Ukraine and Russia become leaders in the number of cryptocurrency holders in 2021

In each of these countries, the share of citizens owning digital assets exceeds 10%

19.07.2022 - 07:30

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What’s new? Ukraine and Russia topped the ranking of countries with the highest percentage of citizens holding cryptocurrencies in 2021. In Ukraine, the share of the population using digital assets was 12,7%, while in Russia it was 11,9%. Such data is presented in the policy brief of the UN Conference on Trade and Development (UNCTAD).

The full version of the policy brief

Which other countries made the top? Venezuela is in third place with a figure of 10,3%. The list also included Singapore (9,4%), Kenya (8,5%), the United States (8,3%), India (7,3%), South Africa (7,1%), and Nigeria (6,3%). Rounding out the top 10 is Colombia with a figure of 6,1%.

UNCTAD experts believe that the high popularity of cryptocurrencies in developing countries is due to low transaction fees and high inflation of national currencies. Among the key risks is the emergence of illicit financial flows, as well as the possibility of replacing fiat currencies with cryptocurrencies, which would lead to financial instability.

Previously, UNCTAD recommended developing countries impose registration of bitcoin addresses and exchanges. It also advised imposing a tax on cryptocurrency transactions, banning financial institutions from storing digital assets, and offering crypto-related services to customers.

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