The ECB considers that virtual currencies pose a risk to financial stability if their markets continue to grow.
Which tenth household in the eurozone owns bitcoin or other virtual currencies, European Central Bank (ECB) said on Tuesday research.
According to a survey of consumer expectations, an average of 10% of households in the six surveyed eurozone countries own virtual currencies. The share varies from 6% in France to 14% in the Netherlands.
About 37% of respondents said they owned virtual currencies worth less than € 999, 29% worth between € 1,000 and € 4,999 and 13% said they owned between € 5,000 and € 9,999. The rest had invested more than 10,000 euros in virtual currencies.
In all survey countries, the share of households with virtual currencies was higher in both the highest and lowest earning households than in middle-income households.
“On average, young men and highly educated respondents were most likely to invest in virtual currencies,” the study writes.
According to the ECB’s survey, respondents who performed either well or poorly in financial literacy were very likely to have funds in virtual currencies.
ECB has long outlined that virtual currencies are an unsuitable investment product for most retail investors.
Governor of the Central Bank Christine Lagarde said in a speech in the Netherlands on Sunday, the news agency AFP said the value of virtual currencies is zero and advised investors not to invest in them.
The ECB’s monthly consumer survey is conducted in Belgium, France, Germany, Italy, the Netherlands and Spain. The survey has been conducted since 2020.
In its semi-annual financial stability report published on Tuesday, the ECB considers that virtual currencies pose a risk to financial stability if the virtual foreign exchange market continues to grow.
Virtual currency prices have fallen sharply in May. Underlying the dive is the collapse of TerraUSD, the so-called stable currency.
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