Central, Northern, and Western Europe (CNWE) remains a powerhouse in the global cryptocurrency landscape, ranking as the second-largest crypto economy after North America. Between July 2023 and June 2024, the region received $987.25 billion in on-chain value — representing 21.7% of global transaction volume. This surge in activity reflects widespread adoption across retail, enterprise, and institutional sectors, with stablecoins leading the charge.
On average, CNWE countries experienced a 44% year-over-year (YoY) growth in crypto activity. The United Kingdom stands out as the region’s largest crypto market, receiving $217 billion in digital assets and ranking 12th globally in crypto adoption.
Bitcoin Growth and Stablecoin Dominance
While Bitcoin (BTC) remains a cornerstone of the ecosystem, its role in CNWE has evolved. For transactions under $1 million — encompassing both professional ($10K–$1M) and retail (<$10K) transfers — BTC saw nearly 75% growth, the highest among all asset types in the region. Across all transaction sizes, BTC accounted for $212.3 billion, roughly one-fifth of CNWE’s total on-chain inflows.
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However, stablecoins have become the dominant force in CNWE’s crypto economy. For sub-$1 million transfers, stablecoin volume grew **2.5 times faster** than in North America. Across all transaction sizes, stablecoins represented **$422.3 billion** — nearly half of the region’s total crypto inflows.
Monthly average inflows for stablecoins consistently ranged between $10–15 billion, underscoring sustained demand even during post-bull market corrections. Despite declines in May and June 2024, the share of stablecoin transactions increased, signaling strong utility beyond speculative trading.
Over the past two years, stablecoins have consistently outperformed other asset classes. From July 2022 to June 2024, they averaged a 52.36% share of all sub-$1 million transactions by asset type — a clear indicator of their embedded role in daily financial operations.
Euro-Driven Stablecoin Adoption
A key insight from order book data reveals a regional preference: the euro (EUR) accounts for 24% of fiat-funded stablecoin purchases, but only 6% of BTC purchases. In contrast, the U.S. dollar (USD) dominates BTC trading but plays a smaller role in stablecoin acquisition.
This imbalance suggests that CNWE users are increasingly using crypto not for investment, but for payments and value preservation — particularly where traditional financial rails are slow or costly.
Merchant Services Surge in the UK
CNWE hosts the world’s second-largest merchant services market, trailing only Central and South Asia Oceania (CSAO), with growth driven largely by the UK’s 58.4% YoY increase in merchant-related crypto activity.
Stablecoins dominate this space, consistently capturing 60–80% of transaction volume across quarters. Businesses are leveraging them for faster settlements, lower fees, and cross-border efficiency.
Real-World Use Cases: BVNK’s Multi-Asset Platform
BVNK, a global platform enabling stablecoin payments across Europe, exemplifies this trend. The company supports B2B and B2B2C use cases such as:
- Settlements: Fintechs use stablecoins to settle invoices faster and cheaper than traditional banking systems.
- Pay-ins: Consumers pay businesses via stablecoins — whether depositing funds on trading platforms, topping up gaming accounts, or making e-commerce purchases.
- Payouts: Money service businesses (MSBs) send cross-border payments to contractors and employees, especially in high-inflation regions like Latin America.
The average transaction size on BVNK’s platform ranges from $100K to $250K, typically for business settlements. Consumer transactions fall between $100 and $1K, often involving gig economy workers or digital services.
Chris Harmse, Co-Founder and Chief Business Officer at BVNK, notes:
“There’s an emerging market where businesses are starting to see stablecoins as fungible. Much like consumers in Argentina who can’t access dollars, businesses are hamstrung by traditional payment rails. They’re tapping into global trade flows using stablecoins.”
Countries like Argentina — which faced 143% inflation in late 2024 — highlight why stablecoins are becoming essential tools for financial resilience.
Harmse also highlighted new use cases:
- Micropayments to freelancers in the gig economy, where traditional fees make small transfers impractical.
- Nonprofits and NGOs using stablecoin payouts during humanitarian crises to deliver aid faster and more transparently.
Expanding Merchant Infrastructure: Payhound and Gaming Payments
Another key player is Payhound, a Malta-based crypto payment processor serving the online gaming industry. It offers high-volume settlements and trading solutions, with growing interest in its payment gateway.
