Chainalysis’ highly-anticipated 2023 Global Crypto Adoption Index spotlights the pivotal role played by the wider Asian region in driving grassroots cryptocurrency adoption. Among the findings, India, Nigeria, and Thailand emerge as the top three countries in this index. Remarkably, lower middle-income nations are at the forefront of this global crypto movement.
Asia and Oceania Dominate
The index underscores that Central and South Asia, along with the broader Oceania region, dominate the upper echelons of the ranking. In fact, six out of the top ten countries in the index hail from this dynamic part of the world.
Despite a dip in global grassroots cryptocurrency adoption following the FTX crisis in 2022, lower middle-income countries, as categorized by the World Bank, have showcased remarkable resilience and are leading the recovery over the past year. Notably, this category of nations is the only one where grassroots adoption has surged beyond pre-bull market levels in Q3 2020.
A Glimpse of the Future
Chainalysis identifies promising implications from this data. Lower middle-income nations often boast burgeoning industries and rapidly growing populations, collectively representing over 40% of the world’s populace. If these countries are the crypto adoption torchbearers, it strongly suggests that cryptocurrencies will be an integral part of their future.
Despite a protracted bear market, the report also reveals that institutional adoption, spearheaded by high-income countries, is gaining momentum. Moreover, it predicts a potential dual adoption pattern, wherein cryptocurrencies meet the diverse needs of users from both affluent and developing nations.
India: Leading the Charge
India emerges as the undisputed cryptocurrency leader in the region and the torchbearer of grassroots adoption according to Chainalysis’ index. Furthermore, it has ascended to become the world’s second-largest crypto market by raw estimated transaction volume, surpassing other major economies.
Chainalysis also highlights India’s distinctive Tax Deducted at Source (TDS) scheme for cryptocurrency transactions. Under this system, a 1% tax is levied on all crypto transactions, which must be deducted from the user’s balance at the time of the trade to complete the transaction.