point scale, however 56% (global Directors) and 53% (European Directors) are seeking information on digital assets through their own independent research, and 54% (global Directors) and 76% (European Directors) are getting information from third-party experts or consultants.
  • Many boards view understanding digital assets as a potential competitive advantage for their company. Forty percent of directors feel the ability to understand and strategically incorporate digital assets will be important to their companies’ global competitiveness in the future.
  • The majority of directors believe regulations will soon tighten around cryptocurrency. Seventy-four percent of directors believe that the SEC and similar regulatory bodies will tighten regulation of cryptocurrency in the next 1 – 2 years.
  • Directors don’t believe regulatory hesitancy or hostility towards digital assets will damage global competitiveness. Only 27% of directors believe that perceived regulatory reticence toward digital assets in their region will damage their companies’ global competitiveness.

“The survey results point to an awareness on the part of directors that there is yet a lot to learn and understand about blockchain digital asset implications. That is the good news,” said Daniel Siciliano, Chairman of SVDX. “More challenging is the need for a clearer consistent source of helpful information (strategic and practical) for directors on this topic moving forward.”