Vietnam Takes Top Spot in Global Crypto Adoption – crypto.news
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A Chain analysis rEport shows Vietnam to be number one globally in crypto adoption in 2022, with Nigeria, US and China among the top 20 countries.
Vietnam is number one
A recent report by Chainalysis showed that the countries are among the company’s top 20. 2022 Global Crypto Adoption Index. The chain analysis used five sub-indices to determine the ranking, such as total and retail intra-chain crypto value received on centralized exchanges (CEXEs), peer-to-peer (P2P) volume, total and retail DeFi transaction volume, all weighted by each country’s purchasing power parity (PPP) per capita.
Based on the overall index, Vietnam is the number one country with the most cryptocurrency adoptions, maintaining the top spot for the second year in a row. The country also ranks in the top 10 in the use of DeFi, P2P and centralized exchange.
Nigeria, which is ranked 11th globally, is increasingly showing emerging technology despite the latest February 2021 ban on crypto trading by the Central Bank of Nigeria (CBN). The use of P2P exchanges has also increased, and the African country ranks 17th in terms of trading volume.
Meanwhile, the United States, which ranked sixth in Chainalysis’ global crypto surveillance index in 2020 and eighth in 2021, rose to fifth in the current ranking. While adoption appears to be high in the US, investors and traders in the country still have to deal with fragmented regulations. The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have yet to come to an agreement on how to classify crypto as either a security or a commodity.
China also moved up from 13th place in 2021 to 10th in recent overall rankings. The Chinese government has repeatedly cracked down on the crypto sector, and a ban on bitcoin mining has prompted miners to migrate to friendlier jurisdictions.
However, the Chainalysis report noted that the ban on cryptocurrency trading appeared to be “ineffective or loosely controlled”, considering that China ranked second overall in the use of centralized exchanges.
Emerging markets dominate global crypto adoption
Interestingly, emerging markets appeared to dominate crypto adoption in 2022, with ten countries at the lower middle-income level, including Pakistan, Nigeria, India, Indonesia, Vietnam, and Ukraine, and eight upper-middle-income countries, such as China, Colombia. , Argentina, Thailand and Russia, finishing in the top 20. Meanwhile, Great Britain and the United States are two high-income countries.
An excerpt from the Chainalysis report reads:
“Users in lower-middle-income and upper-middle-income countries often rely on cryptocurrency to send remittances, preserve their savings during fiat currency fluctuations, and meet other financial needs unique to their economies. These countries also tend to rely more on Bitcoin and stablecoins than other countries. In the coming years, it will be interesting to see what solutions the cryptocurrency industry can build to increase adoption in high and low income countries.
Although the pace of global crypto adoption has slowed as a result of the current bear market, cryptocurrency usage is still higher than before the 2020 bull market. The report stated that a critical mass of private investors have not withdrawn their investments despite the price drop.