According to some data recently published by Chain analysis, Ukraine surprisingly ranks first in the 2020 Global Cryptocurrency Adoption Index, followed by Russia and Venezuela.
The index considers three types of string data– The total value of cryptocurrency transactions, weighted by purchasing power per capita (PPP), the value of retail transfers against PPAs and the number of cryptocurrency deposits in relation to the number of internet users.
The index also takes into account those Volume of transactions made in peer-to-peer trading (P2P) weighted both according to the number of internet users and according to PPP.
The report shows unequal levels of development in the cryptocurrency sector in many countries: for example, Chinaeven though they come first for the total value of the transaction, It only ranks fourth due to the low number of deposits and P2P transactions between users relative to the population.
Vice versa, the two nations with the highest trading volume on P2P exchanges, Kenya and Venezuela, are in the top 5 in the overall ranking, although they are in the top ten for no other value.
However, Too much emphasis on P2P trading volume could result in neglecting the establishment of local regulated exchanges as an indicator of the adoption of cryptocurrencies and skew results in favor of developing countries that do not have a strong financial sector. For example, this likely helped rank the United States below Kenya. although the United States outperformed the African nation on three of the four criteria.
Describes chain analysis Venezuela as an “excellent example” of the factors driving the adoption of cryptocurrencies in emerging marketsHighlighting their high usage rate among Venezuelan citizens who use them to alleviate economic instability:
Our data shows Venezuelans are more likely to use cryptocurrencies when the country’s fiat currency is depreciating due to inflation. This suggests that Venezuelans are turning to cryptocurrencies for savings they might otherwise lose.
The report also shows some unexpected results, Vietnam is the second largest transaction value in retail and in general by the total number of chain transactions, despite some attempts by the local government to prevent the use of cryptos.
To the last, It should be noted that no Western European nation makes it into the top 10 on the Chain Analysis Index.