The global cryptocurrency landscape appears to be shifting towards developing nations, with India, Nigeria, and Thailand leading Chainalysis’ 2023 Global Crypto Adoption Index. Interestingly, these countries are classified as Lower Middle-Income (LMI) nations and their propensity to adopt crypto is outstripping that of their wealthier counterparts.
Central and South Asia, along with the Oceania region, house six of the top ten countries in the index, reflecting a compelling trend of grassroots cryptocurrency adoption within these areas. Despite the FTX collapse of 2022 which led to a general dip in worldwide cryptocurrency adoption, the LMI countries showcased a resilience in recovery, and are the only group to exhibit cryptocurrency adoption rates that exceed those prior to the bull market in Q3 2020.
It’s intriguing to note that LMI countries, characterized by their burgeoning industries and high population growth rates, encapsulate over 40% of the worldwide population. The data suggests that if the trend within these nations continues, cryptocurrency will play a significant role in their future, given their potential impact on global economy.
Simultaneously, institutional adoption perpetrated by high-income countries is steadily gaining momentum despite the bear market. This bifurcated state of affairs indicates a possible “bottom up and top down” adoption process wherein cryptocurrencies cater to diverse user needs spanning developing and affluent countries.
India, in particular, is noteworthy. It rides at the forefront of grassroots adoption, excelling as the largest cryptocurrency market in the region. What’s more, it usurps several economic giants to be the second-largest crypto market in terms of raw estimated transaction volume.
This is despite the implementation of India’s unique tax deducted at source scheme on cryptocurrency transactions. This scheme requires a 1% tax to be levied on every transaction, which is then subtracted from the user’s balance to finalize the transaction.
On the other side of the world, popular digital payment gateway PayPal is expanding its cryptocurrency services, allowing users to convert their cryptocurrency into U.S. dollars directly from their wallets into their PayPal balance. They aim to offer their customers a secure and seamless crypto transaction experience, backed by their robust security measures.
In conclusion, this contrast in adoption trends presents an interesting predicament. While developing countries surge ahead in grassroots crypto adoption, high-income countries are harboring an increasing number of institutional adopters. The convergence of these trends might just shape the trajectories of global economy and the digital currency realm in the near future.
Source: Cointelegraph
