A new survey report from Big 4 auditing firm, PricewaterhouseCoopers (PWC) has shed the spotlight on the level of crypto adoption in Luxembourg, and amongst the conclusions drawn was that investors are “Cautiously Optimistic” about the inherent opportunities in the space.
The PWC survey featured almost all relevant players in the crypto ecosystem including asset managers, fund administrators, and legal personnel amongst others. Of those surveyed, as many as 61% said they are “embarking or planning to embark on a crypto journey,” with some already assessing, developing, or notably providing services bordering on digital assets.
The survey revealed that exactly 18% of the respondents already consider cryptocurrencies as a strategic priority. This figure is against the 39% of respondents whose views about the potential of digital currencies serving as a strategic priority are substantially divergent from the former set.
In all, the data from the auditing firm showed that as many as 43% of stakeholders in the Luxembourg digital currency ecosystem believe this nascent asset will grow to become substantially relevant in the next 2 years.
Luxembourg Still Lags Behind in Crypto Adoption
The basic indication of the PWC report is to showcase how Luxembourg still lags behind other European countries in terms of crypto adoption.
According to those surveyed, as many as 74% of the respondents acknowledged that the demand for crypto assets is generally low or non-existent. While it remains a big deal globally, the inherent challenges that are bedeviling the cryptocurrency ecosystem including energy consumption, anti-money laundering concerns, and “regulatory fragmentation” are still a major bone of contention amongst the Luxembourgers surveyed. However, this is not serving as an impediment to the few that have embraced the new asset class.
In all, the report highlighted the massive growth that the crypto ecosystem has recorded across the board in the past few years with interest in Bitcoin (BTC) growing, pushing its market capitalization by more than $1 trillion at some point in November 2021.
While Luxembourg may currently rank low in relation to its crypto adoption push from both institutional and retail investors, a lot of fund managers are swarming the country, a move that may likely change the status quo in the near future.