In 2023, Chainalysis’ Global Crypto Adoption Index revealed India, Nigeria, and Thailand as the frontrunners in cryptocurrency adoption, with lower middle-income nations leading the way, despite a global downturn post the 2022 FTX incident.
This report highlights a resilient recovery in crypto adoption among lower middle-income countries. These nations, boasting burgeoning industries and populations, make up over 40% of the world’s populace, hinting at a significant crypto role in their future.
Furthermore, the report notes that wealthier countries are witnessing a surge in institutional crypto adoption, even in bear markets. A future where both individuals in developing nations and prosperous organizations utilize cryptocurrencies appears to be on the horizon.
India emerges as a standout crypto market in the region, marked by robust grassroots adoption. It ranks as the second-largest global crypto market by transaction volume. India employs a unique crypto tax system, deducting a 1% tax from users’ balances during transactions.
The report highlights the growing cryptocurrency adoption, notably Bitcoin, in Asia and Oceania, especially among moderate-income nations, indicating crypto’s potential significance in their future economies.
Meanwhile, India’s unique crypto tax system distinguishes it as a prominent market, attracting affluent organizations from around the world.