Global Crypto Adoption Report 2023: A Defining Year for Global Acceptance of Cryptocurrencies
Crypto has become an incredibly popular asset, capturing the interest of individuals around the world. Coinpedia has compiled a comprehensive report that addresses the key questions surrounding the acceptance of crypto in 2023.
The report delves into the global adoption of crypto, focusing on the leading nations that have embraced cryptocurrency and digital finance. It also analyzes the various scenarios of crypto adoption among individuals, including new-comers, new countries, and demographic representation.
Coinpedia’s report covers significant events that have influenced crypto adoption among nations and provides insights into what 2024 may hold for crypto investors.
A Brief Overview
Coinpedia’s 2023 Global Crypto Adoption Report offers in-depth information on how the East and West are adapting to the digital financial revolution. The report highlights the challenges that nations must overcome to embrace crypto and sheds light on the overall market situation, adoption metrics, global patterns, and upcoming challenges in 2024.
Key Insights
The report reveals that India has surpassed 154 nations in grassroots crypto adoption, displaying remarkable resilience despite challenging regulatory conditions. It also notes that brands like Ferrari have started accepting crypto payments in 2023, and India has made a significant comeback from the previous year.
The top five countries in terms of crypto adoption are Nigeria, Vietnam, the US, Ukraine, and India.
Introduction
The Global Crypto Adoption Report aims to combine on-chain data with real-world information to identify the countries leading the way in grassroots crypto adoption. The report focuses on countries where everyday people are embracing crypto, rather than just looking at transaction volumes. It introduces the Global Crypto Adoption Index, which identifies countries where individuals are investing a significant portion of their wealth in cryptocurrency. The report highlights the top 20 nations with the highest level of crypto adoption in 2023.
Crypto Market Overview
Taking into account the overall crypto landscape, experts have made several deductions. The global market cap is currently $1.55 trillion in 2023, and recent developments in AI are expected to impact the growth and adoption of crypto worldwide. Revenue is projected to grow at an annual rate of 14.40% from 2023 to 2027, reaching a total of $64.9 billion. The average revenue per user in the cryptocurrency market is $56.2 in 2023.
The United States leads in terms of revenue, reaching $17,960.00 million in 2023. The number of crypto users is expected to reach 994.30 million by the end of 2027, with a user penetration rate of 12.51% by that time. In 2023, there are already around 420 million crypto users worldwide.
The report also provides data on global ownership of Bitcoin in 2023, showcasing figures for Bitcoin owners, daily BTC users, Bitcoin wallets, Bitcoin traders, and daily BTC transactions.
A Major Development in the Market
The year 2023 has seen unprecedented growth, technological innovation, increased regulatory clarity, and a surge in cryptocurrency acceptance worldwide. Both retail and institutional players have embraced crypto in 2023, setting the stage for a boom in mass adoption in 2024. Regulatory clarity in various jurisdictions worldwide is expected to attract more traditional investors to the market next year.
CBDCs (Central Bank Digital Currencies)
Central Bank Digital Currencies (CBDCs) have gained attention from banks worldwide, and several countries are expected to develop and implement their CBDCs in 2024. The report highlights the progress of CBDC exploration in different nations, including the Bank of Korea’s announcement to adopt CBDCs and the European Central Bank’s preparation for a digital Euro. It also mentions pilot programs and plans for CBDC development in countries like India, Japan, Brazil, and Nepal.
Global Patchwork of Regulations
The report emphasizes the diverse approaches that different countries have taken towards crypto regulations in 2023, reflecting the unique economic, social, and political landscapes of each region. While some countries have embraced crypto as a legitimate form of finance, others remain skeptical.
Driving Forces for Crypto Adoption in 2023
The report reveals that consumers are increasingly interested in crypto due to a desire for more control over their online identities and data. However, speculation remains a significant driving force behind crypto adoption as consumers gain more knowledge about the crypto world.
Crypto Adoption Scenario: 2023
Coinpedia’s report provides a comprehensive overview of the major events that shaped crypto adoption in 2023. It aims to highlight the yearly developments that have contributed to the acceptance of cryptocurrency worldwide. The report also examines the factors that have facilitated this adoption process and predicts massive profits for 2024, with a focus on the halving scenario.
Countries to Look at in 2023
The report highlights new crypto-friendly policies implemented in 2023, such as El Salvador’s adoption of Bitcoin as legal tender. It also identifies the country with the largest crypto ownership in 2023 as the UAE, followed by Vietnam and Saudi Arabia. Additionally, it provides a list of crypto-friendly countries in 2023, including Switzerland, Malta, Estonia, Singapore, Japan, Canada, South Korea, Portugal, Germany, and the Netherlands.
Crypto Adoption Rate in 2023
The report compares the crypto adoption rates across different countries from 2022 to 2023, revealing changes in adoption levels. It shows that countries in Africa, Asia, and South America were most likely to have crypto owners, such as Bitcoin, in 2023.
2023 International Summits and Crypto
The G20 Summit held in India in September 2023 had a significant impact on the crypto community, with leaders discussing the implementation of a reporting framework for crypto assets. The Crypto Asset Reporting Framework (CARF) aims to prevent tax evasion and ensure the legitimate use of crypto assets.
Crypto Demographics 2023
The report states that there were 420 million crypto owners worldwide in 2023, breaking down the demographics of crypto ownership by age, gender, income, and education level.
Brands Accepting Crypto in 2023
The report highlights brands like Ferrari and Ralph Lauren Miami store that started accepting crypto as payment in 2023, indicating a growing acceptance of digital currencies in mainstream businesses.
Institutional Adoption of Crypto in 2023
The report acknowledges the increasing adoption of crypto by institutional investors, citing examples such as BlackRock, Goldman Sachs, and Morgan Stanley. It also mentions Microstrategy’s significant Bitcoin purchases and Visa’s expansion of stablecoin capabilities.
Crypto 2023: Driving Forces vs. Setbacks
The report discusses the driving forces behind crypto adoption, such as hedging against inflation, remittances, gambling, gaming, speculation, and store of value. It also acknowledges the challenges faced in terms of lack of awareness, regulatory issues, taxation uncertainties, hacking, lack of trust, and irreversibility of transactions.
Outlook for Crypto Adoption 2024
Experts predict that Bitcoin may reach $100,000 by the end of 2024, and over 500 million people worldwide may own Bitcoin by that time. The approval of a US Spot Bitcoin ETF is expected to attract more institutional investors. There may also be a movement towards decentralized finance (DeFi), increased regulatory changes, and key advancements in the crypto market.
Final Thoughts
The crypto market has witnessed significant evolution in recent years, with 2023 being a pivotal year. Coinpedia’s report provides valuable insights into the adoption, trends, challenges, and outlook for crypto in 2024. It highlights the countries leading in crypto adoption, the institutional adoption of crypto, and the driving forces behind its acceptance. The report portrays a positive future for crypto adoption as regulatory conditions improve, and more individuals and institutions enter the market.