UN Report Reveals Venezuela Ranks Third Among Countries With Most Crypto Adoption – Venezuela is third among the countries that have adopted cryptocurrencies the most, only behind Russia and Ukraine, according to a report from the United Nations Conference on Trade and Development. The report, which also discusses the reasons for this increase and crypto regulation, discovered that 10.3% of Venezuelans were cryptocurrency owners.
Ukraine topped the list with 12.7 percent of its residents holding some sort of cryptocurrency, while Russia came in second with 11.9 percent of the population doing so. This can be explained by the precarious economic conditions these countries are in and the fluctuations in their currency brought on by conflict.
The report demonstrates that developing countries have responded more favorably to the idea of cryptocurrencies. 15 of the top 20 countries with the greatest adoption rate are classified as developing countries by the United Nations.
The study seeks to explain the factors that have contributed to the rapid growth of cryptocurrency in these emerging countries. The report adds that the Covid-19 pandemic was a significant factor in the uptake of cryptocurrency.
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The second factor driving this increase has to do with how these countries’ citizens feel about cryptocurrency as a tool for protecting their savings. This explains why countries with a history of significant inflation, like Venezuela and Argentina, consistently rank well in studies on the adoption of cryptocurrencies.
Governments in the region have also reacted with regulations as a result of this increase. The legal foundation for cryptocurrencies in Venezuela is already very defined and declares bitcoin and cryptocurrency mining to be legal activities. Clear regulations for the usage of cryptocurrency are now being established in Russia and Ukraine as well.