Top 10 Leading Countries in Digital Currency Adaptation

The first of its kind Global Crypto Adaptation Index launched in September 2020 assessed and ranked 154 countries on their level of adaptation and use of different digital currencies, in 12 months.The ranking methodology used median of subindex parameters of on-chain cryptocurrency value received, transferred, exchange trade volume (weighed by PPP per capita) and deposited (weighed by number of internet users). countries scoring zero in any of the four metrics scored zero for its overall index score, indicting low cryptocurrency market. Of 154 countries studied, 12 countries scored zero and ranked ‘among lowest’.

With 0.009 score, Ethiopia ranked 122nd. In the subindexes, Ethiopia better performed in on-chain value received. But deposit and trade exchange are far-flung. This indicates the demand for crypto currency is high but low supply, resulting in higher values.

Africa has the smallest cryptocurrency economy of any region, with just USD8 billion worth received and USD8.1 billion sent on-chain in the 12-month period studied. However, that relatively small amount is offering low-fee remittances and alternative saving in the region facing economic instability. Specially cryptocurrency is becoming viable saving alternative in countries such as Nigeria, Egypt, Algeria, Ethiopia, south Africa, and Ghana; which are suffering of currency devaluation and instability.

Yet, darknet markets and ransomware drive crypto crime also taking helm. With 1.4pct of its USD41 billion in total transaction volume sent to illicit entities, Eastern Europe is second only to Latin America with 1.6pct of its volume sent to illicit entities. Eastern Europe accounts for more than 23pct of funds received from ransomware addresses, indicating that Eastern Europe is home to the highest-earning ransomware network administrators and ransomware-as-a-service (RaaS) operators.EBR