Recent data from Chainalysis showed Ukraine a stunning first place in the 2020 Global Cryptocurrency Adoption Index, followed by Russia and Venezuela.

The index takes into account three accounts in the chain: the total value of cryptocurrency transactions in the chain, weighted by per capita purchasing power, or PPP, the value of retail transfers in the chain, weighted by PPP, and the number of cryptocurrency deposits in the chain. Weighted by the number of internet users.

The indicator also affects the volume of transactions that take place over the peer-to-peer cryptocurrency exchange, weighted by the number of Internet users and PPPs.

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The report shows a varying level of development in the cryptocurrency sectors in many countries, while the index weight per capita rates China poorly in network deposits and P2P trading due to its large population – and places the country in fourth place overall, despite the fact that China is dominated. Ranking on the chain in terms of retail and total value.

On the one hand, the two countries with the highest P2P exchange volume rates: Kenya and Venezuela rank in the top five despite not finishing in the top ten by any other number.

However, a focus on P2P volumes may ignore the creation of regulated local exchanges as an indicator of cryptocurrency adoption and bias in favor of emerging economies that lack a robust financial sector and are likely to rank the United States below Kenya despite its outperformance. An African country on three out of four criteria.

Chainalysis describes Venezuela as a “perfect example” of the forces driving the adoption of cryptocurrencies in developing countries, and highlights the use of ordinary Venezuelans as a way to reduce economic instability:

Our data shows that Venezuelans are using cryptocurrency more when the nation’s paper currency loses value due to inflation, indicating that Venezuelans are turning to cryptocurrencies to preserve the savings they might lose.
The report contains several surprising findings: Vietnam ranked second in the value of both retail and all network transactions, despite early attempts by local authorities to fight the cryptocurrency.

No Western European country is included in the list of the top ten countries using the cryptocurrency, Chainalysis.

Source: CoinTelegraph