April 19, 2024
India, Nigeria, and Thailand lead the 2023 Global Crypto Adoption Index
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India Emerges as Global Crypto Leader, Surpasses Major Economies in Transaction Volume

India, Nigeria, and Thailand have secured the top three positions in Chainalysis’ 2023 Global Crypto Adoption Index. This index underscores the prominence of lower-middle-income (LMI) countries in driving the grassroots adoption of cryptocurrencies.

Chainalysis, the blockchain analytics firm, has unveiled a portion of its report, revealing that central and south Asia, along with the broader Oceania regions, are dominating the upper echelons of the index, with six out of the top 10 countries hailing from these regions.

The report highlights that global grassroots cryptocurrency adoption has experienced a decline, particularly in the aftermath of the FTX implosion in 2022. Nonetheless, lower-middle-income countries, categorized by the World Bank based on their economic status, have exhibited the most robust resurgence in grassroots crypto adoption over the past year.

Notably, Chainalysis underscores that, in fact, LMI is the only category of countries whose total grassroots adoption remains above where it was in Q3 2020, just prior to the most recent bull market. The report goes on to shed light on several promising implications of this data, emphasizing that nations within the LMI classification typically boast expanding industries and populations, collectively accounting for over 40% of the global population.

The report concludes by stating that if LMI countries are the future, then the data indicates that crypto is going to be a significant component of that future.

The excerpt also alludes to the accelerating institutional adoption of cryptocurrencies driven by organizations in high-income countries, even in the midst of an enduring bear market. Furthermore, the report anticipates the possibility of a bottom-up and top-down cryptocurrency adoption scenario where these digital assets cater to the needs of users from both affluent and developing nations.

India retains its position as the largest cryptocurrency market within the region and takes the lead in grassroots adoption, as per Chainalysis’ index. Notably, it has also ascended to the position of the second-largest crypto market globally in terms of raw estimated transaction volume, surpassing other major economies.

Chainalysis also highlights India’s unique tax deducted at source (TDS) scheme applied to cryptocurrency transactions, which mandates a 1% tax levy on all transactions. This tax is deducted from the user’s balance at the time of the trade to facilitate the completion of the transaction.

Image by pixabay

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