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Cryptocurrency adoption around the world significantly increased in 2021

In 2021, cryptocurrency adoption around the world has significantly increased. The global trend is marching towards regulating digital currency.

The 2021 adoption rate of cryptocurrency has significantly increased around the world. The Global Crypto Adoption Index displays the 880% jump and how several emerging countries, such as Vietnam, India, and Pakistan, have dominated the race for the second consecutive year. 

Only a few countries banned trading platforms and prohibited cryptocurrencies, such as China and Morocco, but the global trend is marching towards regulating the digital currency. 

The launch of the first-ever Bitcoin exchange-traded fund (ETF) has made history, as it obtained authorization to begin trading on United States exchanges. Stable coins, which are cryptocurrencies pegged to the dollar, for example, are making their debut!

In 2021, cryptocurrency adoption around the world has significantly increased. The global trend is marching towards regulating digital currency.
The Chainalysis 2021 Global Crypto Adoption Index // Source: CNBC

How do Countries regulate –or not- Cryptocurrency?

While few countries are still rejecting digital currencies and linking Bitcoin, Ethereum, and other cryptocurrencies to illicit activities because of their volatility and decentralized nature, others have already enacted some regulatory oversight. 

Surprisingly, El Salvador is the only country so far to allow Bitcoin adoption officially and grant it legal tender status.

The United States and its official agencies have said yes to Bitcoin while trying to guarantee its legitimacy and reduce –if not prevent- its use for illegal transactions; companies have joined and started to accept payments in Bitcoin, such as Microsoft and Subway.

Read More:  The American University of Paraguay will accept payments in Bitcoin and Ethereum

On the other hand, Canada is considered Bitcoin-friendly, as the Canada Revenue Agency (CRA) sees it as a commodity.

Australia considers cryptocurrency an asset for capital gains tax purposes. In the United Kingdom, businesses handling crypto-asset-related activities need to register with the UK’s Financial Conduct Authority, and businesses operating in cryptocurrency are eligible for the ‘Authorized Payment Institutions’ license.

Back in 2015, the European Court of Justice (ECJ) exempted buying and selling digital currencies from value-added tax (VAT) in all European Union (EU) member states, as it’s considered a supply of services.

Some EU countries, like Finland, have classified Bitcoin as a commodity and not as a currency, which means it’s treated as a financial service. Cyprus doesn’t control Bitcoin, nor does it regulate it either.

The “No Bitcoin” countries have either banned digital currency or tried to make trading and using it difficult by cutting off support from the financial institutions. In addition to China, any type of Bitcoin use is illegal in several other countries like Russia, Colombia, and Bolivia.

ETFs and the new possible stable coins that are starting to see the light

Institutional and individual investors cherish ETFs as investment vehicles; they are cheaper and better than mutual funds, and they offer low-cost trading and arbitrage options for investors.

Read More:  Bitcoin Miners Sets New Daily Revenue Record

In 2021, cryptocurrency adoption around the world has significantly increased. The global trend is marching towards regulating digital currency.

As mentioned before, the launch of the first ETF authorized in the US resulted from the efforts of Cryptocurrency and Blockchain advocates fighting for equitable access.

At the same time, it triggered an increase in the price of Bitcoin price. Globally, Bitcoin ETFs already exist in several countries like Canada and Brazil. ETFs are traded on traditional market exchanges, which intrigued many countries; for instance, Japan has a yen currency-related EFT. 

Unlike cryptocurrencies like Bitcoin and Ethereum, EFTs approval and stable coins recent regulatory frameworks proved their ability to play a significant role in the future of global finance, possibly becoming the backbone for financial services. 

The Central Bank of China was among the first to focus on CBDC’s development back in 2014. The Bahamas was the first jurisdiction to fully launch its retail CBDC, Sand Dollar, in October 2020. 

Only recently, Nigeria has announced the launch of the Nigerian Central Bank Digital Currency (CBDC), its stable coin ‘eNaira.’ Similarly, Sweden proposed its e-krona, the Eastern Caribbean Currency Union (ECCU) initiated DXCD.


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Disclaimer:

The information expressed in this article is solely those of the author and do not necessarily reflect the vies of CryptoDeFinance.  Each and every investment and trading move involves high risk. You should always conduct your own research when making a decision in crypto investment.
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Bruno Marques

Hi! I am the CEO/Founder of Crypto DeFinance, and I am an Enthusiast crypto investor. I started this project so we can provide you with carefully curated news. If you like us and our news, share the posts and comment. Your visit and interaction is very important to us.
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