Despite the ambiguity in the regulatory framework surrounding crypto, Indians are embracing the next phase of fintech with open arms. India has been ranked fourth in the 2022 Global Crypto Adoption Index compiled by blockchain research firm Chainalysis. The list ranks all countries based on the usage of different types of crypto-services. With this, India has overtaken Russia and the US in the index, indicating that the Indian crypto community is not far behind in further adoption of the technology.
Vietnam topped the index and emerged as the most enthusiastic nation for crypto adoption.
The Philippines and Ukraine ranked second and third ahead of India to show a strong trend towards potential crypto adoption in the coming years.
“Our index aims to measure where most people are putting the largest share of their money into cryptocurrencies. While institutional activity is key to that, we also want to highlight countries where individual, non-commercial investors are the most receptive to digital assets,” Chainalysis said. Blog post,
Global adoption of cryptocurrencies reached current all-time high in Q2 2021. At that time, the market value of the crypto sector crossed $3 trillion (approx. Rs. 2,39,47,650 crore).
In its report, Chainalysis noted that crypto adoption appears to be of interest in low-income nations.
“Of our top 20 ranking countries, ten are lower middle income: Vietnam, Philippines, Ukraine, India, Pakistan, Nigeria, Morocco, Nepal, Kenya and Indonesia. Eight are upper middle income: Brazil, Thailand, Russia, China, Turkey, Argentina, Colombia and Ecuador,” the report states.
Cryptocurrencies can serve as a handy tool for low-income nations in terms of sending remittances, preserving their savings during periods of fiat currency volatility, and meeting other financial needs specific to their economies.
“In the coming years, it will be interesting to see what solutions the cryptocurrency industry can devise to increase adoption in high- and low-income countries,” the report noted.
Interestingly, China, which has banned all forms of crypto activity, has ranked tenth in the Global Crypto Adoption Index.
“Our data suggest that the ban is either ineffective or laxly enforced,” the ChainAlysis study noted.
In a recent report, Forex claimed that Hong Kong is the most crypto-ready nation in the world after the US and Switzerland.
India did not get a place in that ‘Worldwide Crypto Readiness Report’.
India’s Finance Minister Nirmala Sitharaman has called for a global consensus on crypto regulations.
Calling for global support on crypto regulations, Sitharaman said the RBI is concerned that the involvement of cryptocurrencies in India’s existing financial systems could have a destabilizing effect on the nation’s economic and financial stability.