Case Studies of Countries with Significant Crypto Adoption

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Crypto is the new trend in the global economy. It has created several impressive headlines in the recent past, as some of the economic powers have changed its attitude towards the sector. Notably, the global crypto adoption has significantly increased in the recent past. Some countries like El Salvador have implemented certain bold policies, encouraging others to change their stand towards cryptos. Here our attempt is to explore the crypto scenario in those countries which have performed better in the crypto adoption analysis. 

Some of the facts this report shares may leave you stunned. And, certain ones may disappoint you. But this mix of contradictions make this report an exceptional one. Don’t miss it. 

Top Countries by Crypto Adoption Percentage  

The United Arab Emirates, Vietnam and the United States are the top three countries in terms of percentage of population who own crypto. 

Countries	No. of Crypto Owners	Crypto Adoption Percentage
United Arab Emirates	3M	30.4%
Vietnam	21M	21.2%
US	53M	15.6%
Iran	12M	13.5%
Philippines	16M	13.4%
Brazil	26M	12%
Saudi Arabia	4M	11.4%
Singapore	665K	11.1%

In the United Arab Emirates, nearly three million people own crypto, which is at least 30.4% of its population. Though the United States has 53 million crypto owners, it could not get the top post and remains in the third position, as only 15.6% of its population are crypto owners. Vietnam, which remains in the second spot, has around 21 million crypto owners. In this Asian country, at least 21.2% of its population are crypto owners. Iran and Philippines, with 13.5% and 13.4%, stay in the 4th and 5th position. Notably, Brazil has over 26 million crypto owners, but only 12% of its population own cryptocurrencies. Saudi Arabia, with 11.4%, and Singapore, with 11.1%, are notable members.     

Top Countries by Number of Crypto Owners 

If we only consider the number of crypto owners, things will change slightly. In this list, we have India and China as the top two players. The USA, though has a significant number of crypto owners, is still in the third position. Why? 

Countries	No. of Crypto Owners	Crypto Adoption Percentage
India	93.5M	6.55%
China	59.1M	4.15%
USA	26M	15.6%
Brazil	26M	12%
Vietnam	21M	21.2%
Pakistan	15.9M	6.6%
Philippines	16M	13.4%
Nigeria	13.3M	5.93%
Indonesia	12.2M	4.4%
Russia	8.7M	6.1%

India has over 93.5 million crypto owners, and China has over 59.1 million. The said fact is impressive, but it does not make these countries prominent players. The reason is simple. Only 6.55% of the Indian population owns cryptocurrencies, and in China, the scenario is even worse. The Chinese crypto community enjoying the benefits of crypto ownership is just 4.15% of its total population. Certainly, the USA and Brazil, with 15.6% and 12%, deserve to be considered as top players. Other prominent countries in the list are Vietnam (21M), Pakistan (15.9M), Philippines (16M), Nigeria (13.3M), Indonesia (12.2M), and Russia (8.7M). Among these, Vietnam and Philippines are significant, as the former’s crypto ownership percentage against its population is as high as 21.2%, and the latter’s is over 13.4%.   

Crypto Adoption by Region 

Let’s make the analysis a little more interesting. How about entering a little bit deeper and doing a regional-focused analysis? Sounds great, right? 

For our convenience, we can divide our geography into three segments: the Europe, Middle East and Africa segment, the Amercians segment and the Asia-Pacific segment.   

Crypto Adoption in Europe, Middle East and Africa 

Like what the name suggests, the Europe, Middle East and Africa segment covers the countries in the Europe, Middle East and Africa region.  

Countries	No. of Crypto Owners	Crypto Adoption Percentage
Nigeria	13.3M	5.93%
Russia	8.7M	6.1%
Ukraine	3.9M	10.57%
UK	3.9M	5.74%

Generally, people expect that a European country would be a dominant player in the list. To an extent, the expectation is right. But in terms of the number of crypto owners index, none of the European countries match the performance of Nigeria, in which nearly 13.3 million people are crypto owners. Russia, a European superpower, with 8.7M crypto owners, stays in the second position. Ukraine and the UK have 3.9M and 3.9M crypto owners respectively. In the list, Ukraine does have an upperhand, as at least 10.57% of its population are crypto owners. In Nigeria, only 5.93% of its population are crypto-owners, and in Russia and the UK, the values are just 6.1% and 5.74% respectively. 

Crypto Adoption in the Americas 

There are some surprises in the American segment also. As you know, this segment primarily covers the USA, Canada and Latin America. There is a rumour that the entire crypto industry revolves around this region. Is there any truth to that? Let’s see!

