Crypto as an asset has been gaining interest widely. It is definitely a topic of significant interest owing to the power of earning it gives to the individuals. This report by Coinpedia encloses the major questions related to the acceptance of crypto in 2023.
We will step-by-step unfold the adoption of crypto in 2023 worldwide by mentioning all about the leading nations which have embraced cryptocurrency and digital finance facets. We will also look at all the minute details of crypto adoption scenarios among individuals, covering the important lists like the new-comers, new countries and demographic representation of the crypto adoption in 2023.
This report holds all that one needs to know about the important events which affected crypto adoption among nations and what could 2024 have in store for all the crypto investors!
In a world on the verge of a complete financial revolution, the 2023 Global Crypto Adoption Report by Coinpedia gives us some in-depth information about how the East and the West are adapting themselves to the digital financial evolution. In this report, we will understand all about the challenges which the nations have to overcome in order to be on the crypto track. We will also shed some light on the overall market situation, adoption metrics, global patterns, and the upcoming challenges in 2024.
Key Insights India has topped 154 nations in grassroots crypto adoption.It has shown remarkable resilience in challenging regulatory conditions. Brands like Ferrari were added to the list of those accepting crypto payments in 2023.India has made a significant comeback from the year 2022. Nigeria, Vietnam, the US and Ukraine have occupied the top 5 places. This report will cover all about the recovery in grassroots crypto adoption, majorly in lower-middle-income (LMI) countries, following the 2022 FTX implosion. Grassroots crypto adoption shows the acceptance and utilization of crypto in daily life. |
If we talk about the Global Crypto Adoption Report, its goal is to combine the on-chain data and real-world information. This is done to deduct the countries leading the world in grassroots crypto adoption. It is not about the countries’ transaction volumes ( we could already guess that the wealthier countries are ahead in this case) but it highlights the countries where average, everyday people are accepting crypto the most. The Global Crypto Adoption Index is there to identify countries where people are putting a major part of their wealth in the cryptocurrency lane. In this report, we will highlight the top 20 nations with the highest level of crypto adoption in 2023.
Also Read: Crypto Mining Report 2023 : Analyzing The Impact Of Miners’ Actions On Bitcoin And Market Prices
By keeping the overall crypto landscape in mind, here are a few deductions made by the experts.
Let us have a look at the global ownership of Bitcoin in 2023:
Figure | Findings |
Bitcoin Owners | 106 million |
Daily BTC Users | 400,000 |
Bitcoin Wallets | 200m |
Bitcoin Traders | 53m |
Daily BTC Transactions | 270,000 |
The chart represents ownership of Bitcoins in 2023 region-wise (in millions)
The Year 2023 has witnessed unprecedented growth , technological innovation, more regulatory clarity, and an increment in the acceptance of cryptocurrency worldwide. Majorly, we have seen the crypto adoption by retail and institutional players in 2023.
Mass adoption
There has been a significant surge in mainstream acceptance of digital currencies. Despite so many regulations by the US SEC, cryptocurrency has seen a huge rate of acceptance among countries worldwide. Major financial giants embraced crypto, thus laying the foundation for 2024 to see a boom in mass adoption. With regulatory clarity among various jurisdictions worldwide, more traditional investors are expected to enter the market in 2024.
CBDCs (Central Bank Digital Currencies)
CBDCs have been on the radar of the banks worldwide. 2024 could be the year when several countries are foreseen to develop and implement their CBDCs. 2023 has marked a paradigm shift in the way governments look at cryptocurrencies. Let us have a look at the 2023 updates in CBDCs among different nations:
Global Patchwork of Regulations
In 2023, we saw different countries approaching crypto regulations in diverse ways, reflecting the unique economic, social and political landscapes of each region. Some of them have accepted crypto as a legitimate form of finance, while others remain sceptical.
So what’s really driving the adoption of crypto in 2023?
In recent surveys, respondents actively said that they wanted more control over their online identities and data. But is it driving folks to Web3? The evidence points to speculation! As consumers are gaining all the information about the crypto world, their interest is peaking. There have been many driving forces paving the way for crypto adoption in 2023.
