Which developing countries are accepting Cryptocurrencies as one of their main currencies?
Bitcoin isn’t just getting a lot of attention these days. Its adoption is on the rise, and the list of countries using Bitcoin is growing.
Currently, Bitcoin is used in everyday life in developing countries. These countries have shown us that Bitcoin is more than
Let’s get straight to the point and take a look at the countries with the highest adoption rates:
Bitcoin countries to watch
1. Nigeria
As we all know, Nigeria has long been a leader in Bitcoin adoption. According to a recent study in KuCoin’s “Into the Cryptoverse Report,” 33.4 million Nigerians have owned or traded cryptocurrencies, reaching a 35 percent adoption rate among 18- to 60-year-olds.
Furthermore, according to the report, 52% of Nigerians (about 17.3 million people) have allocated more than half of their wealth to assets such as Bitcoin. 70% of these investors also plan to increase their investment in the sector by the end of the year.
One of the main reasons behind this high adoption rate is the limited access to traditional currency services, which has resulted in Nigeria being rated as “ the world’s leading country in the adoption rate of Bitcoin and cryptocurrencies per capita. ” Bitcoin transactions in Nigeria Globally leading in volume – a situation directly related to “ loss of confidence in traditional forms of investment,” according to Ijeoma Ndukwe.
2. Kenya
According to a report by TripleA, 8.5% of Kenyans (about 4.5 million people) currently own cryptocurrencies. The country ranks first in trading volume on peer-to-peer platforms and fifth in the world in total cryptocurrency activity.
Among all African countries, Kenya leads the way in terms of holdings and blockchain-related transactions. In fact, as of January 2018, Kenya’s Bitcoin holdings accounted for more than 2% of the country’s GDP.
Overall, Kenya is one of the largest bitcoin countries in the world, with a 94.7% interest in bitcoin searches in the country’s search results, ranking in the top 10 in Google searches dedicated to the topic of “cryptocurrency”.
3. El Salvador
In 2021, El Salvador will make Bitcoin the country’s legal tender. President Nayib Bukele announced that the decision was made to make financial services more accessible to the public, thereby improving the financial well-being of people across the country.
Bukele has since said several times that the decision helped boost the economy, make financial services more accessible, and more. In May 2022, the president also encouraged emerging nations to adopt Bitcoin at the annual meeting of the Alliance for Financial Inclusion (AFI).
4. Vietnam
Vietnam is gradually growing into a Bitcoin world powerhouse. The 2021 Global Cryptocurrency Adoption Index report aims to provide indicators to “objectively measure which countries have the highest cryptocurrency adoption rates.” In this report, Vietnam ranks first out of 154 countries with a perfect score of 1.0. By comparison, neighboring countries such as Thailand and China scored 0.17 and 0.16, respectively, and the United States scored 0.22. In second place is India, with a score of 0.37, a big gap with Vietnam.
Countries like Vietnam have shown us that Bitcoin is more than just an investment. Their rankings in the index gain attention because they clearly focus on ordinary people (through on-chain metrics and research) compared to large institutional investors (led by the US).
Why Bitcoin adoption is on the rise in these countries
Now that we know the leading countries behind the rise in Bitcoin adoption, let’s take a look at a few reasons why they are embracing the technology.
1. Alternatives to Difficult Currency
Bitcoin has proven time and time again that it is a viable store of value, ideal for those who do not want to lose the value of their funds. For example, if you live in a country with rising inflation, a cryptocurrency like Bitcoin can help you preserve your assets.
With platforms like Bitcoin and Paxful, you can easily convert your funds, use them for real-world transactions, and maybe even see your funds appreciate in value over time.
2. Reliability for trading
As the global adoption rate gradually rises, more and more businesses are beginning to accept Bitcoin as a means of payment. Today, it’s no longer out of reach to buy a cup of handcrafted coffee, a flight to your destination, concert tickets to your favorite artist, and more with Bitcoin.
Especially with a platform like Paxful, you can transact with over 350 payment methods. Want to use bitcoin at a store that doesn’t accept it yet? All you need to do is convert your BTC to one of Paxful’s many payment options and use it to pay. The best part is that you can even profit from conversions.
Additionally, some of the most popular Bitcoin wallets have added features like the Lightning Network, making the process of actually transacting with BTC much cheaper and more efficient.
3. Help for the unbanked
The traditional banking system works wonders for all users who can use the system. The problem is, not everyone has the same access. According to a study conducted in 2020, more than 2 billion people around the world do not have access to these services. That is, these people cannot participate in the trading activities that many people around the world enjoy.
Since Bitcoin is decentralized in nature, it allows anyone to participate, all you need is a stable internet connection and a Bitcoin wallet. On platforms like Paxful, you can start trading as soon as you create an account (just an email address or phone number). With over 350 payment methods to choose from, you can buy Bitcoin in any way that is convenient for you and then sell it for conversion.
4. People can earn extra income
Bitcoin and its real-world use cases offer multiple ways for everyone to earn extra income. In this space, there are many strategies to choose from, such as HODLing (holding for the long term), Day Trading (day trading), and more – you just need to choose a strategy that suits your needs, and you are ready to go.
A great example is Ishtaq, one of our featured users in our Be the Change campaign. In 2020, he encountered difficulties in finding a job and barely survived. By the time we spoke to him in 2021, he had already traded over $300,000 and started his own digital marketing agency.
With Paxful, you can transfer money however you want. Buy, sell, trade, earn and save with just a few clicks.
Developing Countries: Frontiers of Bitcoin Adoption
Seeing how these countries are using Bitcoin makes us think that the rest of the world has a long way to go. Nigeria, Kenya, El Salvador, and Vietnam have confirmed to us that Bitcoin is no longer just a tool for ROI, it can also help millions of people around the world.
People in these countries are using Bitcoin for more efficient transactions, wealth preservation, e-commerce, remittances, and more, yet there are still a lot of people who only care about the price of Bitcoin. For this segment of the population, we would say that there is still a lot to learn from people who have already realized the full potential of Bitcoin.
(Forex Broker)
Comment by Hans
April 24, 2024
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