2021 was an important year for cryptocurrencies, as some unexpected events took place to change the way countries approach cryptocurrency and digital currency. The latest cryptocurrency ranking now shows which countries are leading the world in cryptocurrency adoption.
Today, Ireland-based fintech startup Coincub released its cryptocurrency rankings guide for the fourth quarter of 2021. The rankings are based on societal criteria such as government policy, financial sector acceptance, tax laws, regulations and legal requirements.
The ranking also takes into account quantitative data such as crypto ownership, Bitcoin ATMs, and spending opportunities.
The rating criteria focus on positive government legislation and the willingness of major banks to provide custodial services. These two factors show that traditional institutions buy in-country crypto space.
Institutional acceptance, availability of exchanges and wallets, government regulations, DeFi acceptance, financial services, transparency, crypto spending, and banks’ crypto activity are also taken into account when issuing the arrangement.
In June 2021, El Salvador, which did not rank in the Coincub Global Crypto rankings in September 2021, made the decision to declare Bitcoin a form of legal tender.
This step into the unknown, which established economies are reluctant to take, has put the country in ninth place in the cryptocurrency ranking chart.
So far, no other country has declared any form of cryptocurrency as legal tender, and most of them classify it as a digital asset, good or property.
Looking at the latest ranking compared to that released just three months ago, movements in the situation illustrate the currency’s volatility and countries’ hesitation over the digital currency.
In this quarter’s ranking of the world’s most dynamic crypto country for 2021/Q4, Singapore moved to first place from third, and Australia moved up the rankings from sixth to second place.
With a booming cryptocurrency economy, positive legislation and the world’s second-highest percentage of cryptocurrency holders, Singapore ranks first. The country also has a clear government strategy and regulations in place to provide reassurance to timid investors in the crypto space.
At number three on the list, the United States holds 1,821 bitcoin nodes, 25,956 crypto ATMs, and has the only crypto exchange listed on the stock exchange (Coinbase). The United States lost its first place due to uncertain currency legislation.
About 8% of the world’s cryptocurrency owners live in the United States, led by only Singapore and El Salvador.
China has issued a ban on cryptocurrency trading and transactions, officially ending its participation in the cryptocurrency economy and relinquishing its position as the world’s most prolific bitcoin mining country.
China now ranks last on the list, closely followed by Russia, which has banned the use of cryptocurrencies to purchase goods and services.
“Events are moving at breakneck speed in the crypto-economy,” said Sergio Hamsa, CEO of Coincub. “In the past few months alone, bitcoin has recorded new price hikes, leading to renewed demand worldwide; El Salvador has announced bitcoin as legal tender. , China is completely banned.”
Coincub anticipates that there are quite a few countries to watch: Sweden, which appears to be a cashless society – piloting the CBDC e-Krona digital cash system.
Also, Japan could plan a possible tax cut on cryptocurrency gains. This is an interesting shift in attitude last year when the Japanese finance minister rejected a tax cut on cryptocurrencies.
Other countries to watch include Denmark at 22nd and India at 25th in the ranking. However, this week, other countries may focus on their views on digital currency adoption after the Kleiman V Wright ruling, and the 2022 arrangement could look very different.