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According to a recent survey conducted by the Central Bank of Spain, unbacked cryptos and decentralized exchanges are becoming popular in Europe’s cryptocurrency landscape.
Usage Of Cryptocurrency In Europe
On the 26th of April, Spain’s Central Bank released a study that detailed how Europeans and Spaniards are using crypto over the years. According to the survey, Europeans like decentralized exchanges and digital assets not backed by a government, such as BTC and ETH. In addition, the financial agency reported that the number of crypto transactions in the region rose at an accelerated pace over the previous year, reaching about €845 billion, exceeding the trading volumes in the U.S. The report stated that;
Over the last year, the trading volume of crypto assets in Europe reached almost €845 billion, accounting for 25% of the world total, placing Europe in front of Northern America.
European Crypto Users Go For Unbacked Cryptos And Decentralized Exchanges
Those living in Europe are reportedly more interested in utilizing unbacked cryptos, with BTC and ETH accounting for around 60% of total transactions in 2021. The percentage of preference for backed digital currencies was 25%.
However, the European Central Bank (ECB) revealed that 64% of those in Spain prefer to conduct their transactions using DEX. The legal environment encourages individuals to seek alternatives to traditional financial transactions and trading, notwithstanding the success that CEXs such as Bit2me and Binance are experiencing in Europe. Pancakeswap, Uniswap, and other services fill in the gaps left by traditional exchange services.
However, it appears that fraudsters are not interested in using digital currencies, as only 1% of BTC transactions from 2020 to 2021 were linked with crimes such as scams, thefts, and fraud.
Which European Countries Have Crypto-friendly Policies?
According to the survey, France is the most active market in Europe regarding transaction volume, followed by Germany. France’s newly re-elected President, Emmanuel Macron, is among the few pro-crypto leaders in Europe, having been elected in May. During an interview, he discussed the possibility of building a European metaverse in which cryptocurrencies might be controlled without impacting their growth. The President stated that;
“Making our artistic and cultural output available to the public through the construction of a European metaverse is an important part of the process. Because of its applications in concerts, music, art exhibits, and other forms of entertainment, the virtual world has immense promise in the fields of entertainment and culture.”
As a result, France has the potential to be a leader in Europe’s crypto market if President Macron follows through on his pledges to establish a legislative framework that supports the crypto business and encourages development in the Web3 space.