US and China rank behind Vietnam for crypto adoption

Vietnamese prime minister pledges to regulate the burgeoning sector

Vietnam                                 
Hanoi skyline - Photo:Shutterstock
                                

Vietnam ieads the world for cryptocurrency adoption for the second consecutive year, according to Chainalysis

The blockchain analysis firm’s 2022 Geography of Cryptocurrency Report says: “Vietnam shows extremely high purchasing power and population-adjusted adoption across centralized, DeFi [decentralized finance], and P2P [peer-to-peer] cryptocurrency tools.”

The report said a poll in 2021 found that more than one in five – 21% – of Vietnamese consumers admitted to using or owning cryptocurrency.

The growing popularity of cryptocurrency has led to political parties putting increased pressure on Vietnam’s prime minister, Pham Minh Chinh, to establish a clear regulatory framework for the burgeoning sector. 

This week, Chinh discussed amendments to Vietnam’s anti-money laundering legislation, saying: “Virtual assets are not recognised, yet people continue to trade.”

US behind Philippines, Ukraine and India

The Philippines, Ukraine and India ranked second, third and fourth, respectively for cryptocurrency adoption, according to the Chainalysis report. Chainalysis said that in such lower middle income countries, citizens “rely on cryptocurrency to send remittances, preserve their savings in times of fiat currency volatility and fulfill other financial needs unique to their economies.”

The United States ranked fifth, a rise from the eighth it achieved in 2021. Although the US, the world’s largest economy, ranked in the top three in three of the report’s subcategories, it ranked 111th for population and purchasing power-adjusted P2P exchange usage. 

Chainalysis said: “This isn’t surprising, as our research shows that P2P exchange usage tends to be highest in countries with low purchasing power.”

China, despite banning cryptocurrency transactions and mining in 2021, rose from the 13th place it reached in 2021 to tenth. 

The Chainalysis report said: “While the ban initially caused a large drop-off in crypto activity, China’s market has bounced back in recent months, suggesting that the ban is perhaps ineffective or loosely enforced.”

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