Since the first significant rise of Bitcoin in 2017, the cryptocurrency adoption rate has witnessed an unprecedented rise.
Investors, miners, digital nomads, and crypto enthusiasts are purchasing, holding, and using crypto daily - now more than ever!
But how did countries start to adapt to the new wave of blockchain and cryptocurrencies?
In this article, we will answer how crypto adoption started. Without any further ado, let's begin!
What Is Crypto Adoption and How did Countries start to Adapt to Cryptocurrencies?
The adoption began when leading nations started to understand blockchain technology's benefits. Fortunately, the fast-paced advancements in the crypto space mean that cryptocurrency adoption in multiple regions globally is on the rise.
Let's talk about some of the leading nations that adapted to the wave of cryptocurrencies and learn how it all started to come together.
Portugal
It's one of the leading nations where blockchain is used in public service, healthcare, and supply chain fields. Cryptocurrency adoption increased in Portugal when the Portuguese government introduced the Blockchain Panorama platform - a move to improve blockchain business.
This step caught the eye of many cryptocurrency enthusiasts because users in Portugal could now pay bills and taxes using BTC. Furthermore, startups like BitBase expanded the network of crypto ATMs, enabling more and more merchants to accept crypto payments.
In 2021, the Portuguese government also approved the creation of technological free zones to promote blockchain use.
Australia
Australia is leading the forefront when it comes to crypto adoption. The best part is that crypto exchanges are legal and regulated in Australia. Moreover, the network of crypto ATMs is rapidly expanding in Australia and has outgrown that of Asia.
In addition, cryptocurrencies are regulated in Australia by the Australian Securities and Investments Commission (ASIC). However, the government treats cryptocurrencies as investment assets instead of legal tender. Hence, digital purchases are subject to capital gain tax in Australia.
USA
It's a no-brainer. Cryptocurrency is widely accepted in the US, and the nation takes pride in having the most extensive network of crypto ATMs. Furthermore, the US is the major contributor to the BTC hash rate, which signifies that crypto adoption is increasing nationwide.
MENA
The MENA region is never behind when it comes to innovations. One of the early adopters in MENA was UAE.
In April 2018, UAE launched the Emirates blockchain strategy, a step toward becoming an intelligent economy. As a result, multiple merchants and private businesses use blockchain for business purposes. Another reason for high adoption in UAE is that investors enjoy a 0% tax on cryptocurrency gains.
Moreover, the Ras Al Khaimah (RAK) Emirates announced the creation of the first free economic zone focused on virtual assets in 2023. In addition, several large crypto companies, including Binance and Kraken, have obtained licenses to set up in the Gulf region.
Abu Dhabi is also launching Hub71 - a $2 billion fund to empower Web 3.0 startups and promote cryptocurrencies.
Turkey is undergoing a similar transformation. The opposition party, Nations Alliance, recently revealed its election doctrine to boost crypto adoption. Plus, there aren't any taxes on crypto in Turkey.
Morocco isn't behind as, well. The central bank (Al Maghrib) has drafted a regulation to protect crypto investors from trading risks. This step is expected to increase adoption in the region.
Malta
This small island started promoting cryptocurrencies as early as 2017. Malta became popularly known as 'blockchain island' after regulations were drafted in 2018 to oversee ICOs and digital assets.
It was also the first country to implement a blockchain-based IP register, property planning, and copyright systems. Surprisingly, the government also created a blockchain-based supply chain system to certify food production on Gozo Island.
That's not all!
The country added AI and blockchain to its commercial framework at the end of 2021 to boost crypto adoption. So, it's safe to say that Malta openly supports cryptocurrencies, and it's an excellent region for international companies to set up operations using blockchain.
Singapore
It's the hub for innovation. The government has created a regulatory framework and invests heavily in blockchain R&D. As a result, Singapore has become an excellent place to issue new ICOs - all thanks to favorable regulatory conditions.
Moreover, a Singaporean company, GeTs, launched Open Trade Blockchain (OTB) - an e-government product and a cross-border platform to make global trade secure and efficient.
What's more? Blockchain has also been adopted by Singapore's educational and public service sectors. The best part is that possessing digital assets in Singapore is legal.
Japan
Japan is perhaps one of the earliest adopters of cryptocurrencies. The Japanese were engaged in mining even when BTC had little value. The first crypto exchange, Mt. Gox, was established in Japan.
In 2017, Japan granted the status of legal tender to BTC. Since then, the country has been spending heavily on R&D to become a blockchain leader. Fukuoka, a Japanese city, has also partnered with a blockchain network, Astar, to create a web 3.0 hub - a platform that resembles Silicon Valley in the West.
The Financial Service Agency (FSA) regulates crypto in Japan and provides a framework for crypto as a payment service.
South Asia
South Asian countries are also joining the race to adapt to the wave of digital currencies. The Philippines and Vietnam have shown potential for mass crypto adoption. Crypto popularity in the Philippines is due to Axie Infinity – a play-to-earn game - where most users are from the said region.
