According to the 2nd Edition of Global Crypto Adoption Index 2021 released by Chainalysis, a crypto-analysis firm, India with a score of 0.37 ranked 2nd out of 154 countries. Vietnam topped the index.
- It aims to provide an objective measure of which countries have the highest level of Cryptocurrency adoption.
- The index ranks countries based on 3 indicators such as On-chain value received, On-chain retail value received and Peer-to-Peer (P2P) exchange trade volume
- India improved to 2nd rank from 11th in the 2020 Global Crypto Adoption Index.
Note: It is the preview of the Global Crypto Adoption Index 2021, the full report will be released in September 2021
Key findings of the report:
i.The worldwide Cryptocurrency adoption grew more than 880% from June 2020 to July 2021 with P2P platforms driving cryptocurrency usage in emerging markets.
ii.Emerging Markets: Countries like Vietnam, Venezuela, Kenya and Nigeria rank high due to huge transaction volumes on P2P platforms when adjusted for Purchasing Power Parity (PPP) per capita & internet usage population.
- Residents in Emerging markets buy cryptocurrency to preserve their savings from currency devaluation, remittances, purchasing goods etc..
- Central and Southern Asia, Latin America and Africa use P2P platforms more than Western Europe and Eastern Asia.
iii.China & US slips in rankings:
In the 2020 index, China ranked 4th and the United States (US) ranked 6th but they slipped to 13th and 8th position respectively.
- The main reason is their rankings in P2P trade volume weighted for internet-usage population declined drastically.
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