Surprisingly, it’s not developed nations like the United States, but developing nations leading the world in cryptocurrency adoption. A report by financial product comparison website Finder.com has come to the conclusion that across 27 countries in Europe, Asia, and the Americas, Vietnam is the leading country in terms of adopting crypto.
Vietnam tops the list
Finder surveyed 42,000 people across 27 countries and Vietnam came out on top, with 41% of respondents claiming they had purchased cryptocurrency. 20% of Vietnamese, the highest share of all countries polled, said they had purchased Bitcoin. The United States ranked only 26th out of 27 countries, with 9% of adults owning cryptocurrency, far below the average of 19%. Only the United Kingdom has a lower percentage of crypto owners with 8%.
The top five countries for cryptocurrency ownership:
- Vietnam – 41%
- Indonesia – 30%
- India – 30%
- Malaysia – 29%
- Philippines 28%
Strong adoption rates can also be observed in many Latin American countries. For instance, 22% of Brazilians claimed to have purchased crypto. Each country was represented by 1,160 to 2,511 respondents, although the report clarified that due to varying Google infrastructure in each territory, not all surveys were nationally representative.
Why emerging countries rank ahead of developed nations
Many financial professionals in advanced economies see cryptocurrencies with suspicion. “Crypto bros” are treated with disdain and ridicule, fully expected to crash and burn at the next market correction. Regulators in Europe and the U.S. have taken off the gloves when it comes to putting cryptocurrencies in their place.
In the developing world, crypto seems to be building deeper roots. Unsurprisingly, many Latin American countries display fairly high adoption rates. In a region plagued with high inflation rates, dubious fiscal policies, and poor financial infrastructure, cryptocurrencies provide a solution the traditional financial market doesn’t. El Salvador has famously made Bitcoin legal tender, forcing merchants to accept it as payment and breaking new ground, for better or worse. It is hardly going to remain the only country to do so.
Commercial and central banks in emerging markets don’t live up to the task of providing a stable unit of account. Financial restrictions and outdated banking systems add insult to injury, which is why emerging market citizens happily accept dollars. However, capital controls try to prevent that, and that is where cryptocurrencies come in. They slash the financial and bureaucratic cost of legacy financial solutions and provide a tamper-proof payment system. Crypto is quickly replacing traditional remittance payment providers as the go-to solution.
Not everyone’s happy
Naysayers remain steadfast about the potential dangers of crypto. The IMF warned of the inherent dangers of adopting cryptocurrencies as legal tender. Those would undermine “macroeconomic stability” and potentially expose financial systems to widespread illicit activity. The UK’s FCA and The Base committee of global banking regulators have voiced similar criticism. Proponents of crypto dismiss that as legacy institutions recognizing their weakening grip on the economic development of emerging nations. Wherever the truth lies, cryptocurrencies are here to stay.