Ukrainians and Russians are among the most active cryptocurrency users in the world. A preliminary report from Chainalysis supports this.
Our Global Crypto Adoption Index is here! We used on-chain and P2P transaction volume weighted by population, GDP, and other factors to rank 154 countries by grassroots-level cryptocurrency adoption. Read our blog for a sneak peek at the top 10 countries! https://t.co/R4zpSE3Bxc
— Chainalysis (@chainalysis) September 8, 2020
In their global study, researchers emphasised the mass adoption of digital assets by ordinary users.
The methodology accounts for population size and the country’s macroeconomic indicators and includes: the value of digital assets sent per capita, balances of coins on online accounts, and the volume of retail and P2P transactions under $10 000, calculated at purchasing-power parity.
“We took the geometric mean value of the rating for each of the 154 countries, after which we normalised the score to a 0-to-1 scale to obtain the overall rating,” the researchers note.
An analysis of the top ten countries showed a surge of interest in cryptocurrency as an investment, a store of value, and a medium of exchange.
Ukraine took first place in the ranking, followed by Russia. Venezuela rounded out the top three. The top ten also included China, Kenya, the United States, South Africa, Nigeria, Colombia, and Vietnam.
The sector is particularly active in developing economies. For example, Venezuelans use cryptocurrency to preserve savings amid economic instability.
The popularity of P2P platforms in countries with limited access to traditional financial systems stems from the absence of intermediaries and regulatory restrictions in their use.
The largest flows of cryptocurrency transfers have been recorded in East Asia:
Zero scores were recorded for 12 countries: Afghanistan, Algeria, Cabo Verde, Chad, Fiji, Laos, Libya, Mongolia, Tajikistan, Turkmenistan, the West Bank and Gaza, and Zimbabwe. All of these countries scored zero points on at least one metric, which, however, does not indicate a complete absence of cryptocurrency activity among their populations, the researchers note.
“We recognise the shortcomings of the methodology, including the use of VPNs and other products that can mask the geographic origins of online activity. However, the trends we studied involve millions of transactions, so the ubiquity of such services would have to be extremely extensive to materially affect the final data,” Chainalysis said.
Earlier, the Ministry of Digital Transformation of Ukraine опубликовала a release, based on the Chainalysis study summary, reporting the country’s lead in the number of active cryptocurrency users.
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