The upcoming Global Crypto Adoption Index by Chainalysis reveals that cryptocurrency adoption is flourishing, primarily driven by the broader Asian region.
Chainalysis’ “2023 Global Crypto Adoption Index” ranks India, Nigeria, and Thailand as the top three countries in terms of cryptocurrency adoption, with a notable emphasis on lower middle-income (LMI) nations spearheading grassroots adoption.
In a preview of the report, the blockchain analytics firm highlights that Central and South Asia, along with the wider Oceania regions, dominate the upper echelons of its index, with six of the top 10 countries hailing from this part of the world.
The index underscores a global decline in grassroots cryptocurrency adoption following the FTX incident of 2022. Nevertheless, lower-middle-income countries, categorized according to the World Bank’s wealth classification, have exhibited the most robust recovery in grassroots crypto adoption over the past year.
“In fact, LMI countries are the only category of nations whose overall grassroots adoption remains above the levels seen in Q3 2020, just before the most recent bull market.”
Chainalysis proceeds to illuminate several promising implications stemming from this data, emphasizing that LMI countries often feature burgeoning industries, growing populations, and collectively account for over 40% of the global populace.
“If LMI countries represent the future, then the data suggests that cryptocurrency will play a significant role in shaping that future.”
The excerpt also posits that institutional adoption driven by organizations in high-income countries is gaining momentum despite an extended bear market. Furthermore, the report envisions a potential convergence of “bottom-up and top-down” cryptocurrency adoption, where these digital assets cater to the needs of users across high-wealth and developing nations alike.
India retains its position as the largest cryptocurrency market in the region and leads the charge in grassroots adoption, according to Chainalysis’ index. It has also ascended to become the world’s second-largest crypto market in terms of estimated transaction volume, surpassing other major economies.
Chainalysis additionally highlights India’s distinctive tax deducted at source scheme applied to cryptocurrency transactions, requiring a 1% tax deduction on all transactions, which is withheld from the user’s balance at the time of the trade to complete the transaction.
