HomeNews StoriesBlockchainEuropean Banks Are Slow to Embrace Crypto Despite Interest: Report

European Banks Are Slow to Embrace Crypto Despite Interest: Report

Date:

  • European banks are underestimating the demand for crypto from users.
  • Lack of knowledge and resources is slowing crypto adoption in banks despite rising interest from investors. 
  • Banks are at risk of losing customers to crypto firms as MiCA regulation clears the way for digital asset services.

European banks and financial institutions may not fully grasp the growing demand for cryptocurrency services. Crypto investment platform Bitpanda has conducted a new survey revealing a big gap between investor adoption and institutional perception. For the survey, 10,000 retail or business investors in 13 European countries were interviewed. 

https://twitter.com/CryptoBeeInfo/status/1905231235753877541

According to the report, 40% or more of business investors already consider holding cryptocurrencies. Moreover, another 18% of them plan to invest in the short term. However, only 19% of surveyed financial institutions said their clients were strongly demanding crypto products.

The findings of the survey suggests that banks may be underestimating the interest from investors. While financial institutions are acknowledging the growing relevance of digital assets, too many of them are slow to bring the crypto services to their clients. 

Currently, 80% of them are willing to provide such products but only 19% actually do. Some banks, however, are starting to adapt. 18% of surveyed financial institutions are looking to expand their crypto service offerings specifically with regards to crypto transfers. 

Challenges Slowing Adoption

The main barriers to European banks adopting the crypto services are not external factors, such as regulatory uncertainty. The study instead found that the main obstacles are internal issues, such as the lack of resources and knowledge. While many institutions acknowledge the possibility of digital assets, they find it difficult to put in place the necessary infrastructure. On the other hand, investors are seeking more ways into cryptocurrencies.

The survey further finds that 27% would rather invest in cryptocurrencies using their traditional bank, while 14% would rather choose a crypto exchange. This signals that there are many investors that still place faith in banks for financial services and that would be more willing to invest in digital assets if banks offered the option. The trend is slightly different among business investors. It reveals that 36% of business investors favour exchanges as the most reputable option.

On the other hand, traditional banks are the third most preferred option, with 27% of business investors opting to use them for crypto investments. According to these figures, business investors are very much comfortable with the use of exchanges, while retail investors still like their traditional banking services when it comes to digital assets. 

Potential Risks for Banks 

If banks and financial institutions do not swiftly integrate crypto services they risk losing huge inflows of revenue to their rivals. Crypto native company and exchange services continue to grow and attract both retail and business investors. Those who fail to adapt could find themselves losing customers to these alternative platforms.

The European Union’s Markets in Crypto Assets Regulation (MiCA) introduction introduces a clear framework of regulation for banks into the crypto space. With this clarity, it is easier for financial institutions to launch new crypto related services without any barriers. Bitpanda’s deputy CEO, Lukas Enzersdorfer-Konrad said financial institutions that hesitate may lose the competitive edge. While some banks see the need for it, others are undecided and could be at a disadvantage in the long run.

Austin Mwendia
Austin Mwendia
Austin Mwendia is a dedicated crypto journalist with over three years of experience covering blockchain technology, market trends, and decentralized finance. He has contributed to multiple reputable media outlets, delivering insightful analysis and in-depth reporting. Driven by a passion for innovation, Austin is committed to educating readers and promoting the widespread adoption of blockchain and DeFi solutions.

Subscribe To Our Weekly Picks!

- Join over 76,000+ subscribers

- Weekly picks delivered to your email

- It's free to subscribe!

Recent Altcoin News

SPONSORED ADVERTISEMENTspot_img

Latest News Stories

Tariff Issues Could Be Good for Bitcoin Says Arthur Hayes

Arthur Hayes sees Bitcoin gaining from US tariffs despite global economic shakes.Hayes says tariffs...

Bitcoin and Ethereum ETFs Hit by Outflows Amid Trump Tariff Shock

U.S. spot Bitcoin and Ethereum ETFs continue their downtrend, recording significant outflows on April...

The Odds of a US Recession Are Now Sky-High —What Does This Mean for...

Recession odds soared on prediction markets after Trump’s tariff policy this week.On PolyMarket, recession...

Ethereum’s Pectra Upgrade Set for May 7—Here’s What to Expect

Ethereum’s Pectra upgrade, combining Prague and Electra, is set for May 7 this year.Pectra’s...

South Korea Eyes Foreign Crypto Investors with AML standards

South Korea's FSC may allow foreign crypto investors if exchanges meet AML standards.Strict KYC...