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Here are countries with highest crypto adoption rate; is India on the list?

Here are countries with highest crypto adoption rate; is India on the list?

Here are countries with highest crypto adoption rate; is India on the list?
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By CNBCTV18.com Jan 4, 2022 5:50:05 PM IST (Published)

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SUMMARY

While a few countries such as El Salvador have even accepted bitcoin as legal tender, many countries are still wary of cryptos. Let's take a look at the top six countries that have the highest crypto adoption rate in the world based on Chainalysis Global Crypto Adoption Index:

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Cryptocurrencies have disrupted our lives just like the internet once did. Investments are pouring into non-fungible tokens and decentralized finance projects, even though there is still a lot of uncertainty on how governments across the world will regulate the space. According to crypto.com, the number of people holding cryptocurrencies globally doubled to about 220 million this year. Investors poured in about $30 billion into the crypto industry in 2021, more than in all previous years combined, per reports. However, while a few countries such as El Salvador have even accepted bitcoin as a legal tender, many countries are still wary of cryptos. Let's take a look at the top six countries that have the highest crypto adoption rate in the world based on Chainalysis Global Crypto Adoption Index: Chainalysis rankings are based on three factors: on-chain cryptocurrency value received (estimating total cryptocurrency) by the country; on-chain retail value transferred (measuring the activity of non-professional, individual cryptocurrency users) and peer-to-peer exchange trade volume (ranking countries by their P2P trade volume).

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Vietnam ranks first on the Global Crypto Adoption Index with an index score of 1. Remittance payments have been a significant reason behind this, as cryptocurrencies have provided the migrants in Vietnam with a way to send money home without paying the exchange fees. Consequently, around 20 percent of Vietnamese claim to have invested in Bitcoin. (Image: Reuters)

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India ranks second on the Global Crypto Adoption Index and has an index score of 0.37. India is believed to have developed a crypto user base of over 7.3 million and has a trading volume of more than $21.8 billion. People from smaller Indian cities have also started to participate in the crypto space. The sharp spike in bitcoin prices was a major reason for the increased interest in cryptos in India.  (Image: AP)

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Pakistan is third on the list. The country has a score of 0.36 on the Global Crypto Adoption Index. The majority of investments have come from the mining and trading of cryptocurrencies. Social media and the emergence of online exchanges fuelled the acceptance of cryptos in Pakistan. (Image: Reuters)

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Ukraine is ranked fourth on the Global Crypto Adoption Index with a score of 0.29. The government of Ukraine has recently legalized cryptocurrency, and hence, the country has daily trading volumes of more than $37 million! Further, the Ukrainian government plans to open a crypto market for investors and businesses soon. (Image: Reuters)

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Kenya has the fifth-highest global crypto adoption rate. The country has a crypto adoption score of 0.28. This is due to the increasing number of peer-to-peer transactions in Kenya. Kenyans are actively trading cryptos with each other more than anywhere else in the world. (Image: Reuters)

Rank 64 | Nigeria (Image: Reuters)
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Nigeria is placed sixth on the Global Crypto Adoption Index. Around 24.2 percent of Nigerians out of the total population own various cryptocurrencies. Consequently, the country has a crypto adoption score of 0.26. Bitcoin is the most popular crypto in Nigeria, followed by Ethereum. (Image: Reuters)

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This year, the USA and China dropped from 6th to 8th, and 4th to 13th positions as the exchange-traded volumes dropped significantly. The numbers are driven by the increase in the remittance market as transfer fees and foreign exchange-rate volatility burdened the transactors.

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