In the 12 months up to June 2021 the cryptocurrency market grew by 706 percent and reached a value of $572.5 billion (roughly Rs. 42,62,844 crores) in Central and Southern Asia, and Oceania (CSAO). These regions have emerged as one of the fastest growing crypto markets in the world, with Asia containing the top three countries, respectively Vietnam, India, and Pakistan that have witnessing rapid crypto expansion in a year. According to a recent report by market research firm Chainalysis, cryptocurrency is witnessing adoption at the grassroots level in CSAO countries, driving the quick expansion of the emerging digital financing space.
In India, that ranks second on the Global Crypto Adoption Index, 42 percent of the crypto transactions were hefty and institutional-sized, usually amounting to over $10 million (roughly Rs. 74 crore). As per Chainalysis, the trend of paying large amounts of funds via cryptocurrencies is indicative that smart money adoption is on a rise in several nations of the CSAO region.
“Two things stand out: One is that India and Vietnam’s markets are much larger than Pakistan’s. The other is that India has a much bigger share of activity taking place on DeFi (Decentralised Finance) platforms at 59 percent, versus 47 percent for Vietnam and 33 percent for Pakistan,” the report said. “All three regions grew substantially over the last year. Pakistan experienced the most growth at 711 percent, just ahead of India at 641 percent.”
Crypto mining, exchange platforms, related gambling apps as well as other forms of illicit activities in the crypto space have also emerged as reasons of its growth in the CSAO region.
Despite countries like Russia and China among others imposing bans on crypto-activities, several other nations are showing keenness to explore the futuristic financial system – that is quick and not regulated by any bank as yet.
Africa, for instance, registered 1,200 percent growth of its crypto market in the last one year, a separate report by Chainalysis had claimed earlier in September. Financially, the crypto market in Kenya, Nigeria, Tanzania and South Africa reached the valuation of a whopping $105.6 billion (roughly Rs. 775 crores) between July last year, and June 2021.
The region of Central, Northern and Western Europe has become the world’s largest crypto economy, with over $1 trillion (roughly Rs. 74,46,016 crore) in transactions over the same period.
With Dubai and Miami, US gearing up to host crypto and Bitcoin-focussed mega events in the coming days, discussions around the future of cryptocurrencies are expected to gather heat.
El Salvador is also making strides to associate Bitcoin mining facilities with volcanic thermal energy — in order to reduce the carbon footprint of miners.
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