India had an index value of 0.37, closely followed by Pakistan in third place with an index value of 0.36. Vietnam took first place with an index value of 1.
India ranks second among 154 countries in the global adoption of cryptocurrencies according to the 2021 Global Crypto Adoption Index from Chainalysis, a blockchain data platform. The Global Crypto Adoption Index measures which country has the highest acceptance of cryptocurrencies. The first index was published in 2020.
According to the report, global adoption of cryptocurrencies has increased 881 percent last year and 2300 percent since the third quarter of 2019.
At the time of this writing, cryptocurrencies are not banned / illegal in India, but they are unregulated making them a gray area for investors. Experts believe that once regulated, crypto will emerge as a new asset class in the country.
Further details on the Global Crypto Adoption Index 2021
The Global Crypto Adoption Index consists of three key figures, all of which are weighted according to purchasing power parity (PPP) per capita:
- Earned value of the on-chain cryptocurrency: Each country is ranked based on total cryptocurrency activity, but the rankings are weighted to favor countries where that amount is more significant based on the wealth of the average person and the value of money in general within the country.
- Transferred retail value in the chain: The goal of this metric is to measure the activity of non-professional, individual cryptocurrency users based on how much cryptocurrency they are making relative to the average person’s wealth.
- Peer-to-Peer (P2P) exchange trading volume: Under this key figure, the countries are ranked and weighted according to their P2P trading volume in order to give preference to countries with lower PPP per capita and fewer Internet users. The goal is to highlight countries where more residents invest a greater proportion of their total assets in P2P cryptocurrency transactions.
The data showed that more and more people from several countries Immerse yourself in the cryptocurrency. The rThe reasons for this growing trend vary around the world – in emerging markets, people are turning to cryptocurrency to preserve their savings in the face of currency devaluation, send and receive remittances, and conduct business transactions. Meanwhile, in the past year, crypto investments in North America, Western Europe and East Asia have been largely driven by institutional investments such as banks, insurance companies, credit unions, etc.
Countries like Kenya, Nigeria, Vietnam and Venezuela rank high in the index because they have enormous transaction volumes on peer-to-peer (P2P) platforms when they are adjusted for PPP per capita and internet users. This means that residents are using P2P cryptocurrency exchanges as their primary entry point into cryptocurrency, often because they do not have access to centralized exchanges.
China’s ranking dropped from fourth to 13th place along with the US, which was sixth last year and is currently eighth.
Data suggests a surge in crypto investments in India
Reports show that cryptocurrency investments have skyrocketed since the Supreme Court of India overturned an RBI circular calling on companies it regulates not to trade in cryptocurrencies.
According to a communication from WazirX, an India based Cryptocurrency Exchange:
- It has had a 2658% increase in user registrations from Tier II and Tier III cities like Ahmedabad, Lucknow, Ranchi, Imphal, etc.
- WazirX claimed it had a trading volume of over $ 21.8 billion in 2021, with a total base of 7.3 million users
- 55 percent of WaxirX registrations in 2021 came from Level II and III cities, with cities like Ahmedabad, Lucknow, and Patna seeing average growth of 2950%.
- Tier III cities like Ranchi, Imphal, and Mohali saw average growth of 2,455%
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