Despite the opacity that surrounded the emergence of cryptocurrency in 2008, crypto adoption is growing across the world— Spain included.
There are more than 300 million crypto owners globally. According to a recent report by crypto firm Crypto.com, the number is expected to surge to one billion by the close of 2022, according to a recent report by crypto firm Crypto.com.
Different reports share differing insights about crypto adoption in Spain.
A report by TrippleA puts Spain's crypto adoption rate at 2.5%. This represents an absolute number of about 1.1 million crypto owners in the country.
Another report by Binance shows that about 3% of Spaniards finance their crypto purchases using debt. The same report suggested that the main overarching goal for investing in crypto is financial independence.
Spain ranks third globally in the number of Bitcoin ATMs (BATMs), behind the USA and Canada.
There are 210 BATMs presently, with the highest numbers are in the cities of Madrid and Barcelona.
Cryptocurrency Adoption in Numbers
In a deviation from the study by TrippleA that was carried out in early 2021, a study by Finder released in late 2021 discovered that crypto adoption rates now stood at 12%. About 2,001 respondents were involved in the survey.
As expected, Bitcoin was the most popular cryptocurrency among the respondents.
Bitcoin leads the adoption rates at 5%. Ethereum and Bitcoin Cash came in second at 2%. Ripple and Litecoin came in third, both at 1%.
Regulatory Agencies Influence on Crypto Adoption in Spain
Regulatory agencies in Spain appear to be restrictive on businesses that involve blockchain technology except those that involve those cryptocurrencies— despite the fact that the technology is a key component in crypto.
Apart from cryptocurrencies, blockchain technology has a variety of use cases.
A report by IDC shows that 11% of businesses in Spain have adopted blockchain technology.
Larger businesses account for 46% of total adoption rates.
The government has provided sandboxes for businesses to test their blockchain applications. While there are no existing laws on buying cryptocurrencies in Spain, crypto trading is taxed.
Spain’s tax offices sent about 15,000 obligatory tax letters to cryptocurrency traders.
In 2018, the Bank of Spain declared ICOs and cryptocurrencies as highly speculative and risky investments.
However, the government seems to be softening its stance on crypto adoption. Instructions were published by the Bank of Spain in late 2021, establishing how crypto providers can get approval to operate in the country. Bit2Me was the first crypto exchange to be approved in February this year.
The National Securities Market Commission(CNMV) has recently stated that cryptocurrencies and related technologies offer a chance for the country to modernize and galvanize its financial sector.
The CNMV has also moved in to rein on crypto advertisements— requiring all adverts to be balanced and impartial, stating the risks. Crypto providers must also notify the regulator of adverts targeting over 100,000 people.
What Spurs Crypto Adoption in Spain?
A survey conducted in 2020 by BitFlyer across Europe found that 68% of Spaniards believed that Cryptocurrencies will still persist through the next decade. This crypto confindex index shows that people are ready to invest in crypto because they believe it will be there for the long term.
The Spanish national football team launched a fan token powered by a blockchain platform known as Bitci. The team has a massive following across the country, with popular stars leading the team.
The deal was agreed on in May 2021 and is likely to influence the number of people who adopt cryptos in the country.
Spain Leads in Crypto Awareness in Europe
According to a report done by Coinbase, Spaniards lead in crypto awareness Europe.
Approximately 80% of the respondents in Spain were aware of digital currencies.
The research found a strong correlation between crypto awareness and ownership. Spain is ahead of other countries such as the UK at 66% and the Netherlands at 64%.
