The crypto market may be down for now, but the European Union (EU) region seems to be leading the race in crypto adoption, with one in 10 households in the EU region owning one or more types of cryptos.
A survey, conducted by the European Central Bank (ECB), showed that more than one-third of the respondents said they owned up to £999 in cryptos. Meanwhile, 6% of respondents said they owned cryptocurrencies worth more than £30,000. The Consumer Expectation Survey was conducted in the Netherlands, France, Germany, Italy, Spain, and Belgium.
Risk and reward
The crypto regulators have often taken a grim view of the markets in the Euro region. Still, the opinion seems to be changing within the European Union pointing out that the likes of Defi could bring increased security, transparency, and efficiency to the financial system.
This was highlighted in the Fidelity survey, released earlier this month, which showed that 56% of respondents have exposure to cryptos. This figure is much higher than the 2020 findings, which highlighted that 45% of the residents in the EU region had crypto exposure.
Experts feel that the increase in crypto exposure also got to do with the increased awareness of the availability of crypto derivatives and offerings and also an increase in crypto business offering their services.
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However, the ECB has said that crypto adoption can be a threat to the region's financial stability.
Overall, the growth of crypto adoption can be considered a piece of good news for the region, though regulators are putting their lens on all deals and are on the lookout for scams and illegal coins.
Globally many countries are mulling regulating cryptos in the near future. That could hit the rate of crypto exposure. In addition to this, the recent crypto crash has dented the investors’ confidence and would think twice before investing in cryptos and stablecoins now.
Therefore, in such a scenario, one must tread carefully before entering the market and should make sure that they don't take a wrong call that may cost them dearly.
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