India has achieved the top rank among 154 nations in grassroots crypto adoption, displaying remarkable resilience in the face of challenging regulatory conditions, as revealed by Chainalysis’ 2023 Global Crypto Adoption Index.
Key Parameters and India’s Success
India has secured the first position in four critical parameters:
- Centralized Service Value Received
- Retail Centralized Service Value Received
- DeFi Value Received
- Retail DeFi Value Received
This impressive ascent from fourth place last year underscores India’s growing embrace of cryptocurrency among everyday citizens.
Understanding Grassroots Crypto Adoption
Grassroots crypto adoption goes beyond raw transaction volumes. It reflects the extent to which ordinary people in a country are enthusiastically adopting cryptocurrency. It’s about the widespread acceptance and utilization of crypto in daily life.
India’s pioneering position is followed closely by:
- Nigeria, ranking second in the index.
- Vietnam, securing the third spot.
- United States, holding the fourth position.
- Ukraine, coming in fifth.
Crypto Adoption in Low-Income Countries
A noteworthy trend identified in the report is the dramatic increase in crypto adoption in low-income countries. This surge was triggered by the collapse of FTX, which occurred late in 2022. Despite initial setbacks, these nations have shown remarkable resilience in embracing cryptocurrencies.
Challenges Faced by India
India’s impressive crypto adoption is particularly remarkable given the challenges it faces. The government has introduced stringent taxation rules, including a 30% tax on gains and a 1% TDS (Tax Deducted at Source) on crypto trades. These measures have adversely impacted trade volumes within the country.