According to the 2021 Global Crypto Adoption Index published by blockchain research company Chainalysis, India is only second to Vietnam in terms of cryptocurrency adoption.
“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,” the report stated.
The ranking was determined by three factors: the volume and value of peer-to-peer (P2P) exchange trading. Pakistan and Ukraine were ranked three and four, respectively, behind India.
The United States and China both dropped from sixth to eighth place, and from fourth to thirteenth place, respectively.
According to the study, the dip in ranking is due to lower P2P volumes in the two nations when compared to global levels.
Tanzania, Togo, and Kenya make up the majority of the top twenty nations.“Many emerging markets face significant currency devaluation, driving residents to buy cryptocurrency on P2P platforms in order to preserve their savings. Others in these areas use cryptocurrency to carry out international transactions, either for individual remittances or for commercial use cases, such as purchasing goods to import and sell,” as per the report.
“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,” it continued.