We have a people problem in web3. Unfortunately, despite the promise of decentralization and data ownership, platforms still aren’t talking to each other very well. As a result, ingrained issues like identity management, data sovereignty, and privacy continue to trouble our nascent sector.
A unified framework is, therefore, key to unlocking web3’s true potential—one that bridges the data divide and provides decentralized identity with strong privacy protections. This approach proposes a win-win for both sides of the stakeholder equation. Users benefit from cross-chain identity, data monetization, and a unified sense of self. Businesses, meanwhile, gain access to rich and verified user data while maintaining privacy and regulatory compliance. Better yet, this identity-first path to decentralization enables other new capabilities like on-chain reputation systems, chain-agnostic logins, and AI data utilization.
One thing’s becoming increasingly clear in the early days of web3—we must get identity right to get decentralized ecosystems right. Let’s explore how we can best connect people and platforms in this brave new world of the internet.
A win-win for users and businesses
Take a closer look and you’ll notice fragmented identities and disconnected data sovereignty hindering interoperability in both the internet new and old, leaving users with scattered information across the digital ether. This lack of integration limits trust-building and creates inefficiencies in industries—from advertising to AI—where cohesive data is essential.
These issues are all too familiar. Web2 social media giants and search conglomerates centralize identities but fail to connect them across platforms. The result? Siloed, static profiles owned by platforms and not people. Web3 promises a solution: decentralized, interoperable identities owned by individuals. However, putting this into practice is proving challenging.
While web3 improves upon its predecessor, true interoperability and seamless identity management remain elusive. Emerging protocols, however, are tackling this head-on. Projects like LayerZero, which aims for omnichain interoperability, and Gitcoin Passport, which focuses on open-source identity verification, are just two projects paving the way.
As a result, the identity and data layer is becoming a foundational piece of the web3 stack, and protocols and platforms can better offer digital identity management, on-chain reputation building, and data sovereignty.
As mentioned, this new reality benefits both users and businesses. Users can better connect with their online identities by owning, managing, and monetizing their personal data. At the same time, they can interact more safely and privately with dApps. CARV ID, backed by ERC-7231, exemplifies this by allowing web3 gamers to aggregate and manage on-chain wallets and off-chain accounts in one place.
For businesses, identity and data layers provide access to verified and (most importantly) consenting user data, which improves targeting, decision-making, and remarketing.
Better data, better results
The benefits don’t stop there. Unified identity supports a range of applications that improve the experience for individuals and the ecosystem. On-chain reputation systems, for example, allow users to build and maintain credibility across various web platforms, while chain-agnostic logins enable games and applications to provide data access regardless of where they live. Moreover, truly interoperable decentralized identities facilitate secure account recovery—a crucial advancement for blockchain-based wallets that addresses a long-standing pain point.
Identity and data solutions also unlock other new possibilities. Privacy-preserving advertising becomes feasible when users can opt-in and choose to monetize their information on their terms. And, as AI becomes more prevalent and data-hungry, decentralized identities enable model training that provides personalized experiences while still protecting privacy.
Ultimately, better data gives better results. This identity-first path to decentralization encourages consistency across platforms and creates a more intuitive and empowering online experience for all.
Identity and the user-owned internet
Today, there’s no difference between identity and digital identity. Working, socializing, gaming, and evermore facets of modern life increasingly happen online. Therefore, who we are and how we express ourselves should be interconnected across web3. Likewise, our online contributions—especially when used by companies for data ingestion and private profit—should be rewarded.
In its annual web3 survey, Consensus found that 79% of respondents want more control over their identity on the internet. At the same time, 38% of respondents globally believe they are adequately compensated for the value and creativity they add to the Internet.
These two ideas—identity control and fair compensation—are intrinsically linked. When people gain true ownership of their identity and can decide for themselves how to share or monetize their data, they’ll naturally be more fairly compensated for their digital contributions. This alignment is core to creating a user-owned internet that values individuals over corporations.
It’s simple: Future-forward protocols and platforms put people first. If we can connect people with platforms that prioritize privacy, scalability, and interoperability, we have a much better shot at shifting the digital status quo. Whether you’re a user, developer, or business leader, the time to engage with and shape this future is now. Let’s seize it and build an internet that is truly for people, by people.
The fact that psychedelic use is skyrocketing in the age of Bitcoin (BTC) is no coincidence. It is indicative of the fact that the world sits on the precipice of a new Renaissance and Enlightenment.
