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Crypto Adoption: An Outlook Across Emerging Markets
- The crypto scenario in different countries
- Which are the emerging markets for the crypto industry?
- The why and how behind every emerging market
The prevalence of crypto differs from country to country. But, why are some countries more predisposed to the adoption of cryptocurrencies than others? Which countries are likely to jump on the crypto bandwagon soon?
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The Crypto Scenario According to Country
The top three countries with the highest crypto adoption rate are Brazil with 18%, Colombia also with an 18% adoption and Turkey, snagging first place with a 20% adoption.
53% of the Turkish population believes that cryptocurrencies are the future when it comes to ecommerce. Why? The answer is a financial system which does not function well. This, coupled with a devaluation of the nation’s currency and failing trade relations between Turkey and the US drove more people to adopt cryptocurrencies.
Similar conditions in Brazil and Colombia have created the perfect environment for people to choose this new form of currency. Corrupt governments and the inflation of national currencies are hurdles that need to be dodged. As a result, the power of cryptocurrencies is embraced in a bid to escape these unfavorable conditions.
Which are the emerging markets for the crypto industry?
In the wake of the Covid-19 pandemic, financial markets all over the world are experiencing economic difficulties. Weakening currencies along with possible inflation may set the scene for a fast adoption of cryptocurrencies. But which are the emerging markets? And why are they more likely to shift the financial landscape and adopt cryptocurrencies?
The Middle East
Speculations are rife that the Middle East is next in line when it comes to using cryptocurrencies on a larger scale. In April, The Arab Weekly published an article which highlighted how failing banking systems are destabilizing Lebanon. Moreover, protests near banks all over the country have even had fatal outcomes, with people complaining that they are unsure if banks are able to give them money. This type of festering political environment may well push trust in the direction of new forms of currencies.
In 2019 interest in cryptocurrencies skyrocketed across the African continent. Interest that propelled further with the onset of coronavirus.
While physical stores are closed, online trading has surged and more bitcoins are being bought to supply this trading activity. Ghanaian exchange founder Nawaf Abd of eBitcoinics even reported servers going down in April due to overwhelming traffic on his site.
While cryptocurrencies are certainly not novel to this region, more countries are set to seize this new form of financial exchange. Venezuela’s uncertain political climate is likely to have played a part in the impressive rate of cryptos adoption in the last year. The Open Money Initiative and the Colombia-based start-up Valiu noted a huge demand for fiat remittances and dollar-denominated savings from Venezuelans. This is thought to have been a direct result of the economic collapse of Venezuela pre-corona.