A new study establishes a top 3 of the most “crypto-friendly” countries. A new study by Merchant Machine looked at cryptocurrency adoption in 50 different countries. Unsurprisingly, the United States remains at the top of the world ranking, while the United Kingdom is in 3rd position.
We also learn that Ukraine occupies the second position in the ranking of countries in which adoption is the widest. This study did not stop there and established estimates as to the evolution, and promise of the adoption of cryptocurrencies throughout the world.
The United States and the United Kingdom at the top of the ranking
The cryptocurrency landscape is changing rapidly. At the same time, the adoption of crypto-assets is spreading rapidly. Nevertheless, the regular use of cryptocurrencies differs significantly across the world.
In 2021, an estimated 300 million individuals have invested in cryptos. Along with individuals, businesses are also increasingly adopting cryptocurrency payments. Therefore, Merchant Machine wanted to take stock of the adoption of crypto-assets by country in 2022.
For this survey were taken into consideration by country: the number of crypto owners, the number of companies accepting these payments, the number of bitcoin ATMs available as well as the average search volume for a series of related keywords to cryptos.
In addition, data from the Global Decentralized Finance Index created by Chainanalysis has also been integrated. These provide insight into the growth in the use of DeFi services around the world.
Unsurprisingly, the United States ranks first among the countries using cryptocurrencies the most. Americans are said to be the citizens who spend the largest share of their income on cryptocurrencies. In third place is the United Kingdom.
These results, which are hardly surprising, are mainly explained by the power of the economies of these two countries according to the investigators.
It should be added that these two nations are in this top 3 because of the monthly volumes traded as well as the number, in absolute value, of investors present in the territory. That said, another country ranks first in crypto adoption in terms of the percentage of its population that employs them.
Ukraine, number 1 in adoption in Europe
Ukraine is now the second poorest country in Europe in terms of GDP per capita. Faced with the devaluation of the Ukrainian hryvnia, cryptocurrencies and DeFi have gained ground in the country during this year 2022.
As a result, Ukraine is today the second country in the world where the adoption of cryptocurrencies by the population is the most important, all criteria combined. It is also the first European country in this ranking. The second country from the Old Continent to be included in France, in 7th position, followed by the Netherlands.
However, Ukraine is the country with the largest share of the population using cryptocurrencies. While this amounts to 8.31% in the United States and 4.95% in the United Kingdom, it is 12.73% in the country at war.
The success of DeFi is, moreover, regularly observed in countries that suffer from monetary deregulation or limitations in access to traditional banking services. This is particularly the case in Venezuela where a socio-economic crisis is currently causing hyperinflation.
Which capitals give pride of place to cryptocurrencies?
This new study also looked at the concentration of companies accepting cryptocurrency payments by city. Today, a growing number of companies and local shops accept these.
Merchant Machine has therefore reviewed these businesses across the 26 countries likely to offer the most this service. Among the brands studied, we find catering companies, cafes, transport services, ready-to-wear stores, and accommodation.
As a result, the three most “crypto-friendly” cities are Bogota, Caracas, and Seoul. It is indeed in these capitals that consumers can most easily indulge in their shopping in cryptocurrencies.
What can we expect by 2030?
This new survey also scrutinized the prospects for the evolution of crypto markets by 2030. It concluded that overall growth of 15% in the use of cryptocurrencies would be observed in the years to come.
In addition, each country studied has been forecast for this growth by 2023, 2025, and 2030. According to these, Nigeria would be the country likely to experience the most growing adoption with 55% by next year and up to 100% by 2030.
This estimate is a projection of the growth currently observed and could therefore be contradicted. Nevertheless, it is interesting to observe that the countries in the process of experiencing the most significant adoptions of crypto-assets are the Philippines, Thailand, Malaysia, India, Vietnam, and Pakistan.
According to the investigators, this success is due to the weaknesses of the economies of these countries and in particular, as we mentioned, the devaluation of local currencies.
Although this study may suffer from methodological weaknesses, the fact remains that it confirms a trend already observed, that of the rapid growth in the adoption of cryptocurrencies.
This is especially true in regions where the service offering offered by DeFi meets an urgent need. Furthermore, let's not forget that the evolution of the use of crypto-assets will be closely correlated with the evolution of the national regulatory frameworks in force.
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