India, Nigeria, and Thailand Lead Global Crypto Adoption
The “2023 Global Crypto Adoption Index” by Chainalysis ranks India, Nigeria, and Thailand as the top three countries in terms of cryptocurrency adoption. Interestingly, lower middle-income (LMI) nations are leading the way in grassroots adoption of cryptocurrencies. According to the report, central and south Asia and the wider Oceania regions dominate the top of the index, with six of the top 10 countries located in these areas.
The index reveals that global grassroots cryptocurrency adoption has declined overall following the FTX implosion in 2022. However, LMI countries have shown the strongest recovery in adoption over the past year. These nations, categorized based on the World Bank’s wealth classification, have seen their total grassroots adoption remain above pre-bull market levels.
Chainalysis suggests that this data indicates a promising future for crypto in LMI countries, as they typically have growing industries and populations. Additionally, the report highlights that institutional adoption in high-income countries is gaining momentum despite the bear market. It predicts a potential “bottom up and top down” adoption of cryptocurrencies, serving the needs of users from both high-wealth and developing nations.
India: Leading the Way in Crypto Adoption
India holds the top spot in the region for cryptocurrency adoption and leads in grassroots adoption according to Chainalysis’ index. It is also the second-largest crypto market globally based on raw estimated transaction volume, surpassing other major economies.
The index also highlights India’s unique tax deducted at source scheme applied to cryptocurrency transactions. Under this scheme, a 1% tax must be levied on all transactions, deducted from the user’s balance at the time of the trade for it to be completed.
Hot Take: Crypto Adoption Strongest in Lower Middle-Income Countries
The “2023 Global Crypto Adoption Index” by Chainalysis reveals that lower middle-income (LMI) countries are leading the way in grassroots adoption of cryptocurrencies. Despite the overall decline in global adoption following the FTX implosion in 2022, LMI countries have shown the strongest recovery in the past year. This data suggests that crypto will play a significant role in the future of these nations. Additionally, the report highlights the growing institutional adoption of cryptocurrencies in high-income countries and predicts a potential “bottom up and top down” adoption trend. India stands out as the top-ranking country in terms of crypto adoption and transaction volume, further emphasizing the potential of cryptocurrencies in LMI nations.
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