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Despite the lack of clarity in the regulatory framework surrounding cryptocurrency, Indians appear to be welcoming the next phase of fintech with open arms. Chainalysis, a blockchain research firm, has ranked India fourth in its 2022 Global Crypto Adoption Index. The countries were ranked based on their use of various types of crypto-services. With this, India has surpassed both Russia and the United States on the index, indicating that the Indian crypto community is not far behind in terms of driving greater adoption of the technology.
Vietnam has topped the index and emerged as the most enthusiastic country in terms of cryptocurrency adoption.
Philippines and Ukraine have risen to second and third place, ahead of India, indicating a strong preference for potential crypto adoption in the coming years.
"The goal of our index is to determine where the majority of people are investing the most of their money in cryptocurrency." "While institutional activity is important, we also want to highlight the countries where individual, non-professional investors are most enthusiastic about digital assets," Chainalysis wrote in a blog post.
In Q2 2021, global cryptocurrency adoption reached an all-time high. At the time, the crypto sector's market capitalization had surpassed $3 trillion (roughly Rs. 2,39,47,650 crore).
Chainalysis noted in its report that crypto adoption appears to be enticing countries with lower incomes.
"Vietnam, Philippines, Ukraine, India, Pakistan, Nigeria, Morocco, Nepal, Kenya, and Indonesia are ten of our top 20 ranked countries." Brazil, Thailand, Russia, China, Turkey, Argentina, Colombia, and Ecuador are all upper-middle-income countries, according to the report.
Lower-income countries can benefit from cryptocurrency by sending remittances, preserving savings during times of fiat currency volatility, and meeting other financial needs specific to their economies.
"It will be interesting to see what solutions the cryptocurrency industry can build to increase adoption in high- and low-income countries in the coming years," the report added.
Surprisingly, China, where all crypto activities are prohibited, has ranked tenth on the Global Crypto Adoption Index.
"Our data suggests that the ban was either ineffective or laxly enforced," according to the Chainalysis study.
According to a recent Forex report, Hong Kong is the world's most crypto-ready nation, followed by the United States and Switzerland.
India was not included in the 'Worldwide Crypto Readiness Report.'
Nirmala Sitharaman, India's finance minister, has called for a global agreement on cryptocurrency regulations.
Sitharaman stated that the RBI is concerned that the inclusion of cryptocurrencies in India's existing financial systems will have a destabilising effect on the country's monetary and fiscal stability.