Furthermore, Vietnam is starting to favor digital payment methods, including cryptocurrencies. Both nations consider cryptocurrencies a cheap and viable way to send/receive remittances. This remittance factor contributes to crypto adoption in most of South Asia, including Pakistan, Bangladesh, and India.
Similarly, Bhutan partnered with XRP to create its central bank digital currency. Moreover, Myanmar is also accepting Tether as a legal tender.
Even though China banned crypto in 2021, the nation is on-the-go to normalize the use of blockchain across a range of industries, including finance, agriculture, and legal. Last but not least, Hong Kong is also making giant strides to promote adoption. The exchange platform, Crypto.com, and the stablecoin, Tether, are headquartered in Hong Kong.
Crypto Adoption Across Industries
There are a few industries where the acceptance of cryptocurrency payments is high. Let's briefly look at each sector.
Luxury Segment
Web 3.0 is significantly impacting the luxury goods segment. The global market of this segment is projected at $1.4 billion in 2025, and millennials represent 50% of the customers.
To create a lucrative customer experience, luxury brands accept crypto as payment. Some of the leading brands include Gucci, Hublot, Louis Vuitton, Nike, Dior, and Equinox.
E-commerce
The online E-commerce industry is booming, and merchants don't leave a stone untouched when it comes to providing a superior online shopping experience.
According to a survey, 85% of online merchants favor enabling crypto payment. But why? Well, they view this step as crucial in improving conversions and ROI.
Gaming Industry
Blockchain-based games, NFTs, and in-app purchases all revolve around cryptocurrency payments. 1/4th of crypto owners used their holdings to make online gaming purchases in 2021.
Since new blockchain games are emerging now and then, the crypto adoption rate in the gaming sector is expected to boost.
Challenges to Crypto Adoption
Now you would agree that cryptocurrencies are slowly becoming a norm for plenty, if not all, individuals. There are also several reasons for the slow development, which are as follows:
Uncertain Regulatory Conditions
Most individuals are reluctant regarding the future of cryptocurrencies. A few nations have established laws and frameworks to regulate and support cryptocurrency development. Many countries, however, are silent or don't support blockchain development.
Due to this uncertain environment, people are reluctant to lock their hard-earned money in cryptocurrency.
Poor Understanding and Knowledge
Of course, the cryptocurrency lingo is alien and scary to the layperson. Most people can't understand how to deposit, trade, create accounts, and connect wallets on various crypto exchanges.
In addition to this, the rapid development of blockchain products confuses individuals about various Web 3.0 projects. As a result, the lack of awareness is one major factor affecting crypto adoption.
Liquidity Risk
Many investors are also concerned about cryptocurrency exchanges running out of funds. It's truly a nightmare for them. Hence, the loss of funds is another threat that affects crypto adoption.
The Role of PlasBit in Promoting Crypto Adoption
PlasBit is a regulated crypto exchange, and we aim to facilitate cryptocurrency adoption globally. We have developed products to store, transfer, and exchange cryptocurrencies easily.
We offer users wallets, debit cards, and transfer services. The best part is that we provide anonymous debit cards loaded with crypto. Let's talk about each of the products offered by PlasBit and see how it promotes crypto adoption globally.
Anonymous Cards
We at PlasBit have created revolutionary debit cards to fuel the crypto adoption rate. The unique part is that these cards are anonymous. All you need to input is your email when withdrawing funds.
You can use the card to easily withdraw, exchange, and pay for various transactions - all by staying under the radar. Another tremendous aspect is that the user's funds are stored offline and are insured.
Therefore, you don't need to worry about hacks and fraud hijacking your PlasBit account. Indeed, these unique cards greatly empower people to use cryptocurrency as quickly as they use fiat currency.
Wallet
We take pride in offering one of the safest wallets for storing multiple types of cryptocurrencies. The wallets have the highest security standards, and all the BTC deposits are held geographically across vaults.
Simply put, this product is a remarkable innovation that aims to bring digital currencies to the same standards as conventional finance and banking.
Transfer Service
There's no doubt that we at PlasBit are on a mission to normalize the use of crypto. Users can now use cryptocurrencies to initiate worldwide wire transfers with our transfer services. Plus, all your funds are subject to the highest security standards and scrutiny.
Parting Thoughts: Will Crypto Adoption Continue to Accelerate?
Even though there are challenges to crypto adoption, the rapid developments in the Web 3.0 world are addressing such issues.
On the other hand, the crypto adoption rate won’t be stopped soon. In light of the recent advancements, it’s safe to say that, with time, more and more people will be using cryptocurrency daily.
Plus, organizations like us at PlasBit ensure that people quickly adapt to this wave of digital innovation. For example, individuals can now securely use crypto swipe cards, conduct transactions, and withdraw digital coins from ATMs.
If you want to learn more about using debit cards and wallets for cryptocurrency, we at PlasBit are here to help you!
