The adoption of cryptocurrencies has seen a significant decline globally for several months, and most rich countries have reversed their adoption, while low-income countries are witnessing a significant rise in the level of crypto adoption, with India, Vietnam and Nigeria occupying the top three, ahead of the United States, according to a report published by the website "ChinaAlysis".
The report reveals that the adoption of cryptocurrencies has developed more rapidly in the countries of Central Asia and South Asia, where 6 countries in this region of the world occupied the top ten, in the ranking of 154 countries.
The world is facing inflation rates unprecedented in decades, and as a result, central banks, led by the Federal Reserve, have begun to adopt tight monetary policies, most notably increasing interest rates, especially on government bonds, and in this situation that creates uncertainty, investors are looking for safe havens from inflation, one of which is digital currencies.
As for the approach adopted in the report on cryptocurrency adoption globally, the company chose to make the classification according to its adoption in the base, in other words, it focused on countries where the grassroots population devotes the largest share of its resources to cryptocurrencies.
India in Leadership
India and Vietnam occupy the top two places in the rankings, and India in particular outperformed all countries in almost all indices, except for a peer-to-peer trading volume.
Vietnam and the Philippines topped the rankings in third and sixth places respectively, while Vietnam ranked first and the Philippines ranked second respectively in last year's report, and India ranked fourth, ahead of the United States, which moved up one place this year, to occupy fourth place.
Nigeria, Africa's most populous country, ranked second in the 2023 Chinaalysis ranking, ahead of the United States and Ukraine, where the country is known for its relatively advanced level of development in the technology sector.
Last year, Nigeria was not in the top ten, occupying eleventh place, as this move comes as an affirmation of support for developments in the crypto services sector, since last March, Nigerians can buy cryptocurrencies through the bank instantly using their smartphones, and this has certainly strengthened the adoption of crypto adoption at the grassroots level.
It is good to know that India, with a population that exceeds that of Europe and the United States combined, is a pioneer in the adoption of cryptocurrencies at the grassroots level, but despite this advantage, the legislation in force in India is still very unfavorable for the development of cryptocurrencies.
Thus, although popular adoption in India is higher than in other countries, the absence of regulatory support prevents mature and decisive adoption of cryptocurrencies.
The five revolutionary measures for the cryptocurrency sector announced by India at the G50 summit are expected to come into effect soon, as this will be a new dawn for the cryptocurrency sector in this country, which brings together nearly <>% of the world's crypto users.
It is surprising to see low-income countries topping the global rankings of cryptocurrency adoption, while wealthy countries lag behind, and several voices have been raised on this issue after the report's publication.
Bitstamp, Europe's first cryptocurrency exchange, has taken a keen interest in this and tried to explain why, revealing that people in poor countries prefer to turn to cryptocurrencies when they have no confidence in their government authorities, and they also make this choice when the traditional financial infrastructure that exists in countries does not enhance access to services.
Therefore, the role of cryptocurrencies in cross-border money transfers has made them more attractive in these countries, in addition to the ability of some cryptocurrencies to act as a store of value in the context of inflation, and the volatility of some local currencies.
The report concluded by warning that the classification of "Chinalysis" does not take into account the volume of transactions nor the speculative aspect in the valuation of the country, as according to these criteria, rich countries such as the United States of America, England, Japan, and Canada will undoubtedly be at the top of the ranking.