According to the 2023 Global Crypto Adoption Index by Chainalysis, lower middle-income (LMI) countries such as India, Nigeria, and Vietnam have emerged as leaders in grassroots cryptocurrency adoption. Despite regulatory challenges, Central and Southern Asia are dominating in terms of global crypto adoption.
The index utilizes a comprehensive methodology that combines on-chain and real-world data to evaluate and rank countries based on their cryptocurrency adoption. It focuses on identifying nations where everyday individuals are embracing cryptocurrencies, rather than those with the highest transaction volumes.
Central and South Asia, along with the broader Oceania region, dominate the top positions in the index, with six out of the top 10 countries originating from these areas. Lower middle-income countries have shown a resilient resurgence in grassroots crypto adoption, surpassing pre-2020 levels.
The report highlights the potential within these countries, considering their expanding populations and burgeoning industries, which collectively represent over 40% of the global population. Despite challenges, institutional adoption in high-income countries continues to grow.
India, in particular, leads the charge in grassroots adoption and is currently the largest cryptocurrency market in the region. It has also become the second-largest crypto market globally in terms of transaction volume.
However, India’s adoption success contrasts with its struggling crypto industry, facing stringent taxation policies and other challenges. Nevertheless, India has actively advocated for global crypto regulations, emphasizing the need for international rules at the G20 Summit.