Crypto adoption: a look at the countries with the highest crypto ownership rates
The fact that crypto has revolutionized the world of finance is a secret to no one. Digital currencies have introduced a new paradigm for money – one that’s based on principles like decentralization, transparency, privacy, self-custody, borderless transactions, financial equity, and inclusion. The jump in the Bitcoin price USD has put crypto in the spotlight, securing its spot in the minds and hearts of consumers. Fifteen years after their debut, digital currencies seem to be everywhere: in the news, in retail, in financial services, on regulators’ agendas, and in people’s virtual wallets and investment portfolios.
However, not all countries have been as eager to embrace crypto. Some have been adamant in their rejection of this novel asset class, as is the case with China. Despite its staggering development, it can’t be ignored that crypto has also given rise to numerous controversies and polemics over the years due to risks associated with its now-famous volatility and instability.
This explains why crypto adoption hasn’t followed a uniform and smooth progression and why some countries are more crypto-friendly than others. There are currently major discrepancies in crypto ownership rates around the world as different jurisdictions have adopted different approaches and stances on crypto.
Regardless of the hurdles, crypto continues to push forward, aiming for mainstream acceptance, and the countries that boast high crypto ownership rates are facilitating its advance.
Crypto ownership hotspots around the world
A 2023 report from crypto payment gateway Triple-A reveals the top ten countries with the highest cryptocurrency ownership rate, so let’s take a closer look at the nations that have made the list.
United Arab Emirates (UAE)
According to the report’s data, the UAE takes the top spot, emerging as the undisputable leader in global crypto adoption with an ownership rate of 30.4%. This means that over 3 million UAE residents owned crypto as of 2023. The figures reflect the country’s crypto-friendly environment and proactive approach to crypto regulations which have attracted a large number of international companies and investors.
Vietnam
Coming in on the second spot is Vietnam with over 21% of its population owning digital assets. Vietnam’s large unbanked population, high internet penetration, and the fact that crypto holdings are exempt from taxes are the main factors that have contributed to crypto’s rising popularity and high ownership rate in the country.
United States (U.S.)
Despite being the fourth largest country by area and having the biggest economy in the world, the US only ranks third in the hierarchy of nations with the highest rates of crypto ownership. By the latest count, more than 53 million people in the US have invested in crypto. The country’s relationship with crypto has been complicated, to say the least, but this year’s approval of spot Bitcoin and Ether exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission has marked a major step forward for the industry, which can pave the path for greater crypto adoption across the nation.
Iran
Iran occupies a surprising fourth position in the race for crypto adoption, with an ownership rate of 13.5%. The country’s growing interest in digital currencies is most likely driven by their decentralized nature which allows Iran to sidestep international sanctions that hamper its trading relations with other nations.
Philippines
Similar to Iran, the Philippines has an estimated crypto ownership rate of 13.4%, meaning 16 million of its citizens own digital assets. Crypto adoption in the Philippines is largely linked to the use of digital assets for gaming and gambling activities, which enjoy a high level of popularity in the country, especially among younger generations. Play-to-earn games such as Axie Infinity seem to play a key role in the phenomenon.
Brazil
Brazil stands out in the global crypto landscape with a 12% crypto ownership rate which translates into nearly 26 million crypto owners across the nation. As Brazil’s population becomes more aware of the benefits that digital assets provide, such as financial inclusion, fast and cost-effective transactions, safety, and accessibility, their interest in crypto continues to grow.
Saudi Arabia
An 11.4% crypto ownership rate might seem surprising for a country once known for its ultra-conservative stance on political and economic matters. However, Saudi Arabia’s massive liberal reforms as well as its young, tech-savvy population and strong internet penetration have laid the groundwork for the development of a thriving crypto environment.
Singapore
As a tech powerhouse and the global capital of innovation, Singapore’s appetite for crypto comes as no surprise. The favorable fiscal policies have also paved the path for smooth crypto adoption. The cryptocurrency ownership rate in the country stands at a little over 11%, with 665,000 individuals actively participating in the crypto market.
Ukraine
Ukraine makes for a very interesting entry, with 10.6% of its population using digital assets. In Ukraine’s case, the increased openness to crypto is not as much driven by peoples’ interest in emerging technologies as it is by the ongoing military conflict with its neighbor Russia.
Venezuela
The last country on the list, Venezuela has a crypto ownership rate of 10.3%, accounting for 3 million citizens. As is the case with many other nations that have opened their doors to this promising asset class, Venezuela’s longstanding socio-economic hardships, including rising inflation, budget deficit, and food shortages have prompted its population to turn to crypto in search of a solution.
While the social, political, and economic contexts in each of these countries may differ and the factors driving crypto adoption vary from one region to another, there are also common denominators that can explain this phenomenon.
Advances in technology and crypto regulations, widespread media coverage as well as growing cryptocurrency awareness seem to be the binding ingredients that are powering the adoption of cryptocurrencies worldwide. With more people using crypto on a global level, the future seems brighter than ever for digital assets.
