Emerging markets in Central and South Asia have seen a dramatic increase in cryptocurrency transactions, highlighting a wide range of motivations among locals for exposure to digital assets such as Bitcoin (BTC) and Ether ( ETH).
New research from blockchain analytics firm Chainalysis reveals crypto transactions have jumped 706% in Central and South Asia and Oceania – a vast region that includes countries like India, Pakistan and Vietnam – between July 2020 and June 2021. In dollar terms, the value of transactions amounted to $ 572.5 billion, or 14% of the overall value of transactions.
Institutional and large payments accounted for the highest percentage of transactions, providing further evidence of smart money adoption of cryptocurrency. This trend was most pronounced in India, where large institutional-sized transfers over $ 10 million accounted for 42% of transactions. For Vietnam and Pakistan, this figure was 29% and 28% respectively.
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The study is the second installment in a series of regional reports from Chainalysis on cryptocurrency transactions. The first report, which was released last week, found that the Central, Northern and Western European region has emerged as the world’s largest crypto economy, with over $ 1,000 billion in transactions. during the same 12 month period. Institutional transactions in Europe amounted to $ 46.3 billion in June 2021, up from $ 1.4 billion in July 2020.
While Europe dominates in crypto transactions, Asian countries lead in overall adoption, measured by value received on chain, retail chain transactions and peer-to-peer transaction volumes. Vietnam, India and Pakistan respectively ranked first and third in Chainalysis’s 2021 Global Crypto Adoption Index.
As Cointelegraph previously reported, emerging markets in Asia, Africa, and South America are turning to Bitcoin and other digital assets to fight hyperinflation, capital controls, and currency policies. strict.
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Peer-to-peer crypto exchanges have taken root in Africa, with countries like Kenya and Nigeria increasingly relying on platforms like LocalBitcoins and Paxful. Latin America, meanwhile, is now home to two crypto exchange unicorns and the first country to officially adopt Bitcoin as legal tender, El Salvador.