10% of European households invest in cryptocurrencies

In Europe, one in ten households owns digital assets. But a third of them are small investors. Proof that the interest in cryptocurrencies is there, but the attitude of consumers shows a certain reluctance in the absence of better regulation on this market which is not yet very well protected but which is no longer however perceived as a nebula, just like the far west, where losing your money or having it hacked is sometimes commonplace.

According to a recent survey by the European Central Bank, one in ten households in the eurozone owns a cryptocurrency such as Bitcoin or Ethereum. However, a third of cryptocurrency investors say they hold less than 1,000 euros in digital assets.

While a regulation on cryptocurrencies is in full discussion in the European Parliament, the European Central Bank reveals new figures on cryptocurrency holders. The ECB survey focused on around 10,000 consumers from six countries: France, Germany, Italy, the Netherlands, Spain and Belgium. On average, in the eurozone, one in ten households owns cryptocurrencies. It is in the Netherlands that households hold the most (14%) ahead of Spain (12%), Italy (12%) and Belgium (10%). Germany and France are below the average with, respectively, 9 and 6% of households holding cryptocurrencies.

A growing popularity

For the cryptocurrency industry, this is rather positive news that demonstrates the growing popularity of these digital assets. However, the amount allocated by consumers is actually quite low. More than a third (37%) of people who say they own cryptocurrencies hold less than 1,000 euros, and 29% hold between 1,000 and 5,000 euros, while 13% hold between 5,000 and 10,000 euros in digital assets. Some 6% of Europeans in the euro zone have more than 30,000 euros in cryptocurrencies.

Households most likely to own cryptocurrencies are those with the highest income. In the same vein, it is young male adults with a high level of education who are most likely to own these digital assets. In a few years, cryptocurrencies have experienced real growth in popularity, in particular thanks to exchange platforms that make it easy to buy and sell these assets. Yet, and rightly so, many voices are concerned about the lack of consumer protection. Indeed, the cryptocurrency market is risky and a simple mistake in using his wallet may jeopardize his investment.

When will European regulation come about?

” Cryptoassets are not suitable for most retail investors… who could lose a large amount, if not all, of thesilver that they invested, explains the report. Consumer protection risks include misleading informationthe absence of rights and protections such as complaint procedures or redress mechanisms, the complexity of the products with a sometimes built-in leverage effect, fraud and malicious activities. »

For these reasons, the European Union wants to quickly regulate the market with the MiCA law (Market in Crypto Assets). However, the proposal has still not been approved by EU lawmakers and the regulation cannot be applied until at least 2024. Indeed, it takes 18 months once the proposal is adopted.