Contrary to what one might think, China, despite the ban, surpasses El Salvador in the percentage of citizens who own cryptocurrencies.
The data from the report shows that, as of today, cryptocurrencies are legal in 119 countries and four British overseas territories. The majority of these countries (64.7%) are emerging or developing economies in Asia and Africa.
However, among the 119 countries that have legalized cryptocurrencies, 20 have imposed banking bans that restrict financial institutions in their dealings with cryptocurrency exchanges or their users. Additionally, only 62 out of the 119 countries have comprehensive regulations. This number has increased by 53.2% since 2018 when only 33 jurisdictions had robust regulatory frameworks for cryptocurrencies.
Currently, only one country, El Salvador, has decided to adopt Bitcoin as legal tender.
Bitcoin as legal tender: the cases of El Salvador and the Central African Republic (CAR)
On September 7, 2021, El Salvador made history by declaring Bitcoin as legal tender through the renowned Bitcoin Law. Despite this move, the adoption of Bitcoin in El Salvador remains relatively low at the moment. According to a cryptocurrency ownership study conducted by Triple-A, only 1.72% of the country’s population owns cryptocurrencies.
In April 2022, the Central African Republic (CAR) became the first African country and the second globally to adopt Bitcoin as legal tender. However, the experiment was short-lived. In March 2023, the government revoked the decision made a year earlier.
Adoption on the rise despite bans
Despite the cryptocurrency bans, Nigeria, Morocco, and China rank among the top 30 countries in Chainalysis’ 2023 Global Crypto Adoption Index. It is reported that in China, approximately 4.08% of its citizens are estimated to own cryptocurrencies. This figure starkly contrasts with the low adoption rate in El Salvador, despite government support.
