Cryptocurrency has not been immune to the recent global economic instability. Yet, in Central, Northern and Western Europe, it seems to have emerged as a safe-haven surpassing the US and Asia to become the largest crypto economy.
The continent has emerged as the world’s biggest crypto economy and a suitable habitat for digital assets according to research by New York-based blockchain data provider Chainalysis.
The region has received over $1tn (£734.4bn) worth of cryptocurrency in the last one year. The European crypto market, backed by large institutional investments has also grown significantly, hopping from $1.4bn to $46 3bn between July 2020 and June 2021.
“The region in general – Central, Northern, & Western Europe – has the biggest cryptocurrency economy of any region that we study, surpassing East Asia following China’s regulatory crackdowns earlier this year,” Chainalysis’ Director of Research Kim Grauer said.
With governments around the world looking to regulate cryptocurrencies because of their potential for illegal activity, Europeans are turning to them to guard against the volatility that has plagued other financial products.