Research by the European Central Bank reveals that 1 in ten eurozone households bought cryptocurrencies.
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- 10% of eurozone households hold cryptoassets, European Central Bank reveals.
- Not only wealthy Europeans own: lower income citizens also own crypto.
- Most crypto owners have less than 5,000 euros (USD $5,355).
An investigation published today May 24 by theBanco Central Europeo (BCE) indicated that one in ten households in the euro area had purchased cryptoassets as a Bitcoin. Interestingly, the publication appears one day after the Reserva Federal The US Federal Reserve released its annual report, which examines the financial movements of the citizens of that country. For the first time cryptocurrencies were included in it and it comes to a conclusion similar to that of the ECB: according to this report 12% of Americans own crypto . A slightly higher percentage (although calculated on individuals, not households).
Informe of the Central European Bank
But let’s detail the shapelessness of the ECB :
The report, entitled “Deciphering financial stability risks in cryptoasset a cryptoasset is any digital asset that uses cryptographic technologies to maintain its operation as a currency or decentralized application. markets.” is signed by Lieven Hermans, Annalaura Ianiro, Urszula Kochanska, Veli-Matti Törmälehto, Anton van der Kraaij and Josep M. Vendrell Simón. In the introduction to the same he states:
“The stellar growth, volatility a statistical measure of dispersion of returns, measured by using the standard deviation or variance between returns from that same security or market index. and financial innovation currently seen in the cryptoasset ecosystem, as well as the growing participation of institutional investors, show how important it is to gain a better understanding of potential risks cryptoassets could pose to financial stability. if trends continue on this trajectory. Systemic risk increases in line with the level of interconnectedness between cryptoassets and the traditional financial sector, the use of leverage money that a trader borrows from a brokerage, enabling them to gain far greater exposure to a position than what their capital allows. and lending activity. It is important to close refers to the closing price; similar to the same term used in stock trading. regulatory and data gaps in the cryptoasset ecosystem to mitigate such systemic risks.”
¿Amenaza?
The report further states that the risks to financial stability in the euro area from cryptoassets were considered limited in the past. However, now that the market has evolved there are greater risks, and it exemplifies with the recent fall of TerraUSD , which in his opinion demonstrates “which are not as stable as their name suggests and cannot guarantee their linkage at all times”.
To this he says: “After a deep dive into cryptoasset leverage and crypto-loans, we conclude that if the current trajectory of growth in the size and complexity of the cryptoasset ecosystem continues, and if financial institutions become increasingly involved with cryptoassets, then – assets will pose a risk to financial stability”.
Demand has increased
Según el documento del BCE, la demanda de cripto, tanto de particulares como de inversores institucionales en Europa también ha aumentado. Refiere a un estudio hecho por F idelity Digital digital technologies are these electronic tools that have the ability to generate, store or even process data. Asset which revealed that 56 % of European institutional investors surveyed have some level of exposure to digital assets (up from 45 % in 2020) and their intention to invest investing is when you put money in a financial scheme with the intent of making a gain. is also trending upwards. “ One reason could be that the measures taken by public authorities may have been interpreted as an endorsement of cryptoassets, although the latter remain largely unregulated.” says the ECB report.
He adds that, for example, from July 2021, German institutional investment funds can invest up to 20% of their holdings in cryptoassets. “This is further aided by the increasing availability of derivatives and crypto securities on regulated regulation is when something is controlled by a specific set of rules. exchanges, such as futures, exchange-traded notes, exchange-traded funds and OTC oTC, or ‘Over The Counter’ is trading that happens directly between two parties, with no exchanges or trading platforms involved. exchange-traded trusts, which have grown in popularity in recent years in Europe and the United States.”
Añade: “These products, along with clearing facilities, have made cryptoassets more accessible to investors, as they can be traded on traditional exchanges, and the end user no longer has to deal with the complexities of custody custody is a financial institution's legal capacity to keep and preserve financial assets for its clients to avoid asset theft or loss. and storage. However, the European cryptoasset management landscape is still relatively limited and hosts only 20% of the total global cryptoasset funds in terms of head office location.”
Investor landscape in Europe
The report goes on to explain the situation of retail investors in Europe. “who represent a significant portion of the cryptoasset investor base.” Provides the recent results of the Consumer Expectations Survey (CES) ECB survey for six major euro area countries, which revealed that up to 10% of households may own cryptoassets. The countries surveyed were: Spain, Belgium, France, Germany, Italy and the Netherlands.
It says that the majority of cryptoasset owners reported holding less than €5,000 (USD $5,355) in cryptoassets, with a greater prevalence of smaller investments (under €1,000) in this group.
Specifically, 37% of respondents reported having cryptocurrencies worth up to €999 ($1,065), while 29% had between €1,000 and €4,999 and 13% had between €5,000 and €9,999.
At the other end of the spectrum, around 6% of cryptoasset owners confirmed that they had more than €30,000 (around USD $32,000) in cryptoassets.
“Looking at respondents’ income quintiles, the pattern is largely U-shaped: the higher a household’s income, the more likely it is to have cryptoassets, and low-income households are more likely to have cryptoassets than middle-income households.”
Need for regulation
On average, young adult men and highly educated respondents were more likely to invest in cryptoassets in the countries surveyed. With respect to financial literacy, respondents who scored in the top or bottom tier in terms of financial literacy scores were most likely to own cryptoassets.
On the subject the ECB argues:
“As this is a global market an area or arena, online or offline, in which commercial dealings are conducted. and therefore a global problem, global coordination of regulatory measures is necessary. Based on the developments observed to date, cryptoasset markets currently show all the signs of an emerging risk to financial stability.”
The president of this body, Christine Lagarde, has reiterated on many occasions about this need for regulation. In recent statements, she said that in her opinion the crypto “ are worthless”. , pero acknowledged that one of his sons is an investor in them.
Sources:BCE , Finbold, archivo
Version of DiarioBitcoin
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