Blockchain analysis platform Chainalysis published its global crypto adoption index for 2022 of nations with the highest cryptocurrency adoption rate with India ranking fourth in the list, two spots down from last year.
Chainalysis report noted that the emerging markets dominate the Global Crypto Adoption Index this year.
The report noted, “Out of our top 20 ranked countries, 10 are lower-middle income: Vietnam, Philippines, Ukraine, India, Pakistan, Nigeria, Morocco, Nepal, Kenya, and Indonesia. Eight are upper-middle income: Brazil, Thailand, Russia, China, Turkey, Argentina, Colombia, and Ecuador.”
On the index, India ranks above the US, UK and Russia suggesting that the country’s crypto community is not far behind in pushing for further use of the technology.
The Philippines and Ukraine have taken the second and third rankings, respectively, showing a significant preference for crypto adoption in the near future.
The global index is led by Vietnam for the second consecutive year, emerging as the country that is most eager to embrace cryptocurrency adoption.
After landing thirteenth on the ranking in 2021, China reentered the top ten this year. This is very intriguing given the Chinese government’s crackdown on cryptocurrency activities since last year.
The rate of cryptocurrency adoption worldwide peaked in Q2 of 2021. Since then, adoption has fluctuated in waves, but it’s crucial that it is still far higher than it was in the 2019 bull market, the report emphasized.
The Indian government still hasn’t laid out a proper regulatory framework for the cryptocurrency industry except for the 30% crypto tax which came into effect on July 1 of this year.
Last month, the RBI governor Shaktikanta Das warned Indian citizens against the perils of crypto saying “cryptos may lead to dollarization of the developing countries like India as the prices of crypto tokens are mostly denominated in dollars.”
On the other side, Indian Finance Minister Nirmala Sitharaman urges that the IMF should lead the way in the global regulation of crypto assets. Talking about the blockchain, FM Sitharaman said the Union government was very keen to encourage blockchain distributed ledger technology in India.
While the Finance Minister and the Reserve Bank of India are on different pages regarding crypto adoption it is still hard to figure out how the crypto regulation would unravel as other nations are catching up in terms of adoption and already coming out with their CBDCs.
