Kenya has dropped two positions in global cryptocurrency adoption in 2023, the latest Chainanalysis Global Crypto Adoption Index shows.
Despite the drop, Kenya remains among the top African countries rapidly adopting cryptocurrency. According to the report, Kenya was ranked 21st worldwide, down from 19th position in 2022.
Nigeria topped the list in Africa and was ranked 2nd globally, up from 11th place in the previous year.
Morocco was ranked 2nd in Africa and 20th globally.
Globally, the top 10 countries in cryptocurrency adoption were; India was ranked first, displacing Vietnam, which had held the top position in the previous edition.
Nigeria (2), Vietnam (3), the US (4), Ukraine (5), the Philippines (6), Indonesia (7), Pakistan (8), Brazil (9), and Thailand (10) completed the set of the top 10.
The report primarily focused on countries where the general population embraced cryptocurrency.
Factors considered for this ranking included a nation's utilisation of various cryptocurrency services and its population size.
Additionally, the report assessed the total cryptocurrency activity that occurred on centralized crypto exchanges, with the data being adjusted based on purchasing power parity (PPP) per capita.
The report also analysed the peer-to-peer (P2P) exchange trade volume, shedding light on countries where many residents dedicated a larger share of their overall wealth to Peer to Peer cryptocurrency transactions.
Nevertheless, the report also disclosed that global grassroots cryptocurrency adoption was less robust in comparison to previous years.
Notably, Lower Middle Income (LMI) countries exhibited notable progress in cryptocurrency adoption when compared with High Income (HI) countries.
The report observed that LMI nations are experiencing growth in their industries and populations, making them noteworthy participants in the evolving cryptocurrency landscape.
"We could see a combination of bottom-up and top-down cryptocurrency adoption soon if these trends hold, as digital assets fulfill the unique needs of individuals in both segments," read part of the report.
Cryptocurrency in Kenya
In Kenya, cryptocurrency has encountered challenges, with regulators expressing concerns over the possibility of the technology being used for money laundering and other illicit activities.
The most recent controversy in the crypto sphere revolved around Worlcoin. The company's activities in the country were suspended after various stakeholders raised a red flag over its data mining activities.
At the time, the company was scanning Kenyans' irises in exchange for tokens.
Currently, a Parliamentary Committee is actively investigating the company's activities. The committee is expected to publish its report in due course.
