India ranks second in terms of crypto adoption in the world

Source: Livemint

What is the news?

India ranks second in terms of crypto adoption worldwide behind Vietnam, but ahead of countries such as the US, UK, and China, according to the 2021 Global Crypto Adoption Index by blockchain data platform Chainalysis.

Findings

• India was followed by Pakistan and Ukraine at rank three and four respectively. The US and China’s ranking dipped from sixth to eighth and from fourth to thirteenth respectively.
• Most of the top 20 countries are developing countries like Tanzania, Togo and Kenya.
• Many emerging markets face significant currency devaluation, driving residents to buy cryptocurrency.
• Usage:
  • To carry out international transactions, either for individual remittances or for commercial use cases, such as purchasing goods to import and sell. Many emerging markets limit the amount of the national currency that residents can move out of the country. Cryptocurrency gives those residents a way to circumvent those limits so that they can meet their financial needs.

Relevant facts:

• A report by US-based research platform Finder had recently confirmed that the top five countries in terms of crypto adoption were all from Asia.
• Bitcoin is the most popular coin in India, followed by Ripple, Ethereum and Bitcoin Cash.
• India’s “huge expatriate population” makes it the world’s number one remittance recipient in the crypto space.
  • India had the largest expatriate population in the world, with 18 million people from the country living outside their homeland last year, noted a January 2021 UN report.
• Crypto adoption in India has also been led by smaller towns in the country, with growth in users from tier II and tier III cities in India.
• The interest is mostly driven by referrals. The fact that cryptocurrencies have made money for many individuals almost overnight has drawn more such users to the space, especially from smaller towns. However, serious investors who will get in the space for the long term are yet to really take interest.