Find out more about the cryptogeography and countries where cryptocurrencies are the most popular nowadays.
Countries that Lead the ‘Crypto Storm’
The crypto industry started its history in 2009 with the launch of Bitcoin. Since then, digital currencies have rapidly integrated into the financial systems of the world.
The idea of having full control over your money was attractive. Hence, it urged people to take an interest in crypto and invest in different coins.
In 2021, there were already around 106 million cryptocurrency holders. The crypto market capitalization has reached over $1.7 trillion.
Such numbers are pushing governments around the world to stop ignoring crypto and take action. Some of them are working on accepting crypto as a legal currency, others are applying restrictions. El Salvador is the only country so far that has adopted BTC as a legal form of payment.
What is the overall cryptogeography and where are digital coins most popular? Read below.
Where Can Cryptocurrency Be Used?
Cryptocurrency has become widely used all over the world, and most countries at least partially legalized digital assets. Due to its decentralized and borderless nature, crypto can be used by any person with access to the internet.
As a rule, many countries refuse to adopt any crypto legislative documents, which makes operations with cryptocurrencies a grey sector of the economy. It is neither legalized nor banned in most countries in the world. Even so, some countries imply a full prohibition or serious restriction of cryptocurrency usage.
Below are a few examples.
In 2021, the government of Turkey has banned the usage of crypto assets to pay for goods or services. It happened after the investigation into possible fraud on exchange platforms. The government justified the ban of crypto with the risks of using digital currencies.
Due to the trade embargo and other sanctions applied to Iran, the government was looking for ways to counteract it. Consequently, crypto mining was legalized, but usage of crypto is strictly limited. Iranians can legally use crypto mining in Iran. Cheap electricity made the country one of the leaders of BTC mining. Only in 2020 local miners made around $1 billion by BTC mining. But because of illegal crypto mining, Iran started to experience power shortages. Consequently, Iranian authorities decided to ban mining until at least September 2022.
In 2014, the Bangladesh government fully banned the transactions with any digital currencies within its borders.
Despite the high popularity of crypto in Nigeria, the government of the country decided to stop the development of the industry. In 2021, the financial regulator of Nigeria banned work with digital assets for the financial institutions.
Bolivia is a country that totally forbids cryptocurrencies. Several people even have been arrested for the violation of the ban.
The favorite country for crypto miners decided to prohibit the usage and mining of crypto before launching a centrally regulated stablecoin. The prohibition was announced under the pretense of customer protection against decentralized assets.
Different actions towards a full prohibition of crypto was also adopted by such countries as Marocco, Algeria, Iraq, Qatar and Egypt.
Countries That Use Crypto the Most
While some countries choose to fight crypto, others try to regulate it or at least do not interfere. As a result, crypto is widely used and thriving under such jurisdictions. Below are the countries that have the most crypto fans.
Around 16 percent of the US population have invested some of their money into cryptocurrencies in 2021. US citizens hold one of the most considerable shares among traders on major crypto exchange platforms.
There are around 60 percent US wallets on Coinbase. Other big platforms such as Binance or Bittrex report about an American share of 25 percent.
At the same time, only 46 percent of US citizens use crypto for purchasing goods or services. More than half of them use it for investment purposes. Furthermore, 2,300 US businesses already accept payments in crypto.
Approximately 9.8 million people in Great Britain owned cryptocurrency in 2021. Over 100,000 of them actively trade on Coinbase every day. 60 percent of British cryptomarket belongs to Bitcoin.
People in the UK are more likely to use crypto as a long-term investment (58 percent), while the other 42 percent use it as a payment method.
Around 500 UK companies allow their customers to pay with crypto. Among them are pubs, pizzerias, online stores, and other small and big companies.
Almost 2 million Canadian owned cryptocurrencies at the end of 2021, which is around 5 percent of the population of the country. The most popular coins are bitcoin, ether, litecoin, and dash. There are more than 1,000 BTC ATMs in the big cities in Canada. Only in Toronto, you can find around 370 ATMs.
Furthermore, local businesses are more likely to accept crypto as a payment method. Only in Vancouver, there are around 100 crypto-friendly companies.
Crypto GEO Future
Although the cryptocurrency is widely used by developed countries, it is popular on a global level notwithstanding the legislation status.
Investing in Ethereum and other crypto might be soon legalized in the following countries:
Taking into account sanctions against Cuba, the population of the country is trying to compensate for the restrictions by using crypto. In particular, digital currencies allow sending and receiving money beyond Cuba’s borders. People are totally free to use crypto there, as the government officially recognizes them.
More than 12 percent of the Ukrainian population has invested in crypto. Until recently, crypto usage in Ukraine was not recognized by the government of the country, but it was not banned either.
However, in 2021 the first set of legislation was released. It still did not come into effect, but the main goal of the country is to become the most attractive jurisdiction for crypto companies.
After the announcement by El Salvador’s government regarding adopting bitcoin as legal tender in the country, neighboring Panama might do the same. Although only 2 percent of the population in Panama has ever invested in crypto, the country has already drafted legislation to legalize bitcoin as well.
To Sum Up
The popularity of cryptocurrencies around the world grows every day. Hence, many countries start to recognize decentralized digital assets in order to be able to regulate it.
Others, like El Salvador, already use crypto as a national currency. Even so, there are still a lot of unregulated jurisdictions or countries that have issued a total ban on crypto usage, such as Bangladesh or Bolivia. Still, a tendency towards the recognition of cryptocurrencies is visible.