Also Read: Stablecoin Performace in 2023: A Research Report on Trends, Insights, and Predictions
As the year 2023 comes to an end,we have reported all the major events which marked the adoption of crypto in 2023. This report by Coinpedia aims to highlight all the yearly developments which aided in the acceptance of cryptocurrency worldwide. We have also studied the factors which have helped in this entire process. With Bitcoin crossing the USD $40,000 mark, we are hopeful of massive 2024 profits. Do you know about the halving scenario in 2024? Do you think 2024 will be the bull season for crypto enthusiasts?
We will analyse the 2023 trends and share the crypto insights for 2024 in our yearly report on Crypto Global Adoption by Coinpedia.
We all know that El Salvador became the first country to adopt Bitcoin as legal tender, mandating that businesses accept crypto as a form of payment. Recently, the country has shown more crypto-friendliness by announcing a joint initiative with Tether called “Adopting El Salvador Freedom” that allows foreigners to obtain a Salvadoran passport in exchange for paying $1 million in Bitcoin. While some nations have put strict bans on crypto usage, others have embraced this monetary evolution dearly.
UAE becomes the country with the largest crypto ownership in 2023. With almost 28% of its population owning crypto as an asset, UAE tops the list here. It is followed by Vietnam with 18.73% and Saudi Arabia with 17.53% of the population owning cryptocurrency.
Let us have a look at the countries which are favourable for cryptocurrencies in 2023.Here is a list of the countries which are crypto-friendly in 2023:
Country | Current Scenario(Dec 2023) | Regulatory Conditions in 2023 | Crypto Taxation Policy in 2023 |
Switzerland | Hosts crypto firms like Ethereum Foundation | Favourable | Low/ No tax on crypto profits |
Malta | Known as Blockchain Island | Ruled by laws like Virtual Financial Assets Act, Innovative Technology Arrangements and Services Act, Malta Digital Innovation Authority Act | No capital gains tax on crypto transactions |
Estonia | Applying its digital-first approach to crypto sector by providing licensing system for crypto exchanges and wallet service providers | Favourable | No capital gains tax on the sale of digital assets |
Singapore | Hotspot for crypto businesses and investors | Payment Services Act to regulate crypto service providers, under the supervision of the Monetary Authority of Singapore. The act marks distinctions among payment tokens, utility tokens and security tokens. | No tax on crypto profits unless they are derived from trading activities |
Japan | Most advanced crypto market of the world. Bitcoin has been the legal form of payment since 2017. | The Financial Services Agency laid clear crypto regulations. Japan Virtual Currency Exchange Association sets standards for the crypto industry. | Income tax is levied on crypto profits for individuals , from 15% to 55% , depending on the amount |
Canada | Well-developed crypto systems exist here with local exchanges, and start-ups | Regulates crypto businesses under the Proceeds of Crime and Terrorist Financing Act | Taxes crypto profits as either income or capital gains |
South Korea | Most active crypto country for trading and adoption | Regulated crypto under the Act on Reporting and Use of Specific Financial Transaction Information | Taxes crypto profits as income at a flat rate of 20% |
Portugal | Very welcoming when it comes to crypto | Favourable | No tax on crypto profits |
Germany | Bitcoin has been a legal form of payment since 2013 here. | Regulates crypto under Banking Act | Offers tax exemption for crypto transactions held for more than a year |
Netherlands | It has many crypto exchanges, start-ups, and organizations, such as Bitonic and the Bitcoin Foundation | Self-regulatory model for crypto service providers by requiring them to register with the Dutch Central Bank | Does not tax crypto profits for individuals |
Let us see the difference in the rate of crypto adoption among countries from last year till now. Crypto adoption rate differences have been recorded from 10 countries all across the world in this table:
Country | 2022 | 2023 |
Nigeria | 45% | 47% |
Turkey | 40% | 47% |
UAE | 34% | 31% |
Brazil | 22% | 28% |
India | 22% | 27% |
Argentina | 35% | 26% |
Malaysia | 20% | 23% |
Saudi Arabia | 20% | 23% |
Switzerland | 18% | 21% |
South Korea | 19% | 20% |
Deductions from this report by Statista confirm that the consumers from countries in Africa, Asia and South America were most likely to be an owner of cryptocurrencies, such as Bitcoin, in 2023.
Also Read: Top Crypto Hacks of 2023: Analyzing the Biggest Crypto Security Breaches – Research Report
The International Summit showcased the growing rate of adoption of crypto in developing and recently developed nations as well.
