Cryptocurrency Adoption Accelerates in Q2 off the back of global financial market concerns – says Luno

  • One in five people in the UK now own a cryptocurrency and 37% say that they are very interested in buying crypto
  • Cryptocurrency ownership across Europe has increased by close to 5% from the end of February
  • Over two-thirds of crypto holders in the UK said they acquired it for investment purposes, a significant increase from Q1 (55%)

 Luno, 24th April, London – The latest research commissioned by leading global cryptocurrency company Luno has shown that for the first time in the UK 20%, one out of five, people questioned now own a cryptocurrency.  In Europe, the level of ownership has increased by 5% (to 24.75%) from Q1 to Q2.

Commenting on the increased uptake of cryptocurrencies, Marcus Swanepoel, CEO and Co-Founder of Luno said:  “The volatility associated with the main cryptocurrencies, Bitcoin and Ethereum, had put off many investors and businesses. The recent stability in the coins, aligned with the increased general market uncertainty over issues such as the global trade wars and Brexit has made crypto a logical choice for firms and individuals looking to reduce their levels of exposure The research has shown that for Brexit area investors seeking alternative investment methods, cryptocurrency is becoming an attractive option.  Adoption significantly increased, according to data collected in March 2019, as Europeans moved some of their funds away from the Euro and Sterling into digital currencies.  These were used for managing payments (22.5%), shopping online (31.25%) or as part of an investment portfolio (58.25%). In the UK, 67% of buyers bought crypto as an investment, a significant increase in the Q1 survey of 55%.

“At Luno we can also see increased confidence across Europe amongst potential crypto investors as France pushes the European Union to adopt a regulatory framework on cryptocurrencies similar to the guidance they have implemented at a national level.  Even with this ‘Brexit’ effect, Europe is still a long way behind other countries in adopting Bitcoin, Ethereum and other coins. added Mr Swanepoel.

Following the progress made in France, the European Commission has recently launched a feasibility study on how to regulate the cryptocurrency markets, though no legislation is expected at least until late 2019. Whilst the majority of European cryptocurrency holders said they acquired the digital assets for investment purposes, Q2 saw a great increase in individuals in Europe using cryptocurrency for online shopping with France dominating the adoption with a great increase from Q1 (26%) to 35% in Q2. Over half of individuals in Italy (66%) 37% in the UK and 40% in France, said they would like to use cryptocurrencies to pay for things in stores and online.

Mr Swanepoel, concluded: “The global uncertainty currently impacting traditional financial markets shows the benefits of alternative investment systems which allow for secure, easy and efficient payments and investment options.  It is the perfect time for everyone to look at how the world views and uses money, and to consider the real benefits of decentralised currencies.”

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