The adoption of cryptocurrencies in the world is growing at a rapid pace. The leaders are emerging economies, according to the latest Chainalysis report.
According to Chainalysis, the global cryptocurrency adoption rate jumped 881% within a year, mainly due to active p2p trading and use of bitcoin as a store of value outside of government control.
According to the Global Cryptocurrency Adoption Index, in 2021, countries such as Vietnam, India and Pakistan took the lead by this indicator. In 2020, India and Pakistan were not included in the top 10, and Vietnam took the last line of the top 10 countries in the world by the level of cryptocurrencies acceptance. The first three lines in 2020 were occupied by Ukraine, Russia and Venezuela, followed by China, Kenya and the United States.
Over the past year, the share of China and the United States in the global volume of p2p transactions significantly decreased, giving way to other countries. The fall in China was exacerbated by the introduction of the mining ban.
The research methodology takes into account the on-chain cryptocurrency value received and on-chain retail value transferred, both weighted by purchasing power parity (PPP) per capita, and peer-to-peer (P2P) exchange trade volume, weighted by PPP per capita and number of internet users. The research covers 154 countries of the world.
The report notes that the adoption of cryptocurrencies in developing countries was facilitated by the financial crisis, high inflation and devaluation of national currencies. To counter this phenomenon, locals were turning to cryptocurrencies as a store of value.
“Many emerging markets face significant currency devaluation, driving residents to buy cryptocurrency on P2P platforms in order to preserve their savings. Others in these areas use cryptocurrency to carry out international transactions, either for individual remittances or for commercial use cases, such as purchasing goods to import and sell.”