India has emerged as a global leader in cryptocurrency adoption, according to Chainalysis’ Global Crypto Adoption Index 2023. The country not only tops the index for grassroots adoption but also ranks as the second-largest crypto market by transaction volume, surpassing several wealthier nations.
Despite facing challenging tax regulations, including a 30% tax on crypto gains and a 1% tax on transactions, India’s demand for digital tokens remains robust. Chainalysis reports that Pix Automatico is set to launch in the first half of 2024, further enhancing the digital payment ecosystem.
India’s rapid growth in the crypto sector contrasts with its complex regulatory environment. The country has introduced clarity on money laundering rules for cryptocurrency transactions, aiming to navigate the industry’s challenges while maintaining strong adoption rates.
The report highlights that India is part of a broader trend in the Central and Southern Asia and Oceania (CSAO) region, with countries like Vietnam, the Philippines, and Pakistan also ranking high in crypto adoption. These trends suggest a growing acceptance of cryptocurrencies in emerging markets, where they serve various functions, from hedging against inflation to providing additional income.
The Chainalysis report also notes that lower middle-income countries are seeing significant grassroots adoption of cryptocurrencies, with these regions representing 40% of the world’s population. This growing trend underscores the potential of cryptocurrencies to bridge financial gaps and boost financial inclusion globally.
While the global crypto market has experienced fluctuations, with Bitcoin recently rising nearly 4% to $26,141 after a period of decline, the overall trend indicates resilience and ongoing interest in digital currencies.
Top 10 Countries for Grassroots Crypto Adoption in 2023
- India
- Nigeria
- Vietnam
- United States
- Ukraine
- Philippines
- Indonesia
- Pakistan
- Brazil
- Thailand
