- Chainalysis’ recent report shows that seven Central Asia, South Asia, and Oceania (CSAO) countries are among the Top 20 Cryptocurrency Adopters Worldwide.
- Low-income countries (India, Nigeria, and Indonesia) are the world’s largest cryptocurrency adopters.
- Cryptocurrency provides transparency Financial services in low-income countriesenabling them to hedge against inflation and helping the unbanked.
A recent crypto report from Chainalysis highlighted an interesting trend: Low-income countries lead global cryptocurrency adoption.
Topping the list is India, followed by Nigeria and Indonesia.
Why? Because Cryptocurrency solves many financial problems Individuals and businesses in less developed countries often face this situation. Improve their economic and purchasing power.
7 CSAO countries lead in cryptocurrency adoption
CSAO countries currently Leading the world in cryptocurrency adoption7 of the top 20 countries are from the region.
It is followed by the Philippines, Pakistan, Thailand and Cambodia.
A recent report states 40% of American Adults Now Own Cryptocurrency. However, The United States ranks fourth on Chainalysis’ global cryptocurrency adoption listindicating that India, Nigeria, and Indonesia have more cryptocurrency holders than this percentage.
According to Chainalysis, CSAO countries have unique patterns of crypto activitymainly in local cryptocurrency exchanges, covering DeFi and merchant services.
Cryptocurrency adoption has increased globally in countries across all income brackets. However, Usage rates have declined significantly in high-income countries Since the beginning of 2024.
A safety net for the unbanked?
Just last year, More than 190 million Indians do not have bank accountsInterestingly, the country’s fintech acceptance rate is 87%, which explains the country’s adoption of cryptocurrencies.
There are many reasons Why low-income countries might adopt cryptocurrencies Faster than the wealthy:
- discount Alternatives to traditional financial services which less affluent areas lack, enabling them to buy, sell and receive payments
- Open A fast way to send and receive money around the worldCountries with large numbers of migrant workers may find this useful
- Enable them to explore DeFi, Allow them to access loans and savings No need to rely on TradFi services which usually have strict regulations (such as KYC)
- It helps reduce corruption because Transparency in blockchain-based payments
- Ignore the issue of inflation. For example, Stablecoins (usually pegged to the U.S. dollar) may provide More stable value than local currencies
The US dollar is much stronger than the Indian rupee. Ranked 12th in the worldThe rupee ranks much lower at 94th.
Indians buying dollar-pegged stablecoins like $USDT or $USDC can protect them from the volatility of their own currency.
Conclusion – Cryptocurrency is more than just an investment tool
The Chainalysis report shows that low-income countries are doing more than just participating in cryptocurrency investment — they’re also operating it.
CSAO The likelihood of countries adopting cryptocurrencies Affected by economic and financial difficulties and requires more financial authorization.
Cryptocurrencies protect individuals and businesses from the effects of inflation. Providing financial services to the unbankedenabling anyone to transparently send and receive payments around the world.
refer to
Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile, high-risk asset class.
