How Cryptocurrency Gains Popularity Where Traditional Finance Struggles
A recent report by Bybit shows that people are using cryptocurrencies more and more, especially in places where regular financial systems do not work well. Countries like Ukraine, Nigeria, and Vietnam are leading the way in adopting crypto tools. For many people in these countries, cryptocurrencies have become a necessary part of everyday life.
Cryptocurrency Growing in Countries Needing Stability
The research looked at how crypto is being used in four areas: how many people use it (user penetration), how much of it is used for transactions, whether institutions are ready to support it (institutional readiness), and how well people understand it (cultural penetration). Countries like Singapore and the United States ranked high because they are doing well in all four areas. However, the most interesting growth is happening among countries where regular financial systems fall short, forcing people to turn to crypto for help.
Vietnam: Vietnam ranks ninth globally for crypto adoption and has a high score in user penetration (0.68) and transactional use (0.81). Around 20% of the population owns digital assets. Many people use cryptocurrencies for money transfers to family in other countries (remittances), protecting their money from losing value over time (inflation protection), and long-term savings. Vietnam is also becoming a hub for new technologies like decentralized physical networks (DePIN), where people earn rewards for sharing data or services.
Ukraine: Ukraine is listed as the 13th-most active country for using crypto. For Ukraine, cryptocurrencies have become essential during the ongoing war. In 2022 alone, over $6.9 billion in stablecoins (cryptocurrencies with stable value) were used in its $190-billion economy, the highest usage ratio worldwide. People use crypto for sending money across borders quickly and for storing money safely when banks or fiat currency systems are unstable.
Nigeria: Nigeria comes in 19th place. Its high score (0.83) for transactional use shows how families and businesses are turning to crypto for daily needs. These include shielding money from inflation, working around limits set by banks, and using digital tools for savings. A special type of cryptocurrency called cNGN, which is tied 1-to-1 with the Nigerian Naira, has also contributed to Nigeria’s growing interest in crypto. If cNGN expands beyond testing stages, Nigeria could become a leader among emerging economies using locally backed stablecoins alongside dollar-based ones.
Stablecoins Becoming the Most Popular Crypto Tool
Bybit’s report also reveals that stablecoins are the most widely used cryptocurrency worldwide. People use stablecoins for two main reasons. Some use them for things like paying bills or protecting their savings. Others use them as a way to start investing in cryptocurrencies or to access other finance tools offered by the blockchain.
Different situations explain their popularity. In Ukraine, stablecoins are seen as safe assets during times of economic and political problems. In Nigeria, people use stablecoins to avoid bank restrictions and problems like not having enough physical money available. In places like Hong Kong, stablecoins help move money in and out of trading systems, particularly where large amounts of money are involved. Globally, stablecoins also allow people to participate in decentralized finance (DeFi), trade cryptocurrency on exchanges, or buy tokenized assets.
Trends Shaping Stablecoin Growth
Three major trends are improving stablecoin use worldwide:
- Regulations: Rules about how stablecoins are backed and managed are becoming clearer in regions like the United States, Hong Kong, and the European Union.
- Banking Integration: Big financial institutions are beginning to include stablecoins in their usual payment systems.
- Local Stablecoins: Interest is growing for stablecoins tied to local currencies, including the Naira (cNGN), Euro, and Yen.
These changes could make stablecoins even more useful and trusted both in less-developed and advanced countries. As traditional financial systems try to catch up, cryptocurrencies like stablecoins are helping people by filling gaps in access and stability.