Countries	No. of Crypto Owners	Crypto Adoption Percentage
USA	26M	15.6%
Brazil	26M	12%
Mexico	8.4M	6.55%
Argentina	4.45M	9.73%
Canada	2.7M	7%

The USA is the leading player in the region in the crypto adoption landscape, undoubtedly. Otherwise, it would not have such a large number of crypto users. It has over 26 million crypto users – the US crypto community makes at least 15.6% of the country’s total population. Does it sound impressive? But when we consider the adoption rate in other prominent players in the region, it sounds doubtful whether these values are high enough to be considered as a country with the best crypto adoption environment. Even Brazil has over 26 million crypto users. In that Latin American country, at least 12 percent of its total population own cryptocurrencies. The case is similar in Mexico, where there are over 8.4 million crypto owners – roughly 6.55% of the population. Even Argentina has over 4.45 million crypto owners. Contrary to the general expectation, Canada is very weak in terms of crypto adoption. It only has 2.7 million crypto owners – approximately under seven percent of the country’s total population.   

Crypto Adoption in Asia-Pacific 

The analysis of the crypto adoption scenario in the Asian-Pacific segment can definitely leave most non-Asians perplexed – particularly those in the developed west. Why? Just go through the below given numbers. Isn’t it enough to ring the bell?   

Countries	No. of Crypto Owners	Crypto Adoption Percentage
India	93.5M	6.55%
China	59.1M	4.15%
Vietnam	20.9M	21.2%
Pakistan	15.9M	6.6%
Philippines	15.8M	13.4%
Indonesia	12.2M	4.4%
Thailand	6.9M	9.61%
Japan	5.1M	4.13%
Bangladesh	4.3M	2.5%

No longer can anyone deny the dominant role that the Asia Pacific region plays in the crypto sector.  India and China alone have over 1526M crypto owners. In Vietnam, at least 21.2% of its population are crypto owners, and in the Philippines, more than 13.4% of its population are crypto owners. Even in Bangladesh and Pakistan – which are currently struggling due to political unrest and economic uncertainties, there are over 4.3 million and 15.9 million crypto owners respectively. Japan is a crucial player, with 6.9 million crypto owners. Thailand, known for its flourishing tourism sector, even has 6.9 million crypto users.  

‘Is the Asia-Pacific adopting cryptos much faster than other two regions’ is a question that can create a lot of headlines in the coming days. With Hong Kong and Singapore, the two prominent financial hubs in the region, eagerly revamping its financial environment to embrace the new possibilities after the advent of the crypto and blockchain technology, the said question is less likely to sound this much indigestible in the future.   

Countries with Cryptocurrency as a Legal Tender 

Do you know that certain countries have recently accepted cryptocurrencies as legal tender? 

El Salvador is the first country to accept cryptos as legal tender. The Central African Republic is the second. In El Salvador, the policy to accept crypto as legal tender was adopted on 9th June 2021. Approximately a year later, on 23rd April, 2022, the Central African Republic joined the league, boldly.   

It is said that many counties particularly in the Africa and Latin America region have such a plan. 

Crypto Adoption Index Score 

Let’s approach the crypto adoption scenario from a different angle. The data set developed by Henley & Partners is an easy way to do so. This data set allows us to approach the crypto adoption scenario using some interesting parameters like public adoption and infrastructure adoption. 

At first, we can consider the two prime parameters, public adoption, and infrastructure adoption, and see which country will come at the top in the list when these three are considered together. And later, we can take each parameter individually and see how the scenario changes. Ready? 

When we consider these two parameters together, the UK gets the maximum score of 23.2. Australia and Singapore follow with 23 and 22.6 scores.

Countries	Crypto Adoption Index Score
UK	23.2
Australia	23
Singapore	22.8
USA	22.6
Switzerland	21.8
UAE	21.7
Hong Kong	20.8
Canda	19.7
Turkey	18.5
Malta	17.0

USA is in the fourth position with 22.6 score. Switzerland and UAE follow with 21.8 and 21.7 respectively. Hong Kong, Canada, Turkey and Malta are the other prominent players. Hong Kong scores 20.8. Canada, Turkey and Malta show 19.7, 18.5 and 17, respectively. 

Crypto Adoption Score By Public Adoption 

Time to consider each parameter individually. First, we can consider the parameter of public adoption. 

