Home
News
The Global Crypto Adoption Index, 2021, by Blockchain data platform Chainalysis highlights that India stands second in rankings in terms of the adoption of global cryptocurrencies. The adoption rate of cryptocurrency has increased to 2,300% since the third quarter of 2019.
As per the Chainalysis report, India ranked second in the adoption of global cryptocurrencies. The report, which ranked 154 countries, highlighted that worldwide crypto adoption rose to 881% in the last year. Global adoption has surged to more than 2,300% since the third quarter of 2019.
The Global Crypto Adoption Index, 2021, by Blockchain data platform Chainalysis report is based on ranking. The ranking is based on three metrics, including peer-to-peer (P2P) volume, received on-chain retail value, and received online value.
India stands second in crypto adoption
As per the report, India stands second only to Vietnam, followed by Pakistan and Ukraine which ranked at number three and four respectively. On P2P exchange trade volumes, India ranked the highest. The U.S. and China’s ranking was much lower and stands at eighth and thirteenth respectively.
The ratings of both countries were downgraded due to a significant drop in P2P trading volume per population using the Internet.
According to the report, the top 20 countries include developing countries such as Kenya, India, Nigeria and Tanzania.
The volume of transactions from these countries on P2P platforms is huge, adjusted for purchasing power parity (PPP) per capita and population using the Internet. Since there is no access to centralized exchanges, residents use P2P crypto exchanges as their primary access to cryptocurrencies.
Limited banking access
The report also highlights the fact that many emerging markets are limiting the amount of the national currency that residents can move out of the country. Cryptocurrencies offer residents the ability to circumvent these restrictions so that they can meet their financial needs.
Regulatory concern
Despite the increasing adoption rate, RBI has raised concerns about the Cryptocurrencies being traded on the market and transferred to the government. Under the chairmanship of Secretary (Economic Affairs), an inter-ministerial panel on cryptocurrency has been developed which recommends all private cryptocurrencies, except any virtual currency issued by the State, be prohibited in India.
There is a proposed cryptocurrency bill that has been tabled before the cabinet and is awaiting approval.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
