An extract from our upcoming 2022 Geography of Cryptocurrency Report can be found in this article.
Vietnamese consumers are acknowledged as the greatest cryptocurrency users for the second year in a row, registering the highest consumption of crypto-related tools, products, and services, compared to other nations.
According to Chainalysis’ 2022 Global Crypto Adoption Index, which is a yearly study that examines transactional data from more than 140 countries to identify which countries are the biggest consumers of cryptocurrency, such is the conclusion.
The index is dominated by emerging markets once again this year, with Vietnam and the Philippines leading the pack.
The usage of cryptocurrencies to send remittances to specific economies and their perceived value as an efficient hedge against inflation and political uncertainty may both contribute to the strong adoption in emerging markets. according to the report. Additionally, compared to other nations, these nations frequently use Bitcoin and stablecoins.
Reviewing the sub-ranking reveals that Vietnam is experiencing very high adoption of centralized cryptocurrency tools, decentralized finance (DeFi), and peer-to-peer (P2P) exchange; these results support the assertions made by other sources that Vietnamese consumers are becoming increasingly interested in cryptocurrencies.
According to Statista’s Global Consumer Survey, since 2019, Vietnam has continuously been among the top 10 cryptocurrency users in the world, with about two out of every ten residents of the nation holding or using cryptocurrencies. from 2019 to 2022.
According to Chainalysis’ projections, Vietnam registered US$112.6 billion in crypto purchasing and selling value between July 2021 and June 2022, placing the nation second in the Association of European Nations. In terms of cryptocurrency trade volume, Southeast Asia (ASEAN) is second only to Thailand ($135.9 billion).
Non-fungible tokens (NFTs) and on-chain games have also grown popular with Vietnamese customers, reaching 2.19 million users in 2021. According to this figure, Vietnam is the fifth-largest NFT user globally. lagging behind China (3.81 million), the United States (3.81 million), Brazil (4.99 million), Thailand (5.65 million), and (2.68 million).
The Philippines, which ranked top in the use of centralized crypto services like exchanges and DeFi tools, came in second place behind Vietnam in this year’s Global Crypto Adoption Index. . According to Finder’s Crypto Adoption dated September 2022, the Philippines has a 15% crypto penetration rate. Around 11.1 million people in the country possessed cryptocurrency, according to the study, which polled over 12,000 people.
The Bangko Sentral ng Pilipinas (BSP) data also showed that the cryptocurrency market is booming. Cryptocurrency trade volume increased 362% year over year (YoY) in the first half of 2021, reaching about 20 million. According to research, the value of the transactions was PHP105.93 billion ($1.8 billion), an increase of 71% from the previous year.
The Philippines’ rapid retail acceptance of cryptocurrencies coincides with the government’s own interest in investigating potential applications for blockchain technology and virtual currencies.
In an effort to implement the technology in fields like health care, financial support, and medical aid, the Department of Science and Technology started a blockchain training program for its researchers in May. emergency, the granting of passports and visas, the filing of trademark applications, and public records.
While this is going on, BSP is putting up a pilot study to examine the viability of using a wholesale central bank digital currency (CBDC) for high-value financial exchanges between particular financial institutions.
Vietnamese officials agree with the Philippines that granting a CBDC has advantages. The State Bank of Vietnam (SBV), the nation’s central bank, was tasked by the prime minister of Vietnam, Pham Minh Chinh, to research and begin work on a pilot project including a CBDC based on the blockchain. SBV apparently tried to work with Soramitsu and other organizations to perform market research, but no firm decision to launch a virtual currency has been taken as of yet.
Regulators are now working to create the legislative framework needed to address problems associated with the growing asset class as a result of the growth in cryptocurrency usage and trade in Vietnam.
According to SBV Governor Nguyen, new regulations are anticipated to be released soon to address issues like the usage of cryptocurrencies for money laundering and funding terrorism as well as effective crypto management. Earlier this month, Thi Hong participated in a discussion with the National Assembly.
