The blockchain data platform Chainalysis has released the 2021 Global Crypto Adoption Index, indicating that India ranks second globally in terms of crypto adoption.
The top position in the 2021 Global Crypto Adoption Index has been secured by Vietnam.
Chainalysis, in its report, specified that since the quarter third of 2019, the worldwide adoption of cryptocurrency increased by over 2300 percent.
According to the report, “Our research suggests that reasons for this increased adoption differ around the world — in emerging markets, many turn to cryptocurrency to preserve their savings in the face of currency devaluation, send and receive remittances, and carry out business transactions, while adoption in North America, Western Europe, and Eastern Asia over the last year has been powered largely by institutional investment.”
Along with peer-to-peer (P2P) exchange trading volume and value received, Chainalysis used other three methods for ranking the countries.
After India, Pakistan and Ukraine acquired third and fourth position respectively in the index. However, the ranking of the US and China dipped this time. Earlier the US was at the sixth position but now slipped down to eighth, and China ranked fourth, earlier, but now has come down to the thirteenth position.
As per the report, the recent rank drop of these two countries is because of the falling P2P volumes.
Further, it has been notified that most top 20 countries, which were able to mark their position in the Index, are developing nations like Tanzania, Togo and Kenya.
“Many emerging markets face significant currency devaluation, driving residents to buy cryptocurrency on P2P platforms in order to preserve their savings,” states the report. However, others in the same areas use digital assets to facilitate international transactions, either for individual remittances or for commercial use cases.
The report by Chainalysis further added, “Many emerging markets represented here limit the amount of the national currency that residents can move out of the country. Cryptocurrency gives those residents a way to circumvent those limits so that they can meet their financial needs.”