One in 10 euro zone households own crypto currency

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One in 10 euro zone households own crypto currency

A study by the European Central Bank shows that one in ten euro zone households have bought digital currency, with the rich slightly more likely to own some than the poor.

With the market of cryptocurrencies in turmoil, authorities are trying to figure out if gyrations in this relatively new corner of the financial system could burn a hole in their household budgets.

An average of 10% of households in the six countries where the poll is conducted own cryptocurrencies, with the proportion ranging from 6% in France to 14% in the Netherlands.

Nearly 37% of respondents reported owning up to 999 euros $1,065 worth ofcryptocurrencies, with 29% holding between 1,000 euros and 4,999 euros and 13% between 5,000 euros and 9,999 euros. In all countries, the richest 20% of respondents were most likely to own digital coins, but a greater proportion of lower-income households reported owning digital coins than in the middle ground.

Young adult males and highly educated respondents were more likely to invest in cryptocurrencies in the countries surveyed, the ECB said. For financial literacy, respondents who scored either at the top level or the bottom level in terms of financial literacy scores were more likely to hold cryptoassets. The ECB said assets were unsuitable for most retail investors and urged European Union authorities to approve new rules on criptocurrencies as a matter of urgency. The data, released for the first time on Tuesday, was cited in an article published as part of the Financial Stability Review by the European Central Bank.

The Consumer Expectations Survey, which was launched in 2020, is carried out monthly in Belgium, France, Germany, Italy, the Netherlands and Spain. It is still in pilot mode and results are not published in full by the ECB.