According to the 2022 Global Crypto Adoption Index published by analytical company Chainalysis, Indonesia has entered the top 20 countries with the highest cryptocurrency adoption in the world. The index was released on September 14, 2022 and assesses the level of cryptocurrency adoption in various countries.
Some Key Highlights from the Global Crypto Adoption Index
In this index, the top 20 countries include Vietnam, Philippines, Ukraine, and India. Indonesia ranked 20th, indicating increasing interest from non-professional individual investors in digital assets.
Emerging markets like Indonesia are outperforming more mature markets in crypto adoption, demonstrating the value that cryptocurrencies offer in an economy that needs a stable alternative to national currencies and also makes it easier to send money from abroad.
This index combines five sub-indices that are influenced by the use of different types of crypto services in each country:
The amount of cryptocurrency value accepted on centralized exchanges (weighted based on Purchasing Power Parity per capita)
Total retail value accepted on centralized exchanges (weighted based on Purchasing Power Parity per capita)
Peer-to-peer (P2P) exchange trading volume (weighted by Purchasing Power Parity per capita and internet users)
The amount of cryptocurrency value received from DeFi protocols (weighted based on Purchasing Power Parity per capita)
The amount of retail value received from DeFi protocols (weighted based on Purchasing Power Parity per capita)
Using these sub-indices, it considers transaction volumes for various services and protocols, by estimating volumes based on web traffic data. The number of evaluated transactions is very large, so VPN usage would have to be very high to interfere with the evaluation results, which adds confidence to this methodology.
Global Crypto Adoption: Trends and Insights
Despite the bear market, global crypto adoption remains above pre-bull market levels. This shows that people who were attracted by rising prices in 2020 and 2021 are still investing large amounts in digital currencies.
General public adoption dominates in emerging markets. Of the top 20 countries, ten are classified as "lower middle income," including Indonesia, and another eight as "upper middle income."
Vietnam remains ranked first for the second year in a row, showing a high level of adoption of DeFi, P2P, and centralized crypto tools. Despite a nationwide ban on crypto trading, China is back in the top ten in this index.
Cryptocurrency Landscape in Indonesia
Indonesia's entry into the top 20 marks an important milestone in the world of cryptocurrency, symbolizing the potential of emerging markets in shaping the future of digital finance.
As we prepare for the next wave of financial globalization, the unique needs of economies like Indonesia and the solutions offered through cryptocurrency adoption are drawing attention to its innovative potential. As adoption rates increase in these countries, we can expect new opportunities for progress and prosperity.