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TL;DR
- Bangladesh ranks 35th in the 2024 Global Crypto Adoption Index by Chainalysis, despite legal restrictions on cryptocurrency use in the country.
- India, Nigeria, and Indonesia top the global ranking, with India leading despite its strict regulations and penalties on crypto exchanges.
- The index reveals significant crypto adoption in Central and South Asia, with seven of the top 20 countries coming from this region and Oceania.
- The report suggests that legal restrictions may not effectively curb public interest and engagement with cryptocurrencies, as evidenced by high adoption rates in countries with strict regulations.
Bangladesh has secured the 35th position in the 2024 Global Crypto Adoption Index, as reported by blockchain analytics firm Chainalysis. This ranking comes despite the country’s legal restrictions on cryptocurrency use, highlighting a significant level of crypto adoption among its residents.
The Chainalysis report, which evaluated 151 countries, reveals that cryptocurrency usage in Bangladesh remains substantial, even though virtual currencies are not legally recognized by the government. This trend persists despite a warning issued by Bangladesh Bank in 2021, urging citizens to refrain from engaging with digital currencies such as Bitcoin and Ethereum. The central bank’s warning emphasized that these currencies lacked authorization from any legal authority, raising concerns about financial stability and potential misuse in illicit activities.
The Global Crypto Adoption Index categorizes countries based on their usage of cryptocurrencies across various services, including centralized exchanges and decentralized finance (DeFi) protocols. Notably, India, Nigeria, and Indonesia claimed the top three positions in the ranking, indicating a surge in cryptocurrency adoption across Central, South Asia, and Oceania. Pakistan and Nepal also showed strong performance, with Pakistan ranking 9th and Nepal 71st.
Eric Jardine, head of research at Chainalysis, commented on the growing trend of cryptocurrency adoption:
“Cryptocurrency adoption is growing across many countries, including those with strict regulations like Bangladesh and India. In some countries, the restrictions have not curbed the enthusiasm for digital assets, as evidenced by India’s number one ranking despite its long-standing crypto ban.”
India’s top ranking is particularly noteworthy, given its hard-line stance on cryptocurrencies. Despite issuing penalties to international exchanges like Binance and KuCoin, India leads the world in grassroots cryptocurrency adoption.
The Chainalysis index further revealed that seven of the top 20 countries in the global adoption ranking are from the Central and South Asia and Oceania regions, underscoring the region’s significant role in the global cryptocurrency landscape.
This report highlights the complex relationship between regulatory environments and cryptocurrency adoption, suggesting that legal restrictions may not always be effective in curbing public interest and engagement with digital currencies.
News Source: The Daily Star
