The richest country in Europe is coming round to crypto. That’s according to a report by KuCoin which shared some flattering statistics towards the future of crypto in Deutschland.
Notably, 44% of Germans are “motivated to invest in cryptocurrencies to be a part of ‘the future of finance’”; while over a third, “37% of German crypto investors have been trading cryptocurrencies for over a year.”
Cointelegraph had previously picked up on crypto’s impressive and productive year in Germany, but it’s crucial to check the sentiment toward crypto on the ground.
Johnny Lyu, CEO of KuCoin–the company publishing the report–explained to Cointelegraph the state of play of Germany crypto investors:
“Cryptocurrencies are very popular among the supporters of the accumulation strategy, especially among the younger generation. They prefer to save for retirement on their own and diversify their savings through the use of cryptocurrencies.”
Lyu caveats that “despite the high demand for cryptocurrencies among Germans, the country does not yet have specific regulations that unequivocally regulate the use of digital money.”
Indeed, while Germany was the first country “to recognize that Bitcoins are ‘units of value’ and could be classified as a ‘financial instrument,’” according to the report. So far the local regulator has merely had “some success in regulating crypto.”
However, Germany was the first country worldwide to adopt a blockchain strategy and interestingly, Germany’s political position relative to cryptocurrencies came up for discussion during recent parliamentary elections.
For Florian Döhnert-Breyer, managing director of F5 Crypto, “Germany is a role model for other EU countries, whose populations are generally more open to long-term investments.” Furthermore, “As the largest country in the EU with a notoriously risk-averse view of financial assets, Germany has a special role to play.” He adds:
The high number of women interested in crypto is particularly encouraging, as this target group is on average less active in the financial market (e.g. stock market).”
The report states that “69% of crypto investors are men, while women account for 53% of the crypto-curious,” which according to Döhnert-Breyer shows that women are more interested in the future of finance than legacy finance.
Katharina Gehra, CEO & Co-Founder of Immutable Insight also picks up on the changing demographics of crypto investors, “younger demographics show more self-directed and equity-focused investment style and are generally significantly more aware of inflations risks in particular.”
However, the future remains uncertain, particularly regarding the regulatory environment, as “BaFin never tires to warn about the risks.” BaFin is the Federal Financial Supervisory Authority for Germany, responsible for regulating crypto. They recently gave the green light to neobank N26 to launch crypto trading in 2022.
Döhnert-Breyer is“confident that Germany will continue to pursue crypto-friendly legislation,” while BaFin’s recent actions such as approving custody licenses and Bitcoin-based security tokens are promising signs. Germany may not have the same level playfield when “compared to Switzerland, UK,” says Gehra, but“ there is some movement on the legislative side.”
Lyu has the last word:
“Last year, Germany took the first official step towards accepting crypto investments by approving special funds for investing in digital assets. I think the country has established a good bedrock to create a favorable climate for crypto users.”
For more news at Break’n News – click here
Break’n Pics – Click here for Free Stock Photos
GoCoin – Latest Cryptocurrency News and Trading