The European crypto scene has gained significant traction over the past few years, with a surge in the interest in and adoption of cryptocurrencies and blockchain technology. While the crypto industry is often associated with decentralization, innovation and financial freedom, it is not immune to various political ideologies and influences, and right-wing movements are no exception.

The attraction of cryptocurrencies for right-wing politicians in Europe can stem from several factors. Right-wing ideologies often prioritize individual freedoms and limited government intervention. Cryptocurrencies, with their decentralized nature, offer the potential for financial sovereignty by allowing individuals to have control over their money without relying on traditional financial systems or government regulations. #europe #crypto #BTC #Digitalspace #cryptocurrency

We're used to seeing Europe as a leader in most areas, particularly when it comes to finance and technology. However, this region remains among the outsiders in terms of the number of bitcoin holders. Let's find out why this happened.

DISTRIBUTION OF BTC OWNERS

Bitcoin owners are distributed quite unevenly across the world. Moreover, a higher level of income does not always go hand in hand with more active use of bitcoin. The global average level of digital asset ownership is currently 4.2% - more than 420 million people own or regularly use bitcoin and cryptocurrencies.

According to the map published by TripleA, the region with the largest number of digital asset users is Asia (260 million). This is followed by North America with about 54 million, Africa with 38 million, South America with 33 million, Europe with 31 million, and Oceania with 1.5 million. That is, Europe ranks penultimate in the ranking and is behind not only Asia and North America (which is not surprising), but also Africa and South America.

Of course, a comparison based on absolute figures alone may also not be very objective, given that the total population on different continents varies considerably: Asia - 4.5 billion people, North America - 579 million, Africa - 1.2 billion, South America - 423 million, Europe - 746 million, Oceania - 44 million.

In terms of the percentage of the population that owns bitcoin, we get: Asia - 5.7%; North America - 9.3%; Africa - 3.2%; South America - 7.8%; Europe - 4.2%; and Oceania - 3.4%. So in relative terms, Europe is ahead of Africa and Oceania, but still far behind Asia, as well as the Americas. Moreover, the use of bitcoin in Europe is currently below the global average.

REASONS FOR EUROPE'S LAGGING BEHIND

Можна виділити декілька основних факторів, що перешкоджають зростанню кількості біткоїн-власників у Європі.

Unpleasant regulatory environment

In Europe, there are many restrictions on the acquisition and use of bitcoin, and KYC/AML (identity verification) requirements have become the norm. While governments claim that this approach is aimed at protecting consumers and preventing money laundering, it creates uncertainty and challenges for businesses and individuals who want to use digital assets. The adoption of the MiCA (Markets in Crypto-Assets) law and the promotion of CBDCs (central bank digital currencies) will only exacerbate this trend in the near future.

The illusion of stability of the traditional financial system

Most Europeans believe that banking and other traditional financial institutions are performing their functions quite effectively, so they are in no hurry to actively use alternatives such as bitcoin. However, the crisis of one of the largest Swiss banks, Credit Suisse, and its takeover by UBS, indicates that there are fundamental problems in the European financial system based on the use of partial reserve coverage. Although traditional payment systems such as Visa and Mastercard are quite successful in making fiat transfers, the speed and cost of such services are significantly inferior to the Lightning Network and other second-level protocols based on Bitcoin.

Cultural and educational factors

Europeans traditionally prefer conservative investments and assets with minimal risk. Popular media portray bitcoin as a highly speculative and high-risk asset. A lack of understanding of the difference between bitcoin and altcoins creates a misconception about the likelihood that BTC could fall to zero under certain circumstances. Unlike other regions of the world, there are no specialized Bitcoin universities in Europe and there is a lack of specialized educational programs and events that can increase the general understanding of the situation among the population.

Of course, this is not to say that there are no opportunities in Europe to acquire the necessary knowledge and switch to the Bitcoin standard. In particular, Europe regularly hosts such large-scale Bitcoin conferences as Bitcoin Amsterdam, BTC Prague, Baltic Honeybadger, etc., where you can see and communicate with famous bitcoiners from all over the world. But, as practice shows, this is not enough to maintain global competitiveness for Europe.

Understanding these aspects is also very important for Ukraine in the context of its movement towards the adaptation of MiCA to national legislation. On the one hand, the path of European integration implies the approximation of domestic rules and regulations to European standards. On the other hand, restrictions, digital control, and the promotion of CBDCs contradict the principles of financial freedom and the interests of the majority of the population. In addition, Ukraine is one of the world leaders in the use of bitcoin, and to maintain its global competitiveness, it is necessary to maintain this status.

WHAT'S NEXT

Global trends in bitcoin usage appear to be very similar to the spread of the Internet. Today's use of digital assets corresponds to the spread of the Internet as of 1998. Everyone already knows that in the following years, it became so popular that it reached the vast majority of the population around the world. So, we may soon see the same picture with regard to bitcoin, and the number of digital asset users may reach 1 billion in a few years.

Unfortunately, however, in the absence of systemic reforms and changes in regulatory priorities, Europe's lag will only grow. This applies both to bitcoin use and to other elements of the Bitcoin ecosystem (e.g., mining, where myths about the environmental impact of coin mining are used to impose new taxes and restrictions). For these reasons, the Global South, the Middle East (in particular Dubai) and Southeast Asia (especially Singapore and Hong Kong) are becoming significantly more attractive regions for the industry.

#europe #european #crypto2023

The country of Ukraine has stated that it plans to implement the European Union’s latest cryptocurrency regulations, called Markets in Crypto-Assets (MiCA). The EU has designed these regulations to establish a uniform regulatory structure for cryptocurrencies, including all necessary information

Reas more. https://nftstudio24.com/ukraine-to-adopt-eus-crypto-regulations-for-mica-compliance/

#ukraine #mica #crypto #europe