Crypto Europe; How’s it Looking
Cryptocurrency has undoubtedly taken off over the last couple of years and with the COVID-19 pandemic, people had more time to research the topic and get invested in the world of decentralized finance (DeFi). But, just how much has crypto taken center stage, especially in Europe? A report by world-renowned crypto exchange, Gemini, on the Global State of Crypto 2022, sheds light on the million bitcoin question. 29,293 adults in 20 countries were surveyed by the crypto company exploring the consumer adoption of cryptocurrencies. The European countries that took part in the survey are Denmark, France, Germany, Ireland, and Norway.
The survey uncovered that Europeans haven’t quite warmed up to cryptocurrencies just yet. What does that look like in numbers? Around 17 percent of Europeans have taken the leap of faith and dove into the world of crypto; however, the global average adoption rate sits at approximately 23 percent.
Interestingly, the survey also uncovered that 2021 was quite the year for crypto adoption. On a global level, 41 percent of consumers made their first crypto purchase last year. Whilst, in Europe, 40 percent of consumers first dabbled in the world of cryptocurrencies in 2021. Out of the European countries surveyed, Ireland had the highest number of “crypto curious” consumers in the world at 58 percent whilst German cryptocurrency curiosity came in at 53 percent.
Crypto Europe; Thanks but No Thanks
So we looked at all the statistics the survey produced that are pro-crypto but what about the skeptics? Around 35 percent of the European-based consumers said they had doubts about the security of crypto while 34 percent said they didn’t know how to buy or hold crypto. 33 percent also said that they didn’t trust cryptocurrencies.
2021 was a standout year for crypto Europe but numbers suggest that this year could stagnate a bit. Gemini’s survey uncovered that a mere 7% of the European consumers that haven’t bought into crypto yet were planning on doing so. That’s low, shockingly low when you compare it to the global average sitting at 21%. A possible explanation is word of mouth. Only 15 percent of Europeans talk about crypto with their friends whilst global consumers tend to be double as crypto chatty with their social circles (30%). That could also be because Europeans don’t really see cryptocurrencies as the future of money. The percentages (19 percent compared to 38 percent globally) suggest that we’re going to be running around with wallets stuffed with cash and coins for a bit longer.
Despite the skepticism, European consumers play for keeps when it comes to investing in crypto. Ranking highly in long-term conviction or the slightly less formal description, HODLers. Ironically the countries with higher saving tendencies tend to buy and hold cryptocurrencies for the long term. I guess it’s safe to say that old habits die hard. In numbers, 79 percent of German investors, and 75 percent of French investors invest in crypto for the long run.
Crypto Europe; Ones to Watch
Gemini’s survey/report might have shown us that Europe is not quite decided on crypto yet but that doesn’t mean that companies haven’t set up shop here. Let’s take a look at some of the cryptocurrency companies or the ones dabbling in the crypto world that are leading the way. Particularly, companies that are making it easier for European consumers to invest in DeFi.
Bitvavo
Company Snapshot:
Crypto Exchange
Amsterdam, The Netherlands
Founded in 2018
101 to 250 employees
Bitpanda
Company Snapshot:
Digital Investing Platform
Vienna, Austria
Founded in 2014
501 to 1000 employees
Funding Round: Series C
Total Funding Amount: $546 million
Valuation: $4.1 billion
Nuri
Company Snapshot:
Digital Bank
Berlin, Germany
Founded in 2015
251 to 500 employees
Funding Round: Series B
Total Funding Amount: €42.3 million
Glassnode
Company Snapshot:
On-Chain Data and Intelligence Platform
Zug, Switzerland
Founded in 2017
11 to 50 employees
SEBA Bank
Company Snapshot:
Digital Bank
Zug, Switzerland
Founded in 2018
101 to 250 employees
Funding Round: Series C
Total Funding Amount: $246.9 million
By no means does this list cover all the crypto companies paving the way in Europe, there’s a lot more than just five. It will be exciting to see what the above-mentioned and all other crypto companies have in store for European consumers in 2022.
Crypto Europe; Growth meets Regulations
We’ve looked at the rainbows and butterflies side of crypto Europe, but what could stagnate the sector’s growth, regulations. Europe is no stranger to regulation, seriously, we seem to be quite fond of them… there’s a lot. Crypto stands to face regulations in Europe as well which are likely to halt its growth. With companies learning to adjust to regulation and work with it rather than against it, this stint is unlikely to uphold in the long run.
Unsurprisingly, the EU parliament’s Economic and Monetary Affairs Committee is working away at a Markets in Crypto Assets (MiCA) framework, with 23 abstentions. This framework broadly captures the issuance and trading of cryptocurrencies and promises to make it easier for crypto firms to expand throughout the EU’s 27 member states. Now that’s what we’re talking about, positive regulation facilitating growth. How? A “passportable” license that would be valid between countries. In more recent regulatory news (thanks CoinDesk), the MiCA bill is making strides without a Bitcoin limiting provision.
It will be interesting to see how the MiCA framework continues to develop. We can only hope that the bill has the crypto industry’s best interest in mind.
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