Chainalysis Report Highlights Central & Southern Asia’s Dominance in Crypto Adoption, US in 4th

Leading blockchain analysis company, Chainalysis, has just released the 2023 Global Crypto Adoption Index. The report provides insights into global cryptocurrency adoption patterns, highlighting some significant trends.

One of the major takeaways from the index is that the United States occupies the fourth position in global crypto adoption. India, Nigeria, and Vietnam are ahead of the US in this respect. Interestingly, North America sees representation from only two countries in the top 20: the United States and Canada. The latter stands at the 19th position.

Central & Southern Asia and Oceania are dominantly present in the index. Seven countries from this region are ranked among the top 20.

Going into the specifics, Chainalysis asserts that North America holds the title as the crypto usage champion. From July 2022 to June 2023, the region saw an estimated crypto value reception of $1.2 trillion on-chain, making up approximately 24.4% of the worldwide total. The US alone accounted for over $1 trillion, while Canada and Bermuda shared the remainder, which was less than $200 billion.

The report also reviews the dynamics of stablecoin regulations and activity. Despite the majority of stablecoin activities being associated with US dollar-pegged coins, a notable shift is occurring. The Chainalysis report points out, “Since spring of 2023, the majority of stablecoin inflows to the 50 biggest crypto services have shifted from US licensed services to non-U.S. licensed services…” This means that while US entities once played a pivotal role in stabilizing the stablecoin market, there’s a growing trend of users opting for foreign-based trading platforms. This shift compromises the US’s oversight capabilities, causing US consumers to miss out on potential stablecoin opportunities under the protective umbrella of the US regulatory framework.

In conclusion, for the crypto industry to flourish while ensuring consumer safety, the report is suggesting that US policymakers will need to devise appropriate stablecoin legislation.