The world has finally discovered sound money in the form of Bitcoin and is using psychedelics more than ever before, which could transform the way we live in fundamental ways. For instance, as Bitcoin allows people a more leisurely lifestyle than their fiat ones, they will begin to explore what builds civilizations, including psychedelics. New ideas will flourish widely.
The effects on the world of Bitcoin and sound money
When a monetary unit called the aureus stabilized Rome from the 1st century BC to the 4th century AD, it was made of gold. All sorts of innovation followed, including using the arch, changing construction forevermore, etc. Once the government took the money system off the gold standard and debased the currency by decreasing the amount of gold being used, the empire began to fade.
Bitcoin can be the basis of the new monetary system. Instead of all these central banks printing a never-ending supply of fiat currency and then first giving it to their buddies at the big banks, the world has an objective supply of truth with a limited supply of 21 million open and accessible to everyone on planet Earth.
According to Gresham’s Law, which says the capital flows towards the better money, all of the world’s currency markets will move into Bitcoin. That is because Bitcoin is better than fiat currencies.
People flourish in sound money systems. It provides a fair playing field. The unit of account is not depreciating due to government manipulation. A sound money increases trade, savings, and prosperity. Individuals plan for the future rather than dread the coming bill cycles. Architectural, literary, art, science, and engineering achievements follow.
Additionally, sound money helps family and communities grow stronger, as the individual members can spend more time together, and are able to pursue the arts, sciences, engineering, and literature or whatever pursuits they may love. It underpins the stability needed so people can experiment in all sorts of ways.
On a Bitcoin standard, psychedelics help build future civilization
Psychedelics have been studied, and scientists believe they could have benefits for PTSD, anxiety, and more. People in business, too, apparently feel their positive effects. Silicon Valley founders praise the micro-dosing of LSD.
According to research, psilocybin, found in mushrooms, helped us develop and create our socio-cognitive world. Psilocybin, for instance, might have helped social bonding mechanisms like laughter, music, storytelling, and religion. Psilocybin might have created a “systematic bias on the selective environment that favored selection for prosociality in our lineage.”
Well-known researchers such as Terence McKenna underscore the importance of psychedelics in the evolution of mankind. “Psychedelics are illegal not because a loving government is concerned that you may jump out of a third-story window,” said Terence McKenna back in 1987.
“Psychedelics are illegal because they dissolve opinion structures and culturally laid down models of behavior and information processing. They open you up to the possibility that everything you know is wrong.”
The historical record backs this up. Just this past March, archeological excavations hint that Roman subjects at the northern reaches of the ancient empire consumed a hallucinogenic and poisonous plant named black henbane. Greek philosopher Plutarch described the effects as “not so properly called drunkenness” but more like “alienation of mind or madness.”
In addition, strands of hair from 3,000 years ago show the first direct evidence of drug use in Bronze Age Europe, according to a new paper published in the journal Scientific Reports. The hair, from a cave on the Spanish island in the Mediterranean called Menorca, has psychoactive alkaloids in it, which are found in some plants and create altered states.
Psychedelics played a considerable role in the development of human civilization and opened up new avenues of knowledge and understanding. They are already playing an increasingly large role in use cases, including spiritual, medicinal, and cultural purposes.
Bitcoin psychedelics and the new world
In the coming years and decades, both use of Bitcoin and hallucinogen use will increase. Bitcoin will allow people to work and store their time-energy in a digital asset with relatively stable value (Bitcoin velocity declines over time), and begin to explore the beauty in the world.
No more will we chase more work hours in the face of debasing fiat currencies and toil under palpable anxiety and unrest. The sound money system of today—brought to the world by Bitcoin—will allow people to experiment with psychedelics, creating a self-fulfilling prophecy of love and freedom.
Stablecoins are becoming a key solution for businesses looking to simplify and enhance payment processes. In Singapore alone, the stablecoin payment value reached $1 billion a few weeks ago. This is because now stablecoins are seen as a better alternative to traditional fiat payments and volatile cryptocurrencies. They have already become a mainstream digital tool for everyday use—from payments to shopping—and the e-commerce space is no exception.
But how exactly will they transform the e-commerce industry? Let’s break it down.
The current state of crypto payments in e-commerce
Cryptocurrency payments are gaining momentum all over the world. Recent studies show that 64% of consumers are interested in using cryptocurrencies and stablecoins as payment options. Looking at $4.2 billion in crypto payments processed via Visa crypto-backed cards in the first fiscal quarter of 2023, this becomes even more evident.
