India ranks second in the global cryptocurrency adoption index behind Vietnam, but ahead of countries such as the US, UK, and China, revealed a Global Crypto Adoption Index by blockchain data platform Chainalysis.
According to the report, global crypto adoption grew by 880 percent between June 2020 and July 2021.
India was followed by Pakistan and Ukraine at rank three and four respectively.
“Our research suggests that reasons for this increased adoption differ around the world. In emerging markets, many turn to cryptocurrency to preserve their savings in the face of currency devaluation, send and receive remittances, and carry out business transactions, while adoption in North America, Western Europe, and Eastern Asia over the last year has been powered largely by institutional investment,” the report said.
The ranking was based on three metrics including peer-to-peer (P2P) exchange trading volume and value received.
“Many emerging markets represented here limit the amount of the national currency that residents can move out of the country. Cryptocurrency gives those residents a way to circumvent those limits so that they can meet their financial needs,” the report said.
“Many emerging markets face significant currency devaluation, driving residents to buy cryptocurrency on P2P platforms in order to preserve their savings. Others in these areas use cryptocurrency to carry out international transactions, either for individual remittances or for commercial use cases, such as purchasing goods to import and sell,” the report added.