India, Nigeria, and Vietnam Lead in Grassroots Cryptocurrency Adoption
New York-based blockchain data analytics firm Chainalysis has released insights from its crypto adoption index for 2023. The index reveals the top countries leading the charge in terms of grassroots cryptocurrency adoption. According to the analysis, India, Nigeria, and Vietnam have secured the top three positions, respectively.
Lower-Middle-Income Countries at the Forefront
The index indicates that lower-middle-income (LMI) countries have been at the forefront of grassroots crypto adoption over the past year. In addition to India, Nigeria, and Vietnam, other leading countries include the United States, Ukraine, Philippines, Indonesia, Pakistan, Brazil, and Thailand.
Data Analysis Methodology
Chainalysis analyzed data from 154 countries across five sub-indexes to determine these rankings. The parameters included on-chain crypto value, retail value received at exchanges and DeFi protocols, and peer-to-peer exchange trading volume. The rankings were determined by each country’s geometric mean in all five areas, as well as cryptocurrency purchasing power and population strength. A detailed report will be released in October 2023.
Dominance of Central & Southern Asia and Oceania (CSAO)
The Central & Southern Asia and Oceania region has shown dominance in grassroots crypto adoption. Six of the top 10 leading countries in grassroots crypto adoption are from this region. Additionally, the region ranks third in raw transaction volume globally.
India’s Leading Position Despite Tax Regime
Despite implementing a tax regime earlier this year, India has taken the lead in global crypto adoption and transaction volume. The country imposed a 30% tax on all crypto gains from trading and a 1% tax deduction at source (TDS) on all crypto transactions. However, India has become the second-largest crypto market by raw estimated transaction volume globally.
Prime Minister Modi’s Perspective
During the G20 summit held in India in August 2023, Prime Minister Narendra Modi recommended a complete and broader framework for cryptocurrencies in the country. He emphasized the need for a global framework and regulations for emerging technologies, including cryptocurrencies.
Hot Take: India’s Crypto Adoption Surges Despite Taxation Challenges
India has emerged as a leader in grassroots cryptocurrency adoption, despite facing challenges such as a tax regime that includes a 30% tax on gains from trading and a 1% tax deduction on transactions. The country’s rising interest in cryptocurrencies has propelled it to become the second-largest crypto market globally. Despite initial skepticism from the Reserve Bank of India, Prime Minister Narendra Modi recognizes the potential of cryptocurrencies and advocates for a comprehensive regulatory framework that extends beyond national boundaries. India’s success in crypto adoption showcases the resilience and enthusiasm of its people towards embracing digital currencies.
By
By
By
By