The crypto landscape is going through a seismic shift and the adoption is increasing by institutional investors. No longer restricted to the finance fringes, crypto is making its way into the portfolios of some of the world’s largest banks and investment places. Here are some of the findings about the institutional adoption of crypto in 2023:
Also Read: A Detailed Report of Centralized Exchanges in 2023: Market Mayhem & Lessons Learned
Here is a list of the top 10 nations based on different adoption metrics. We have provided a description of each sub-index, how it is calculated and why we believe it is valuable for measuring the grassroots crypto adoption.
Country | Region | Overall index ranking |
India | Central & Southern Asia and Oceania | 1 |
Nigeria | Sub-Saharan Africa | 2 |
Vietnam | Central & Southern Asia and Oceania | 3 |
United States | North America | 4 |
Ukraine | Eastern Europe | 5 |
Philippines | Central & Southern Asia and Oceania | 6 |
Indonesia | Central & Southern Asia and Oceania | 7 |
Pakistan | Central & Southern Asia and Oceania | 8 |
Brazil | Latin America | 9 |
Thailand | Central & Southern Asia and Oceania | 10 |
While India beats other countries which had high rates of crypto trading as well as mining, it also came in second when looking at the top countries by raw estimated crypto value received between July 2022 and June 2023. India reported around $250 billion in crypto value in the past year, behind only the U.S. and roughly $1 trillion it recorded in crypto value received during the same time.
India currently taxes crypto gains at 30% and also subtracts 1% from the source. After TDS implementation by exchanges, many international exchanges are not doing it effectively for the users here.
Thus, allowing a rise in web traffic from India to foreign crypto exchanges. Home-grown crypto exchanges , like WazirX, saw their funds frozen and were investigated by the Enforcement Directorate (ED) last year. Indian crypto traders invest in top-value assets like Bitcoin and Ether. They also work with meme-based assets like Dogecoin and Shiba Inu.
Here is a rundown of highlights in 2023:
After 2022’s setbacks, grassroots crypto adoption dipped in Q1 and Q2. However, after U.S Bitcoin Spot ETF Speculations, the adoption rate increased comparatively.
The global crypto transaction volumes are still led by North America, backed by the U.S. 24.4% of the total transaction volume lies in the hands of North America.
Lower middle income (LMI) countries like India, Vietnam, and Nigeria outshine more developed counterparts in the crypto adoption realm.
Due to regulatory concerns, the demand for stablecoins dipped in North America. In contrast, Latin America faced high inflation, and showed rising demand for stablecoins.
Since the market peak in November 2021, the total value locked (TVL) has dropped from $180 billion to $47 billion today. However, DeFi adoption is not stagnant. In Central, Northern, and Western Europe, DeFi accounted for 54.8% of the total value of crypto assets gained. Central and Southern Asia, Oceania, and Eastern Europe also joined the line of the nations which witnessed regional year-over-year (Y0Y) growth of value sent to DeFi.
Hedging | It shows the countries leading in crypto adoption are facing inflation or currency devaluation. Nigeria, Turkey and Argentina being in the top 20 list shows the same! |
Remittances | The global remittance market was valued at $830 billion in 2022. Sending money back home can cost as much as 6.3% in countries like Mexico. Latin American countries are aggressively adopting crypto for remittances. |
Gambling, Gaming, and Speculation | While the NFT bear market may have slowed down activity, it is still a major influence on adoption. |
Store of value or portfolio diversification | BTC is up over 120% this year, making it one of the best-performing assets. |
2023 has faced a lot of challenges in terms of crypto adoption. We have compiled the top crypto adoption challenges in 2023 here:
Also Read: Crypto Market Prediction 2024: Which Sector Will Fuel the Next Bull Run?
Will cryptocurrency soar or fall in 2024? Will Bitcoin continue its volatility? Will the market be more regulated? Will crypto adoption increase in 2024? All this comes up when we look at the current crypto scenario in 2023. Our experts predict these five things for the cryptocurrency arena in 2024:
We would like to put some extra focus on Bitcoin Halving in 2024! It is a historical fact that when the availability of newly minted bitcoins goes down, the price goes up. Start dreaming of all the gains you can enjoy if you do not miss the next halving wave. Game on? We advise you to learn before investing in crypto and be 2024 ready for the major events.
This is how the crypto market has seen evolution in the last few years. With 2023 being one of the major years in its progress, we have a lot in store for 2024 too. According to the experts, Regulatory conditions and worldwide crypto adoption are going to improve as we move through this decade.
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