India ranks 2nd in crypto adoption, among 154 countries, in global cryptocurrency adoption according to the 2021 Global Crypto Adoption Index by Chainanalysis , a blockchain data platform. The Global Crypto Adoption Index measures which country has the highest cryptocurrency adoption. The first index was released in 2020.
After Vietnam, India is only the second fastest country in ‘adopting’ new currency. India was followed by Pakistan and Ukraine at rank 3 and 4th position respectively. While US & China have dropped from 6th & 4th position to 8th and 13th position respectively.
According the report, the country ranked second in terms of crypto adoption, with 30% of the individuals polled saying they hold cryptocurrencies. Vietnam has the highest percentage of cryptocurrency ownership, at 40%. Indonesia, Malaysia, and the Philippines are also among the major crypto holding countries.
What is crypto adoption?
Crypto adoption means governments globally have created an enabling environment for blockchain and cryptocurrency to flourish or adopted the technology in their own practices. A large factor in this trend has been a marked increase in institutional investment, from legacy financial influencers and mainstream institutions, a change that has benefitted not only Bitcoin, but the entire wider crypto industry as well.
Amid volatility India ranks 2nd in crypto adoption
Most of the top 20 countries are developing countries like Tanzania, Togo and Kenya. In this context, the report notes that in emerging markets, face significant currency devaluation, driving residents to buy cryptocurrency on P2P platforms in order to preserve their savings, while adoption in North America, Western Europe, and Eastern Asia over the last year has been powered largely by institutional investment.
Earlier in 2018, just when the crypto fire was lit in the country, the government put it off by introducing a blanket ban on banks preventing them from facilitating crypto transactions. It stemmed from the fear that the anonymity of cryptos would give way to frauds and underworld activities.
However, in May 2020, the supreme court lifted the ban stating that there were no grounds for placing such a ban on cryptocurrencies. With this statement, the cryptocurrency spark was reignited among Indians. Within weeks of lifting the blanket ban imposed by RBI, Indian investors rushed to make the most of their lost time.
Since then, the volumes of traders and trading have been on a drastic rise month on month. As the equivocation and resentment against cryptocurrencies wear off in India, the largest cryptocurrency – Bitcoin, is quickly becoming a favorite for Indians who were always known for being ardent investors of gold.
The exchange has a claimed user base of 7.3 million users and said it has clocked more than $21.8 billion in trading volumes this year.