Emerging Markets Lead The World In Crypto Adoption Despite Bear Market | OilPrice.com

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Cryptocurrencies are seen as a safe haven amid macroeconomic and inflationary pressures.

- Sep 27, 2022, 12:00 PM CDTNFTs and gaming are encouraging new adopters, even in countries with trading bans.Despite global financial headwinds and significant declines in the value of cryptocurrencies this year, emerging markets are adopting the technology at a rapid pace.

Long touted as a hedge against inflation, cryptocurrencies as an asset classes have seen one of the largest declines since the second half of 2021, when inflation ramped up globally, prompting many banks and financial institutions to question this premise. Regionally, 50% of citizens in the Middle East and Africa are unbanked, while South and Central America average 38%, Eastern Europe 33% and Asia Pacific 24%. Meanwhile, 94% of citizens in Western and Central Europe are considered banked.

The Central African Republic adopted Bitcoin as legal tender in April, and the continent’s four largest economies – Egypt, Kenya, Nigeria and South Africa – also have the largest number of cryptocurrency holders in Africa. The country has, however, encouraged the use of non-fungible tokens that leverage blockchain technologies, so long as they are traded on regulated exchanges.

 

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