In 2021, Chainalysis released a report about worldwide crypto adoption recording a staggering 880% increase from 2020 to 2021. This growth becomes more noteworthy when compared to the company’s 2019 data, which showed a whopping 2300% surge. The research focused on various metrics, including overall crypto activity, volume from peer-to-peer (P2P) exchanges, and volume from non-professional traders.
Surprisingly, countries like the USA and the UK, which might be expected to lead in cryptocurrency adoption, are not at the forefront according to the data from Statista and Chainalysis. Instead, countries in Asia, Africa, and Latin America have taken the lead, particularly in terms of individual investor participation. This finding aligns with information from exchanges and on-chain providers, which indicate a significant increase in the number of accounts and crypto wallets created during this period.
How Crypto Impacts the World
As the worldwide adoption of cryptocurrency increases, so does its power to change nations — be it keeping crisis-stricken countries afloat, providing relief support, or being used as donations.
Cryptocurrencies have been a viable option for online transactions in developing nations, despite the prevailing economic challenges they face.
Africa experienced a remarkable 1200% growth in its cryptocurrency market between 2020 and 2021, based on the report published by Chainalysis. Notably, four African countries – Kenya, Nigeria, South Africa, and Tanzania – rank among the top 20 nations worldwide in terms of crypto adoption.
This surge can be attributed to the crucial role that cryptocurrencies play in empowering social and economic growth, particularly in developing countries like Africa. By providing modern banking solutions, cryptocurrencies address economic issues stemming from limited access to traditional banking systems and inadequate financial inclusion. Consequently, individuals in financially unstable countries can leverage cryptocurrencies as a vital tool for cross-border transactions, contributing to economic equality and significantly impacting the global economy.
Transparency in Every Transaction
Instances of criminal activities such as money laundering and illicit utilization of financial assets have become alarmingly common in conventional financial systems. To combat these issues effectively, a transparent and in-depth auditing and monitoring system for transactions is crucial.
Malicious entities in centralized systems that manipulate documents and transactions can be deterred by creating a digitized and automated system, capable of tracking financial transactions at a granular level. Fortunately, blockchain technology and cryptocurrencies provide a type of distributed ledger that records information for each transaction. This not only empowers individuals with the freedom and ownership of their digital assets but also minimizes the risks of fraud and corruption within financial systems.
This aspect is particularly relevant to individuals in underdeveloped countries, where the utilitarian structure of cryptocurrencies enables them to transact with the global economy. By becoming part of the bigger picture, they can reinforce their own economy and improve their quality of life.
Due to their decentralized nature, cryptocurrencies create a global economy in which all users can participate. This fosters support for new businesses and encourages competition in financial services.
Entrepreneurs, seeking a global audience with a broader reach, are particularly drawn to cryptocurrencies. International laws and exchange rates often pose obstacles for these individuals. However, certain cryptocurrency companies facilitate financial transactions between business owners in underdeveloped countries like Africa and European, American, and Asian companies, thereby expanding financial coverage and liberating money through global exchanges.
Helping Nations Impacted by Conflict
The swift and efficient nature of cryptocurrency has had a significant impact on providing assistance to those affected by conflict. A total of $56 million in cryptocurrency was donated to the wallet addresses provided by the Ukrainian government and charitable organizations that accept digital currencies within a month after the international conflict began.
This instance also exemplifies how governments promote the adoption of digital assets by accepting them as donations during challenging times. At the start of the conflict, the official Twitter account of Ukraine issued a call for cryptocurrency donations. The tweet included wallet addresses for various tokens such as Bitcoin and Ether, urging individuals to lend their support to the country amidst the crisis.
Compassion is as Borderless as Crypto
Cryptocurrency continues to revolutionize the socio-economic fabric worldwide. Not only has it been imparting its value and benefits to the economy, but it has also been empowering individuals and enabling them to participate in the global economy. Crypto has shown that it can do more than transform the way we transact. But it has also proven that it can change how we can extend a helping hand anywhere in the world.
Stay updated by following Tokex on their social media accounts: