The crypto space has reached a pivotal moment, fueled by President-elect Donald Trump's bold promises for instance mining all future Bitcoin in the USA, breaking into mainstream media. Is this exposure in line with the evolving technological and regulatory landscape? A CVJ.CH survey examines retail interest during all-time highs.
Zurich is located just a few kilometers from Zug, the heart of "Crypto Valley", where Switzerland earned its reputation as a global blockchain hub. Foundations of leading blockchains such as Solana, Ethereum, Cardano or DFinity are based here. But does this pioneering status resonate with everyday people? A survey conducted on the affluent Bahnhofstrasse reveals a striking divide. While some respondents are enthusiastic investors or intrigued by the potential of cryptocurrency, the majority either dislike or remain unaware of the significance of blockchain.
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Crypto companies are growing, but mainstream adoption is still to come
In 2023, Crypto Valley counted 1,290 companies, an increase of 13.6% over the previous year, with almost 40% of them located in Zug, according to CV VC's Top 50 report. Among them are a total of 13 unicorns valued at more than $1 billion. Zurich is second only to Zug in terms of registered companies and has become an active hub in recent years. Overall, the number of companies, employees in the crypto sector, high-profile companies and a favorable regulatory framework make Switzerland a European, if not global, blockchain leader.
Is this reflected in the view of everyday people though? CVJ.CH conducted a survey of 100+ random participants at Zurich's Bahnhofstrasse, an internationally renowned shopping district right next to the Paradeplatz, the heart of Switzerland's banking industry. The survey consisted of 3 simple questions:
- Do you know what cryptocurrencies are?
- Do you think positively or negatively about them?
- Have you personally invested before?
Almost 50% of all surveyed didn't know what cryptocurrencies are. Half of the people that did had a negative view about them. 17% thought positively of crypto but hadn't invested before. And only 12% have bought crypto in the past. Unsurprisingly, none of the people who had invested had a negative opinion. Despite the high adoption throughout financial institutions, mainstream knowledge of the space seemingly remains limited.
From the individuals who invested, all purchases were made through online exchanges or brokers such as Swissquote, Binance, Coinbase, Bybit or Bitget. None of the purchases were made through a traditional bank. This raises the question of whether the novel digital asset offerings launched by PostFinance and the cantonal banks are attractive to the public. In terms of cryptocurrency type, the usual culprits were identified. Ethereum's ETH (29%) leads slightly ahead of Bitcoin (25%). Other currencies mentioned were Solana (SOL), Cardano (ADA), Dogecoin (DOGE), Shiba Inu (SHIB), Polkadot (DOT) and XRP.
Is Zurich an accurate representation of Switzerland's Crypto Valley?
Despite having the second largest number of crypto companies, Zurich's general knowledge of crypto was relatively low for a globally recognized blockchain hub. For comparison, if you look at the numbers from a report published by global payment provider Triple A, Switzerland lags behind countries in terms of cryptocurrency ownership. While the findings of the CVJ.CH survey are in line with a report published by global payment provider Triple A in terms of crypto ownership (11.5%), other countries seem to be adopting faster. The UAE leads the world, ahead of Asian countries such as Singapore, Thailand and Vietnam. Some countries have surprisingly high ownership rates, such as Turkey, Brazil or Saudi Arabia - presumably as a means to combat inflation and corruption.
The survey reveals that crypto mainstream adoption in Switzerland is in its early stages compared to more established countries. Although Swiss investors favor established platforms and cryptocurrencies, traditional banks have the potential to improve their appeal in this space. Switzerland’s position as a blockchain leader provides a robust foundation, but leveraging this status to achieve widespread public integration remains a challenge.
