Bangladesh Ranks 35th in Global Cryptocurrency Adoption Despite Legal Restrictions
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Loading... - Amyra Chishti
- 12 Nov 2024
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According to the 2024 Global Crypto Adoption Index released by blockchain analytics firm Chainalysis, Bangladesh has secured the 35th position among 151 countries in terms of cryptocurrency adoption. This ranking is notable given the country's legal restrictions on the use of cryptocurrencies, which are not officially recognized by the government.
Despite warnings from Bangladesh Bank, the central authority, urging citizens to refrain from engaging with digital currencies like Bitcoin and Ethereum since 2021, cryptocurrency usage remains significant in the country. The central bank's warnings highlighted concerns regarding financial stability and the potential for cryptocurrencies to be misused in illicit activities. However, the Chainalysis report indicates that Bangladeshi residents continue to adopt digital currencies at a notable rate, reflecting a strong interest in the crypto space.
The Chainalysis report categorizes countries based on their cryptocurrency usage across various services, including centralized exchanges and decentralized finance (DeFi) protocols. The top three positions in the ranking were claimed by India, Nigeria, and Indonesia, showcasing a surge in cryptocurrency adoption across Central, South Asia, and Oceania. Notably, Pakistan and Nepal also performed well, with Pakistan ranking ninth and Nepal at 71st.
Eric Jardine, head of research at Chainalysis, commented on the growing trend of cryptocurrency adoption in countries with strict regulations, including Bangladesh and India. He noted that, in some instances, regulatory restrictions have not dampened enthusiasm for digital assets. For example, India, despite its stringent crypto ban and penalties imposed on international exchanges like Binance and KuCoin, leads the world in grassroots cryptocurrency adoption.
The Chainalysis index further revealed that seven of the top 20 countries in the global adoption ranking are from the Central and South Asia and Oceania regions. This trend highlights a growing interest in cryptocurrencies in these areas, despite varying degrees of regulatory acceptance.
Bangladesh's position at 35th in the Global Crypto Adoption Index underscores a paradox where significant interest in cryptocurrencies persists despite legal restrictions. As the global landscape for digital currencies continues to evolve, it will be interesting to see how regulatory frameworks adapt and how adoption rates change in Bangladesh and similar markets.
