Crypto report: new records in developing countries in Q2 2020

According to a recent crypto report, during the second quarter of this year, Q2 2020, there were some new records for mass adoption in certain emerging countries. 

The study was carried out by the Blockchain Onfo project and reveals that in the CIS countries, i.e. Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine and Uzbekistan, in one month the record level of cryptocurrency distribution among new users was reached. 

In particular, on average each individual user active in the crypto sector within the CIS countries would have attracted 62 new users who subsequently created their own wallets. 

This data seems to reveal that there is currently an exponential growth of crypto users in these countries. 

Other areas where this growth rate is high are Indonesia, 58, Brazil, 56, and China, 53. In the United States, this figure falls to 17, in the United Kingdom to 8, and in Germany to 6. 

In other words, Onfo’s research reveals that the current level of cryptocurrency diffusion is higher in developing countries than in developed countries. 

A previous CoinMarketCap study on Q1 in 2020 already found that India, Pakistan, Colombia, Canada and Nigeria were among the countries with the highest growth of crypto users, confirming that the growth trend in emerging countries has probably been going on since the beginning of the year. 

This trend is further confirmed by the net growth in trading volumes in various African countries, particularly in conjunction with the various lockdowns. 

Furthermore, in the West, it has also been confirmed that the lockdown has generated an increase in trading volumes on crypto exchanges, therefore the phenomenon is global, although more marked in several emerging countries. 

However, it is not only the lockdown that is the reason for this growth. One of the key points, particularly in emerging countries, is the weakness of local currencies, which is driving more and more people to consider keeping some of their savings in bitcoin, for example. 

In fact, this growth would be particularly visible in developing countries due to the fact that people’s confidence in the national currency is low, with the exchange rate volatility in US dollars sometimes not very different from that of bitcoin. 

In addition, the attitude of states towards cryptocurrencies seems to be slowly becoming less sceptical, and this is helping to eliminate certain limitations or concerns on the part of citizens themselves. 

In addition, according to another report published by Arcane Research and Luno, some African countries such as Uganda, Nigeria, South Africa, Ghana and Kenya would even be among the top 10 countries in the world for the number of Bitcoin and cryptocurrency searches in 2020. 

This confirms that in some countries there is a particularly pronounced interest in these new assets, although they are probably seen more as investments than alternative transactional currencies. 

The current trend seems quite clear, although it is not yet known how long it will last.