Source: Cointelegraph
Original: “As the British Embrace Crypto, Businesses Must Catch Up to Stand Firm”
Opinion Author: Uldis Tēraudkalns, Chief Revenue Officer of Paybis.
In the UK, the number of people owning cryptocurrency has increased from 5 million to about 7 million, with a clear shift towards sustainable and pragmatic use cases. If adoption rates continue to grow, the UK digital asset industry will attract millions of new users in the coming years, thereby stimulating demand for simplified capital flows between the crypto economy and the fiat economy.
As cryptocurrency becomes mainstream in the UK, British businesses must provide crypto solutions for their customers; otherwise, they will fall behind in the fierce competition.
The latest research from the UK Financial Conduct Authority (FCA) shows that the acceptance of digital currencies among the British public is astonishing. 12% of adults in the UK own cryptocurrency, approximately 7 million users—significantly up from 10% (5 million) in 2022.
The average value of cryptocurrency holdings has risen from £1,595 to £1,842 ($2,334). The proportion of investors holding larger asset amounts has also increased significantly: 19% of survey participants reported holding between £5,001 and £10,000 in cryptocurrency, compared to just 6% two years ago.
These data points frequently appear in news articles reporting on the FCA's research. However, a deeper exploration of this 89-page report reveals more thought-provoking facts. For instance, the motivations for purchasing cryptocurrency have shifted. During the period from 2021 to 2022, speculative gambling was the primary reason, but it has now been replaced by strategies that view cryptocurrency as part of a broader investment portfolio. Notably, millions of users who initially entered the market for gambling reasons have stayed for other reasons—between 2021 and 2022, the rate of digital asset ownership jumped from 4% to 10%.
The shift towards investment purposes indicates that the British are adopting a more sustainable and strategic approach to cryptocurrency, increasingly viewing it as an asset class with long-term value. Data on stablecoin holdings further supports this view: 18% of respondents hold Tether (USDT), up from just 6% three years ago, which not only balances portfolios but also expands the range of use cases for the British public.
Last but not least, the proportion of people purchasing cryptocurrency for political or ideological reasons dropped from 16% in 2021 to 9% in 2022, remaining stable in 2024. This data point suggests that people are increasingly buying cryptocurrency for pragmatic reasons rather than out of belief in decentralized philosophy and values.
The FCA's research emphasizes that the demand for crypto assets in the UK has significantly risen, no longer limited to early adopters, tech enthusiasts, and "gamblers." A broader demographic is exploring the potential of cryptocurrency for investment, payments, and remittances. They are pursuing lasting value rather than immediate profits—seeking sustainable cryptocurrency use cases that are often closely integrated with the fiat system.
The FCA study clearly shows that UK users have a distinct need for bridges between cryptocurrency and fiat currency. In 2024, 43% of digital asset holders reported having converted cryptocurrency to fiat, up from 33% in 2022. 13% of users indicated that they used cryptocurrency to purchase other financial products. One in five British cryptocurrency holders has used it to buy goods and services.
Each wave of cryptocurrency adoption brings more users who view digital assets as tools for everyday tasks. These tasks often involve fiat currency—thus, the demand for solutions that can seamlessly integrate cryptocurrency and traditional financial systems is growing. Mainstream users are pursuing convenience, and smooth conversion between the two types of currency has become a necessary condition for providing that convenience.
From a broader perspective, we can see that cryptocurrency has become an integral part of the UK and global economy. Traditional financial institutions are integrating cryptocurrency services, and central banks, including the Bank of England and the European Central Bank, are actively exploring digital currencies.
The adoption trend in the UK reflects a widespread global trend towards digital financial solutions, with growing interest also seen in North America, Western Europe, and Asian countries.
The increase in cryptocurrency holdings in the UK has drawn significant attention from the FCA, making cryptocurrency regulation one of the country's top legislative priorities. Recently, the agency released a detailed roadmap, planning to consult on stablecoin issuance and custody starting at the end of 2024, and to continue discussions on trading platforms and decentralized finance in 2025. The final regulatory framework is expected to be officially introduced in 2026.
The adoption rate data in the UK suggests that the number of residents holding crypto assets may significantly increase in the coming years. According to the FCA's research, a large number of users will use cryptocurrency for payments, purchasing goods and services, and converting between fiat and cryptocurrency. Businesses looking to capitalize on this trend should prioritize developing solutions that provide seamless cryptocurrency-fiat transactions to meet users' urgent need for a bridge between the two economic systems.
Companies that ensure accessibility and user satisfaction will not only gain a competitive advantage. As more people embrace cryptocurrency operations, they will lay a solid foundation for their long-term market survival.
The current market environment provides ideal conditions for businesses to join the cryptocurrency wave. On one hand, the cryptocurrency-fiat trading market is set to continue expanding—now is still early enough to enter and capture a significant market share. On the other hand, the infrastructure has matured, capable of providing direct and effective solutions that allow businesses to launch cryptocurrency operations in just a few days. Companies now only need to take this step to potentially become a new driving force behind the growth of the UK cryptocurrency market.
Opinion Author: Uldis Tēraudkalns, Chief Revenue Officer of Paybis
Related: More Spending on Lobbying for Cryptocurrency is Justified
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