Among younger generations, the adoption rate is even higher: 40% of people aged 18-35 plan to use cryptocurrency, and 10% intend to use it regularly. Additionally, 31% of them expect to make consistent crypto payments in the next 12 months. On the business side, around 74% of retailers say they plan to start accepting crypto payments in the next two years.
Countries like the US, Canada, Australia, the EU, Israel, and the Central African Republic are now leading the way; however, new players like China and Russia have already started exploring unified crypto regulations through the BRICS alliance.
However, despite the progress and big indicators, the adoption is still uneven. However, it is clear that their widespread use is inevitable, mainly because of stablecoins such as Tether (USDT) and USD Coin (USDC).
Stablecoins: A game-changer for e-commerce payments
Stablecoins can easily become the most convenient payment method. Why? Speaking briefly and clearly about the advantages of stablecoins, I can highlight that they offer:
faster and more secure payment option;
simplified and stable entry point into digital payments;
eliminated conversion and exchange rate fluctuations.
Sounds great, right? The last advantage alone could drive significant crypto adoption among businesses operating in multiple markets.
Also, let’s put ourselves in the shoes of the e-commerce business owner for a second. In e-commerce, payments need to go somewhere. Imagine you are processing a lot of orders, and the payments keep going to your registered fiat account. Wouldn’t it be much more convenient if they were sent directly to your crypto wallet? Not only is it a straight transaction, but it also gives more control over the funds, streamlining the whole process.
To be more precise
Since stablecoins are tied to fiat currencies like the US dollar or Euro, they are less volatile compared to other forms of cryptocurrency and, as their term suggests, more stable. This is, of course, a huge advantage and a crucial factor for businesses. The lack of volatility allows them to lock in profits without the risk of sudden value fluctuations, so they can rely on stablecoins as a payment option.
Also, as now stablecoins like USDT and USDC have expanded beyond just major blockchains like Ethereum, they are available on faster, more cost-effective ones such as Polygon, Solana, Avalanche, Optimism, and Algorand.
Each blockchain comes with its own set of benefits—Polygon, for example, completes transactions in 2.1 seconds per block with an average transaction cost of just $0.015. At the same time, Solana’s average transaction fees are as low as 0.000014 Solana (SOL), or $0.00189, which makes it nearly 900 times cheaper than Ethereum.
This expansion into various blockchain networks is making stablecoins more accessible and practical for a broader range of businesses. For e-commerce, stablecoins eliminate many of the complications associated with traditional payments, such as chargebacks, delays, and high transaction fees.
Most importantly, cross-border payments—a major challenge for e-commerce retailers—can be significantly simplified using stablecoins. Since stablecoins are not subject to the same conversion and exchange rate fluctuations as fiat currencies, they offer a more seamless way to handle international transactions.
In short, stablecoins open the door to a global customer base without the hassles of traditional payment systems.
The future of stablecoin adoption in e-commerce
The regulatory framework has been and is one of the biggest challenges in crypto adoption. However, as the regulations continue to evolve, more regions are adapting cryptocurrencies to fit their business needs. Stablecoins, in particular, are well-positioned to take a leading role in this transformation. What we are witnessing is the gradual normalization of cryptocurrencies—Singapore, as I mentioned in the beginning, is a great example of it.
Digital assets are no longer viewed as niche or speculative but as integral to the future of financial settlements.
We are already witnessing the emergence of new stablecoins; however, in the near future, we can expect them to possibly be tied to assets other than fiat currencies. Hence, the further expansion of the stablecoin ecosystem across more blockchain networks and broader use of these currencies by businesses around the world is expected.
Stablecoins are no longer a distant possibility—they are here, and their potential is unlimited. They provide businesses with a solution to many of the challenges faced in e-commerce by offering a stable, secure, and cost-effective alternative to traditional fiat payments and volatile cryptocurrencies. Faster transactions, lower fees, and increased accessibility—all these make stablecoins a no-brainer way to improve payments for not only e-commerce but all businesses and bring new retailers to crypto.
It is only a matter of time before stablecoin payments become a mainstream option for e-commerce. The future is definitely digital, and stablecoins are leading the way.
When Vitalik Buterin, co-founder of Ethereum (ETH), announced the completion of the long-awaited Merge in September 2022, efficiency was the name of the game for blockchain innovation. In recent years, scalability has overtaken efficiency as the most pressing issue among the ‘big five’ challenges currently facing web3.
