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Fastest-Growing Cryptocurrency Regions Are Displayed in This New Report

The Middle East and North Africa (MENA) can be the fastest-growing markets for cryptocurrencies despite being one of the smaller crypto markets in the 2022 Global Crypto Adoption Index, according to a report by the leading blockchain analysis company Chainalysis.

Three of the top thirty nations on the company’s 2022 index are located in MENA, according to the report: Turkey (12), Egypt (14), and Morocco (24).

From July 2021 to June 2022, consumers in the MENA region received $566 billion in cryptocurrencies, a 48% increase over the previous year.

This is due to “increasingly lenient crypto legislation” as well as use cases involving financial savings preservation and remittance monies.

The largest cryptocurrency market in the region is Turkey, where people made $192 billion between July 2021 and June 2022. Nonetheless, its year-over-year growth has been “far slower.”

In-depth analysis of these three nations by Chainalysis revealed that rapid currency devaluations in Turkey and Egypt coincided with fluctuating crypto prices, which in reality increased “the appeal of crypto for savings preservation.”

Its remittance market may be crucial when it comes to Egypt. According to the study, remittances make up about 8% of the country’s GDP, and the national bank has already started working on a project to build a crypto-based remittance hall between Egypt and the UAE, where many Egyptian nationals work.

It was found that the number of transactions in Egypt increased between July 2021 and June 2022 compared to the previous year.

Finally, Chainalysis found that “notable levels of grassroots adoption seem to be more related to the government’s increasingly liberal crypto posture than to any specific macroeconomic tailwinds” in relation to Morocco. It is well-known that the central bank of Morocco collaborated with the World Bank and the International Monetary Fund (IMF) early this year to develop cryptocurrency rules that “promote innovation and consumer protection.”

Afghanistan was a leader in the field of widespread cryptocurrency adoption at the time. However, since the Taliban took over in August of last year, the country has slipped down the list, ranking twentieth in Chainalysis’ estimate of 2021 crypto adoption. The business asserted,

“The crackdown by the Taliban has significantly cooled the nation’s cryptocurrency marketplaces. Crypto dealers currently have three choices: leave the country, stop business, or run the risk of being arrested. Despite being important business hubs in the MENA region, the Gulf Cooperation Council (GCC) member states of Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman do not frequently rank at the top of Chainalysis’ grassroots crypto adoption index because the index “weighs countries by purchasing power parity per capita, which favours poorer nations,” according to the report.

Despite this, the report stressed that the significance of these nations to the crypto ecosystem shouldn’t be understated. In all of MENA, Saudi Arabia has the third-largest cryptocurrency market.

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  • Fastest-Growing Cryptocurrency Regions Are Displayed in This New Report
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