In the 12 months leading up to June 2021, the cryptocurrency market in Central and Southern Asia and Oceania (CSAO) grew by 706 percent and reached a value of $572.5 billion (approximately Rs 42,62,844 crore). These regions have emerged as one of the fastest growing crypto markets in the world, comprising the top three countries in Asia, Vietnam, India and Pakistan, respectively, which have seen rapid crypto expansion in a year. According to a recent report by market research firm Chainalysis, grassroots adoption of cryptocurrencies in CSAO countries is leading to the rapid expansion of the emerging digital financing space.
In India, which ranks second in the Global Crypto Adoption Index, 42 percent of crypto transactions were heavy and institutional-sized, typically amounting to more than $10 million (about Rs 74 crore). According to Chainalysis, the trend of paying large amounts of money via cryptocurrencies is an indication that smart money adoption is increasing in many countries in the CSAO region.
“Two things stand out: One is that the markets in India and Vietnam are much larger than those in Pakistan. Secondly, activities on DeFi (decentralized finance) platforms account for a much larger share in India compared to 59 per cent, 47 per cent for Vietnam and 33 per cent for Pakistan,” the report said. Areas have increased significantly over the previous year.Pakistan experienced the highest growth of 711 per cent, ahead of India at 641 per cent.
Crypto mining, exchange platforms, related gambling apps as well as other forms of illegal activities in the crypto space have also emerged as reasons for its growth in the CSAO sector.
Despite countries such as Russia and China banning crypto-activities, many other countries are showing eagerness to explore the financial system of the future – one that is accelerated and not yet regulated by any bank.
Africa, for example, has recorded a 1,200 percent growth in its crypto market over the past year, as a separate report from Chainalysis claimed earlier in September. Financially, the crypto market in Kenya, Nigeria, Tanzania and South Africa reached a valuation of $105.6 billion (about Rs 775 crore) last year between July and June 2021.
The region of Central, Northern and Western Europe has become the world’s largest crypto economy, with over $1 trillion (about Rs 74,46,016 crore) in transactions in the same period.
With Dubai and Miami set to host crypto and bitcoin-focused mega-events in the coming days, discussions about the future of cryptocurrencies are expected to heat up.
El Salvador is also striving to combine bitcoin mining facilities with volcanic thermal power – to reduce the carbon footprint of miners.
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