Countries	Score
Singapore	7.1
UAE	7.1
USA	6.3
UK	5.5
Australia	5.1
Canada	5.1
Mauritius	4.7
Hong Kong	4.6
Switzerland	3.9
Malta	3.6

Singapore and UAE dominate with the same score of 7.1. USA follows with a score of 6.3. The UK and Australia report 5.5 and 5.1 respectively, and Canada and Mauritius record 5.1 and 4.7 respectively. Hong Kong and Switzerland are other two important players. The former has a score of 4.6 and the latter has a score of 3.9. Malta, with 3.6 score, also enjoys a place in the list.      

Crypto Adoption Score By Infrastructure Adoption 

Let’s consider the parameter of infrastructure adoption. As expected, the US is the country which enjoys the top position in the list. 

Countries	Score
USA	9.6
Canada	9.3
Switzerland	9.2
Australia	9.1
UK	7.7
Hong Kong	7.5
Thailand	7.5
Monaco	7.5
Greece	7.5
New Zealand	7.4

The US shows a score of 9.6. Canada, Switzerland, and Australia closely follow with 9.3, 9.2 and 9.1, respectively. The UK, Hong Kong, Thailand, Monaco, Greece and New Zealand are the other countries who sit in this list. The UK has a score of 7.7, and New Zealand 7.4. The four remaining ones have the same score of 7.5. 

Countries with the Best Regulatory and Tax Environment for Cryptos 

One of the prime factors that influence a country’s crypto adoption is its regulatory and tax environment. In the Henly & Partners’ data set, there are provisions to generate a score considering the parameters of crypto regulation and tax environment. 

The below is the list of these countries which scores the highest when the said parameters are considered. 

Singapore naturally remains in the top most position with 18.5, reflecting how dedicated is the Asian region in developing their environment to embrace the emerging digital finance possibilities. 

Countries	Score
Singapore	18.5
Switzerland	16.5
Antigua and Barbuda	15.8
Hong Kong	15.7
UAE	15.6
Mauritius	15.4
Netherlands	14.7
Malaysia	14.5
Malta	14.4
Monaco	14.4

Switzerland and Antigua and Barbuda are the countries that follow Singapore. Switzerland shows 16.5, and Antigua and Barbuda displays 15.8. Another Asian financial centre, Hong Kong, with 15.7, enjoys the fourth position in the list. UAE and Mauritius score 15.6 and 15.4 respectively. Netherlands, Malaysia, Malta and Monaco are the other prominent players. Their scores range from 14.7 to 14.4.  

Top Countries with the Best Economic Factors for Crypto Adoption 

Is creating a crypto friendly regulatory and tax environment enough to improve the crypto adoption scenario of a country? In most cases, it is inadequate. The fact is that in the absence of a right economic environment, any effect to revamp a country’s regulatory scenario would be counter productive. 

As per the Henley & Partners data set, here are the top countries with the best economic factors suitable for the flourishing of the crypto adoption environment.  

The list is dominated by two powerful financial hubs from the Asia-Pacific region. You may have already guessed it. Yes, Hong Kong, with 9.1, and Singapore, with 8.9, are the two countries which sit in the top most positions in the list.  

Countries	Score
Hong Kong	9.1
Singapore	8.9
Switzerland	8.6
UAE	8.4
New Zealand	8.4
Luxembourg	8.3
USA	8.2
Netherlands	8.1
Thailand	8.1
Canada	8.1

Switzerland, with 8.6, and UAE, with 8.4, remain in the third and fourth positions, respectively. New Zealand, Luxembourg, the USA, the Netherlands, Thailand and Canada are the other prominent countries in the list. New Zealand and Luxembourg and the USA have 8.4, 8.3 and 8.2 scores respectively. All the three remaining ones. the Netherlands, Thailand and Canada display the same score of 8.1. 

Endnote 

In conclusion, what is clear from the data collected is that the Asia-Pacific region currently leads the world in crypto adoption, with countries like Singapore and Hong Kong poised to become global hubs for the crypto economy. As these nations continue to innovate and set new standards, they are likely to shape the future of digital finance and serve as a model for others to follow. It does not mean that the other regions perform poorly in crypto adoption. It is important to watch the developments in certain important crypto economies like the USA, India, China, Thailand, the Philippines, El Salvador, the Central Asian Republic, Brazil and even Bangladesh and Pakistan. One thing is clear that this crypto revolution is set to continue, and is likely to transform the lives of millions in near future.  

Also Read: How Regulatory Actions Impact Crypto Centralised Exchanges: A Case Study Analysis