Brexit and the Covid-19 The knowledge, purchase and use of cryptocurrencies in the UK have increased.
This has been revealed in a survey of Paxful which focused on the UK financial situation, perceptions on the banking system, Brexit, the Covid-19 crisis and sentiment towards cryptocurrencies.
UK raises awareness of cryptocurrencies after Brexit
The United Kingdom decided to leave the European Union in probably the worst moment in history, with the arrival of Covid-19 to the old continent. It is likely that neither British citizens nor the government could have expected the outbreak of the pandemic and its disastrous economic consequences after Brexit.
In any event, this coincidence of events cost the government £ 14bn a month, undermining the certainties of Her Majesty's people about the stability of the economic system. It is precisely this uncertainty which is pushing citizens towards cryptocurrencies.
In fact, in 2019 a survey by the FCA (Financial Conduct Authority) revealed that 73% of Britons did not know what cryptocurrencies were, and only 3% had bought them.
A year later, the Paxful survey showed very different results: the 20% of UK adults held crypto, an increase of 17%. This also indicates an increase in knowledge of the sector and the willingness to be a part of it.
Since 2018, the British pound has also lost much of its value compared to the US dollar. This would have led to an increase in purchases of cryptocurrencies.
Then came Covid-19, along with Brexit. This coincidence of events would have convinced at least 10% of British citizens to invest in cryptocurrencies, seen as a safe haven.
The survey also reveals that:
- 51% of the adults surveyed are curious or have a neutral sentiment about cryptocurrencies;
- 23% have positive attitudes towards cryptocurrencies;
- 8% are very positive.
At the same time, it seems that British citizens have become extremely distrustful of banks. The Paxful survey reports the following results:
- 42% of those surveyed do not believe that banks act in the interest of society;
- 49% do not believe that banks have been adequately penalized for their role in the 2008 financial crisis;
- 31% believe that banks are playing a similar role in the current crisis.
In short, Paxful points out that in times of crisis there is a lack of confidence in the banking system and in this uncertain scenario, the adoption of cryptocurrencies is growing. So much so that, the survey notes:
- 23% of residents would be open to buying cryptocurrencies if their use were extended;
- 20% would be willing to use cryptocurrencies if they were embedded in everyday technology, for example smartphones and not just traditional banking apps.
The results were commented on by Ray youssef, CEO and Co-Founder of Paxful:
“Being in the UK right now, I have to say that London has the most vibrant crypto community and the deepest fintech talent pool, a hotbed of innovation from every possible angle. With the amount of talent and tech-savvy people here, I'm sure a sharp increase in crypto adoption and use is imminent, and the UK is ready for it. "
The survey was conducted with OnePoll and involved 1,000 people, 44% men and 55% women, between the ages of 18 and 56.