Patrick Hansen, Director of Strategy and Policy for Circle Internet Financial’s European operations, has underlined Europe’s predilection for embracing the crypto. The Circle executive explained that with an environment that’s not just “tolerant” but “proactive” in adopting digital currencies, Europe might hold the key to improving its “declining” economy.
Favorable Regulatory Environment
Hansen emphasizes Europe’s tax structures and detailed regulatory frameworks for cryptocurrencies as key contributing factors in achieving that goal. These elements make the region a thriving hub for businesses and investors eager to explore the digital currency landscape.
Europe is home to the
✅highest number of #Bitcoin & #Ethereum nodes
✅largest absolute number & relative share of on-chain activity
✅the most comprehensive crypto-regulation globally (MiCA)
✅two thirds of global industry jobs
✅50% of venture funded crypto projects globally… pic.twitter.com/Hqh67uTGxK
— Patrick Hansen (@paddi_hansen) July 2, 2023
Moreover, Europe’s regulatory endeavors include the introduction of the Markets in crypto Assets (MiCA), touted as the most “exhaustive” global crypto regulation. Launched on May 31, 2023, this regime could streamline the growth of the crypto sector in Europe.
Focusing on the employment landscape, Hansen reveals a statistic indicating that Europe accommodates two-thirds of the world’s cryptocurrency jobs. Coincub’s data aligns with this assertion, documenting Europe’s 90,837 crypto jobs compared to North America’s 12,833. Even though there has been a 39% decline in total crypto jobs in Europe since Q4 2022, the region still maintains a significant lead.
In addition to a thriving job market, Europe excels in its infrastructural support for crypto. The region, specifically Germany, hosts the majority of Bitcoin and Ethereum nodes globally, exceeding even the United States. Hensen asserts that “Europe’s commitment” to digital sovereignty and decentralization is apparent in its “strong” on-chain activity, which surpasses other regions.
The Potential For European Innovation
Hansen asserts that Europe’s crypto climate could catalyze broader economic rejuvenation. With tax regimes in countries like Germany, Portugal, Switzerland, and Belgium offering a 0% rate for crypto investors, Europe encourages investment.
Related Reading: European Commission Approves New Tax Directive For crypto Companies
The region is home to half of the venture-funded crypto projects worldwide. Hansen noted:
Europe actually has the chance to lead a major innovation and revive its declining economy. We should better seize this chance!
Notably, Hansen’s statement reflects a widespread sentiment that the intersection of technology and finance holds the potential for an economic turnaround, and Europe seems well-placed to harness this opportunity.
The chart below shows that the crypto market has been in an upward trend in the past day. Over the past 24 hours, the global crypto market has surged by 1.7%, with an overall market value of $1.261 trillion.
Featured image from Unsplash, Chart from TradingView