A report published by Chainalysis showed the Crypto Adopting Countries countries using metrics like purchasing power and peer-to-peer use.

Vietnam secured the number one rank on this report, doing particularly well in individual crypto payments as well as overall transaction value. In fact, Vietnam’s crypto transaction value was only marginally lower than that of India, a country several times larger. 

Why Have Some Countries Adopted Crypto Early?

One of the main reasons behind the popularity of cryptocurrencies in developing countries like Vietnam is because of its value as an investment tool compared to other financial instruments. In addition, people are using cryptocurrencies as a way to shield their savings against the plummeting value of the local currency. This is particularly true for countries like Venezuela, Turkey, and Argentina. 

Individuals in emerging economies also use cryptos for peer-to-peer payments. African countries like Kenya and Nigeria rank particularly high in this segment. Africa has led the way in adopting innovative modes of P2P payments, such as mobile payments. These methods have allowed African countries to leapfrog traditional methods like bank transfers, as well as any digital payment methods attached to these options. 

As far as the developed world is concerned, English-speaking countries – namely, the United States, Canada, UK, Australia, and South Africa –are leading the way in cryptocurrency adoption. Developing countries like Brazil, China, and India are also registering heavy cryptocurrency use. Ukraine and Russia are also intensive users of digital currency, but this has been tied to the public’s distrust of conventional institutions, as well as possible tax avoidance and capital flight. 

Countries that Use Cryptocurrencies the Most:

map of Crypto Adopting Countries

According to the Chainalysis report, below are the top 20 countries of the world in terms of cryptocurrency adoption:

Countries Adopted Crypto Early

Why Are Some Countries Against Crypto Adoption?

Cryptocurrency transactions are encrypted, which means that the involved parties can track the transaction. However, at the same time, encryption means that it is virtually impossible for regulators to keep their eyes on these transactions. 

Countries believe that cryptocurrencies can therefore be used to fund terrorist activities or other crimes, while some people and organizations might use these currencies to avoid capital controls. 

According to the People’s Bank of China, ICOs (Initial Coin Offerings) posed a threat to the stability of the country’s financial markets. For this reason, China decided to illegalize ICOs, and the People’s Bank of China now has the power to kill off any exchange that it believes is violating this declaration. 

China has created such rigid laws and criteria, that it is pretty much impossible for any blockchain or crypto organization to comply. This means that the People’s Bank of China can now crack down on any exchange or issuance that it wants. The Bank has also targeted some not-so-savory operators, which is why the last few years have seen several Chinese ICO platforms and exchanges shutting down. The bigger players have been able to use their resources to remain aligned with the PBOC requirements, and have therefore managed to stay afloat.  

Other countries that have banned cryptocurrencies are Kyrgyzstan, Bolivia, Ecuador, and Bangladesh. However, these bans seem to have had little to no effect on the worldwide crypto network. This is because these countries do not seem to contribute much to the overall crypto liquidity, nor are they major determinants in the blockchain industry trajectory. 

Final Word:

To sum up, adopting and emerging economies have a lot of incentive to adopt and embrace cryptocurrencies, which is why it is unsurprising to see these countries leading the way. Even though a few governments are still resistant, most are gradually realizing that it is futile to try to stifle the storm and it is better to go with the flow instead.