The survey by ECB revealed that 10% of families in Europe own small amounts of Bitcoin. In the United States, those with incomes higher than USD 100,000 see cryptocurrencies as investments.
Surveys conducted by the European Central Bank (ECB) and the US Federal Reserve (Fed) show the growth in Bitcoin adoption. The European financial regulatory agency stated that investor demand for crypto assets has not stopped rising.
The study by the ECB reveals that up to 10% of families may have Bitcoin and other cryptocurrencies. There is a slight predominance of smallholdings, like the acquisition of Bitcoin below EUR 1,000.
The results indicate that around 6% of respondents confirmed owning more than EUR 30,000 worth of crypto assets. The ECB pointed out that the higher the income, the more likely a family will have crypto assets. They added that low-income households are more likely to hold crypto than middle-income households.
That situation raises the systemic risk with the level of interconnection between cryptocurrencies and the traditional financial sector. The financial institution is also worried that the use of leverage and credit activity will increase.
The ECB believes that the approval of the MiCA bill will help avoid risks and establish rules but says that will not be enough. They also say it is necessary to review regulations to reduce financial stability risks posed by crypto assets.
The above draft law, under discussion since 2020, establishes a regulatory framework for cryptocurrencies. It proposes a licensing regime and a single regulation for member states throughout the continent.
A group of congresspeople recently proposed limiting the use of Proof-of-Work (PoW) cryptocurrencies like Bitcoin (BTC) and Ether (ETH). However, most members of the European Parliament rejected the proposal.
The Interest in Bitcoin Also Grows in the United States
A recent survey by the Fed shows that the interest in Bitcoin and other cryptocurrencies has also expanded in the United States. According to the study, Americans see Bitcoin more as an investment than payment for goods and services.
In 2021, 11% of respondents preferred to invest in cryptocurrencies, probably as a hedge against the growing inflation in the United States. For example, inflation set a new annual record of 8.5% in April, the highest in 41 years.
While 2% bought goods or paid for services with cryptocurrencies, 1% used them to send money to friends or family.
The study indicates that those holding cryptocurrencies only for investment purposes had disproportionately high incomes. They almost always had a traditional banking relationship and other retirement savings.
Of those who used cryptocurrencies to invest, 46% had an income of USD 100,000, while 29% had an income below USD 50,000. Almost 6 in 10 adults using crypto assets for transactions had an income of less than USD 50,000.
The growing use of cryptocurrencies has also led the US government to issue various regulations for the sector, as announced by president Joe Biden.
The government has ordered federal agencies to assess the risks and opportunities posed by cryptocurrencies. That includes their impact on the US national security and economy.
By Alexander Salazar
