Chainalysis’ 2023 Global Crypto Adoption Index: India, Nigeria, and Thailand Lead the Way

India, Nigeria, and Thailand have emerged as the standout performers in Chainalysis’ recently unveiled “2023 Global Crypto Adoption Index.” This index sheds light on the intriguing trend of grassroots cryptocurrency adoption, particularly in lower-middle-income (LMI) countries. The findings reveal a compelling narrative that differs from previous years, showcasing the evolving dynamics of the global crypto landscape.

Notably, central and south Asia, along with the wider Oceania region, have asserted their dominance at the summit of Chainalysis’ index. A staggering six out of the top 10 countries on this list are located in these regions. This geographical concentration underscores a significant shift in the crypto adoption paradigm.

One of the most eye-catching takeaways from the report is the overall dip in grassroots cryptocurrency adoption worldwide, attributed in part to the fallout from the FTX crisis of 2022. However, what sets this year apart is the remarkable resilience displayed by lower-middle-income countries, as defined by the World Bank’s economic classification. These nations have exhibited the most robust recovery in grassroots crypto adoption over the past year. In fact, LMI countries stand out as the sole category where total grassroots adoption surpasses levels observed in Q3 2020, just before the onset of the most recent bull market.

Chainalysis emphasizes the promise concealed within these statistics. LMI countries often boast burgeoning industries and populations, collectively accounting for over 40% of the global populace. As the report suggests, if these nations are indeed the future, cryptocurrencies are poised to play a substantial role in shaping that future.

Additionally, the report highlights the steady growth of institutional adoption in high-income countries, even in the face of an extended bear market. This data suggests the emergence of a dual-pronged “bottom up and top down” adoption pattern, wherein cryptocurrencies cater to the needs of users from both wealthy and developing nations.

Taking a closer look at the frontrunner, India commands a leading position in the regional crypto market and is at the forefront of grassroots adoption, as indicated by Chainalysis’ index. Impressively, India has risen to become the world’s second-largest crypto market in terms of raw estimated transaction volume, surpassing other major global economies.

Chainalysis also delves into India’s distinctive tax deducted at source scheme applied to cryptocurrency transactions. This policy mandates a 1% tax on all transactions, which must be deducted from the user’s balance at the time of the trade to complete the transaction. This innovative approach reflects India’s proactive stance on regulating cryptocurrency activities while participating in the global crypto ecosystem.

In summary, the “2023 Global Crypto Adoption Index” by Chainalysis paints a dynamic and evolving picture of cryptocurrency adoption worldwide. It highlights the growing influence of LMI countries, the resilience of grassroots adoption, and the coexistence of institutional and individual users in shaping the future of cryptocurrencies. India’s prominent role in this narrative underscores its status as a crypto trailblazer and a key player in the unfolding crypto story.

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