A study conducted by the cryptocurrency exchange Gemini determined that approximately 41% of the surveyed individuals from Brazil and Indonesia own digital assets. The United States and the United Kingdom are far behind with respectively 20% and 18%.
Brazil and Indonesia: the Global Leaders
The US-based crypto platform Gemini questioned nearly 30,000 people across 20 countries to find out what chunk of the population has jumped into the digital asset universe. Per the results, Brazil and Indonesia are the undisputed leaders as 41% of the surveyed people from those nations admitted holding bitcoin or altcoins.
Gemini determined that nations which have experienced a significant economic crisis in recent months are much more inclined to purchase digital currencies as a hedge against inflation. 64% of the questioned Indonesians, for example, believe in that concept.
The main motive for those who have already jumped on the bandwagon is crypto’s long-term investment potential.
The numbers in leading economies like the USA and the UK are quite different. The crypto adoption rate there is respectively 20% and 18%. Moreover, only 16% of the American respondents and 15% of the European ones agreed that digital assets are an appropriate investment tool in times of surging inflation.
Subsequently, Gemini determined that almost half of all crypto holders in the USA, Latin America, and the Asia Pacific region have entered the market for the first time in 2021. Earlier this year, Huobi Group estimated that 7 in 10 have began investing last year.
What is the Crypto Environment in Brazil and Indonesia?
It is worth observing the digital asset ecosystem, the latest developments, and the government’s attitude towards the industry in the leading countries from the survey – Brazil and Indonesia.
The largest nation in South America seems to have a much friendlier stance than the Asian state. In November last year, the Brazilian politician Luizão Goulart proposed a bill to allow public and private sector workers to receive their salaries in bitcoin.
Earlier this year, the mayor of Rio de Janeiro – Eduardo Paes – presented his intentions to allocate 1% of the city’s Treasury in BTC. Last week, the megalopolis’ authorities announced that residents will be able to pay taxes in digital currencies as of 2023.
The Indonesian government is on the opposite corner. Several months ago, the National Ulema Council (MUI) proposed a ban on the use of crypto, citing Sharia law. Specifically, the organization declared the industry “haram” (forbidden). Shortly after, another Islamic entity – Tarjih Muhammadiyah – issued a fatwa against the employment of digital assets.
Indonesia’s top monetary watchdog – the Financial Services Authority (OJK) – is also against the sector. In January, it prohibited local firms from using, offering, or facilitating cryptocurrency services.