Recent data reveals that countries in Central and Southern Asia with lower middle-income levels are at the forefront of grassroots crypto adoption.
According to a recent report called the 2023 Global Crypto Adoption Index by Chainalysis, India, Nigeria, and Vietnam are the top three countries when it comes to people using cryptocurrencies. What’s interesting is that these are all lower middle-income (LMI) nations.
This data shows that in the world of cryptocurrencies, regular people are using them the most in Central and Southern AsiaThe Ranking Methodology. It’s happening even though there are some issues with how these digital currencies are regulated there.
The Ranking Methodology
The Global Crypto Adoption Index is a way to figure out which countries are leading in regular people using cryptocurrencies. It’s not just about which countries have the most transactions, which are often the richest countries. Instead, it’s about showing where everyday people are really getting into cryptocurrencies.
This index uses a fancy method that has five parts to rank countries on how much they’re into cryptocurrencies. These parts look at how different cryptocurrency services and ways of using them are being used in a country. Then, they put all this information together to give each country a score between 0 and 1.
The closer the score is to 1, the higher the rank the country gets. This score is also influenced by things like how many people live in the country and how much money they have.
Exploring the Report Further
The blockchain analytics company has shared some key points from its report. It shows that countries in Central and South Asia, as well as Oceania, are doing really well when it comes to using cryptocurrencies. Six out of the top 10 countries in the report come from this region.
Now, when we look at the bigger picture, after the FTX collapse in 2022, there was a drop in how much regular people were using cryptocurrencies worldwide. But there’s some good news too. Countries that are considered lower-middle-income by the World Bank have shown the strongest comeback in people using cryptocurrencies in the past year. In fact, they are the only category where the use of cryptocurrencies is higher than it was before the big boom in 2020.
These lower-middle-income countries are pretty important because they make up more than 40% of the world’s population. And even though the market for cryptocurrencies isn’t doing great globally, institutions in rich countries are starting to use them more.
India is a great example of this. It’s leading the way in this part of the world and is now the second-biggest country for cryptocurrency transactions, beating other big countries. But even though India is doing well, its crypto industry is having a tough time because of strict taxes. Crypto exchanges are trying to cut costs to stay afloat.
On the international stage, India is also making a name for itself by pushing for global rules for cryptocurrencies, especially at events like the G20 Summit. India believes that having these rules is really important.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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