Elton Dimech, Managing Director at Payhound, believes:
“There will be strong appetite from online businesses to offer innovative payment methods — including crypto — as standard options.”
Malta’s regulatory framework positions it as a hub for compliant crypto innovation, especially in sectors like gaming where speed and reliability matter.
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Real-World Asset Tokenization Gains Momentum
Beyond payments, real-world asset (RWA) tokenization is gaining traction across CNWE. Though still early-stage, projects are emerging in real estate, intellectual property, art, collectibles, and fine wine.
Philipp Bohrn, VP of Public Affairs at Austria-based exchange Bitpanda, observes:
“We’re seeing real momentum in RWA tokenization across Europe — especially in traditionally illiquid markets.”
Societe Generale-FORGE (SG-FORGE), a regulated subsidiary of Societe Generale Group, issued the first digital green bond on Ethereum, enhancing transparency and traceability of ESG metrics. According to Sylvain Prigent, CPO at SG-FORGE, security tokens can democratize access to capital markets while bridging traditional finance (TradFi) with blockchain infrastructure.
DeFi Activity Surpasses Global Average
CNWE ranks fourth globally in DeFi growth, with $270.5 billion in crypto received over the past year — slightly above the global average. The region outpaced North America, Eastern Asia, and MENA in YoY growth.
Decentralized exchanges (DEXes) were the primary driver of growth. Other categories fluctuated:
- NFTs and bridges: Temporary surge in Q1 2024, then returned to baseline.
- Lending: Peaked in Q4 2023 but declined steadily into 2024 without recovery.
Notably, CNWE’s growth rates for bridges (2x) and NFTs (1.5x) exceeded global averages — suggesting stronger developer and user engagement in infrastructure and digital ownership models.
The Future: MiCA Regulation and Market Evolution
The introduction of the EU’s Markets in Crypto-Assets Regulation (MiCA) marks a turning point. While rules for stablecoins took effect in summer 2024, the full impact on Crypto-Asset Service Providers (CASP) will unfold in December 2024.
Experts highlight both challenges and opportunities:
- Philipp Bohrn (Bitpanda): “Regulatory uncertainty and cross-border complexity remain hurdles. But clear frameworks can unlock innovation.”
- Elton Dimech (Payhound): “MiCA will level the playing field — especially for compliant firms competing against loosely regulated peers.”
- Sophie Bowler (Zodia Custody): “Regulation is key to mainstream adoption. It gives institutions confidence to engage.”
The UK, while no longer under EU jurisdiction, is expected to align closely with MiCA. The Financial Conduct Authority (FCA) plans to release its crypto legislative roadmap in early 2025, offering clarity on future compliance timelines.
Some firms may temporarily shift operations to the UK to avoid MiCA’s strict requirements — but this is likely short-lived given anticipated regulatory convergence.
Frequently Asked Questions
Q: Why are stablecoins so popular in Central, Northern & Western Europe?
A: Stablecoins offer fast, low-cost cross-border payments and serve as a hedge against inflation in volatile economies. Their integration into merchant services and B2B transactions makes them ideal for everyday use.
Q: How does Bitcoin usage compare to stablecoins in CNWE?
A: Bitcoin usage is growing — especially for sub-$1M transactions — but stablecoins dominate in volume and frequency due to their utility in payments and settlements.
Q: What impact will MiCA have on crypto businesses in Europe?
A: MiCA will standardize regulation across EU member states, increasing compliance costs but also boosting investor confidence and enabling broader institutional participation.
Q: Are nonprofits using cryptocurrency in CNWE?
A: Yes — NGOs are increasingly adopting stablecoin payouts during emergencies to deliver aid faster and with greater transparency than traditional channels.
Q: Is the UK becoming a crypto haven post-Brexit?
A: While some firms may temporarily relocate there to avoid MiCA, the UK’s upcoming legislation is expected to mirror EU standards, minimizing long-term divergence.
Q: How are real-world assets being tokenized in Europe?
A: Projects focus on real estate, art, collectibles, and green bonds. Institutions like Societe Generale are pioneering security tokens on public blockchains to improve liquidity and transparency.
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