Vietnam, India, and Pakistan are world leaders in cryptocurrency adoption, highlighting the flexibility of peer-to-peer currency systems in emerging economies.
Chainalysis’s 2021 Global Encryption Adoption Index evaluated 154 countries based on three key indicators: the value of cryptocurrency received on the chain, the retail value transferred on the chain, and the volume of peer-to-peer exchange transactions. Each indicator is weighted by purchasing power parity.
Vietnam received the highest index score due to its strong performance on all three indicators. India is far ahead, but still performs well in terms of on-chain value received and on-chain retail value received. Pakistan performed strongly on all three indicators and ranked third.
The top 20 countries are mainly composed of emerging economies, with countries such as Tanzania, Togo, and even Afghanistan topping the list. Interestingly, the rankings of the United States and China slipped to eighth and ninth respectively. In the 2020 index, China ranked fourth and the United States ranked sixth.
A separate study conducted by Australia’s comparison website Finder.com further confirms Vietnam’s strong ranking. In the research of retail users, Vietnam surveys 27 countries on cryptocurrency adoption.
Peer-to-peer cryptocurrency exchanges such as LocalBitcoins and Paxful are leading the surge in adoption, especially in countries such as Kenya, Nigeria, Vietnam, and Venezuela. Some of these countries have experienced strict capital controls and hyperinflation, making cryptocurrencies an important means of transactions. As Chainalysis points out, “P2P platforms have a larger share of total transaction volume, and consist of smaller retail-scale payments in cryptocurrencies worth less than $10,000.”
As of early August, Nigeria ranked first in the world in “Bitcoin” Google searches. This country with a population of 400 million has made Sub-Saharan Africa a global leader in P2P Bitcoin transactions.
At the same time, in Latin America, some countries are Explore more possibilities for mainstream acceptance Bitcoin and other digital assets (Bitcoin). In June of this year, El Salvador became the first country in the world to recognize BTC as legal tender.