A report by Blockchain.com that looked into the rise in crypto adoption reveals India holds the second-highest number of blockchain wallet transactions.
The data was obtained from a survey conducted in July, showing a 17.4% surge in activities of blockchain wallet transactions in India, while Peru topped with 18.3%.
Moreover, the report revealed that digital assets outperformed traditional assets during the survey period. The best performer in the financial market for July was Ethereum, which saw a 57% gain, followed by BTC with 24%.
On the other hand, traditional assets like gold and the S&P 500 index gained 11%, and 6%, respectively. The US dollar was the worst performer of the bunch, as it declined by 4%.
Crypto Adoption Is Rapid in Developing Countries
The rise of crypto adoption in India comes at an exciting time when the country grapples over whether to embrace digital assets as authorities consider a new crypto ban.
In March 2020, the IAMAI, an industry body representing crypto businesses in India, succeeded in its appeal to the Reserve Bank of India (RBI) circular.
That appeal resulted in a ground-breaking reversal of the country’s cryptocurrency banking ban, marking a positive step toward a resurgence of the Indian crypto space.
India isn’t the only county that is quickly adopting crypto, as per another blockchain analysis published in April 2020.
The report focused on a social experiment conducted by a team from the analytics project Onfo. It features a look at four different countries, including the U.S., Germany, Indonesia, and Russia.
According to the results displayed below, crypto spread four times faster in developing nations like Indonesia than developed countries like the US.
The report’s authors also noted that many African countries are seeing the beginning of a “crypto renaissance,” with South Africa having the highest rate of cryptocurrency ownership and use among internet users in Africa.
Moreover, crypto volumes traded on P2P platforms in Sub-Saharan Africa overtook Latin America for the first time in April 2020.
Developing Countries are Ripe For Digital Currencies
In developing countries, most domestic currencies are weak and hold little to almost no value. What’s worse, local currencies are influenced heavily by even the slightest economic change causing high inflation rates.
By adopting Bitcoin or other digital assets that operate on a global platform, individuals can instantly have a currency that won’t be influenced by changes within their localized economy.
Moreover, there is a vast untapped market for cryptocurrency in developing countries where most of the population is unbanked. Those without access to traditional bank accounts need inventive solutions for financial inclusion.
To this end, the World Bank identified the potential of crypto use in India and other developing countries via smartphones.
Mobile Crypto trading applications such as Nuo or Instadapp are already closing the financial inclusion gap by fostering mass adoption of crypto. Similar platforms could offer solutions to the unbanked in other developing nations.