Prominent layer-1 chains are now giving way to a wave of emerging layer-2 solutions, which promise to propel the blockchain ecosystem to new heights. Dissimilar from the consolidated efforts that drove the Merge, though, this latest stage of blockchain development—coined “The Surge” in the Ethereum space—has given rise to a suite of issues. A new scalability paradigm, spearheaded by a constantly expanding galaxy of L2s, has led to a fragmented blockchain ecosystem characterized by multiple chains, each with its own rules, tokens, and transaction fees.
For some, participating in capitalism means believing that competition breeds success. But when it comes to blockchains, more isn’t necessarily better. Just as the tech shortcomings of the early internet made it challenging for newcomers to navigate websites, the complexity of managing multiple blockchain layers presents significant challenges for users.
If we are to steward web3 to mass adoption, the time has come to ask: how many layers are too many?
Challenges of a fragmented blockchain ecosystem
As we stack more layers onto our proverbial blockchain cake, challenges for both users and developers continue to arise in the form of hampered usability and stifled innovation. Although the Wild West of L2s feels like a net positive, as more complexities are piled on top of user experience, we risk our blockchain cake becoming nearly impossible to slice through.
Onboarding into web3 can be a daunting task in and of itself, so juggling various wallets, tokens, and fee schedules across chains to perform simple tasks leads to subpar or even arduous user experience. For many, a fragmented ecosystem makes the barrier to entry that much higher.
And the struggle faced by developers is quite similar. The complexity of working across multiple layers can mean slower build times and increased development costs. The lack of interoperability between an always-increasing number of chains further complicates project scopes, especially for teams endeavoring to build cross-chain applications. In the current L2 sector, progress is easily hindered when developers feel forced to navigate a convoluted landscape.
Layer 2s: A potential that’s lacking
Of course, this layer cake approach to scalability isn’t without its merits. There’s a rhyme and reason to the current disjointed system of L2 constellations dominating the blockchain sector.
On paper, L2 solutions offer substantial benefits, including enhanced scalability and speed. Offloading transactions from an L1 to an L2 means increasing the overall volume of transactions that can be processed by said L1. Following the reaction further, L2s can lead to faster and more cost-effective operations, enhanced security, and an extra layer of protection for sensitive transactions.
However, these benefits, as we’ve seen, may only outweigh the disadvantages for so long. Fragmentation creates a complex web that can feel overwhelming, especially as the landscape of L2 solutions continues to expand and a clear solution remains elusive.
A unified approach
Fortunately, there is a promising solution to the challenges presented by the L2 race—chain abstraction. By removing the complexities and overarching technicalities of the blockchain that regularly interfere with usability, chain abstraction can help maintain the broader benefits of decentralized technology while also lowering the barrier to entry to general consumers.
A solution that many proponents of mass adoption are already in support of, chain abstraction allows us to create a unified layer that communicates with multiple blockchains and simplifies user interactions. This approach allows users to manage their assets and execute transactions without needing to understand the intricacies of each underlying layer.
Of course, chain abstraction doesn’t simply exist on its own, which is where omnichain infrastructure comes into play. As a practical application of chain abstraction, omnichain infrastructure takes the concept further by empowering the creation of a cohesive, interoperable ecosystem that facilitates seamless interactions across various blockchains.
By powering fragmentation solutions such as seamless cross-chain transactions and secure and efficient verifications while incentivizing developer flexibility, omnichain infrastructure makes a simplified user-centric design possible and blockchain interactions more intuitive and efficient.
Multichain today, omnichain tomorrow
So, where do we go from here?
While it’s true that the proliferation of L2s has ushered web3 into an era of fragmentation, complexity still exists throughout the blockchain. Layers are to be found everywhere, both within and beyond the L1 and L2 paradigms. Ultimately, this convolution only becomes more rampant as legacy institutions and consumer interests lead to bursts of new innovation, new platforms, and new needs.
This is where our initial question comes back into view. Because for the majority of new users, anything beyond a single integrated layer might simply be too many.
If scalability is as important as most devs make it out to be (and spoiler alert, it is), we cannot glaze over the potential of omnichain infrastructure to aid in our mass adoption journey. By interconnecting products and blockchains, uniting data to create seamless experiences, and making the power of web3 easily accessible, we can fuel even the most ambitious endeavors.
One of Bitcoin’s (BTC) most attractive features is its volatility, which is also its most daunting aspect. Managing this volatility is key, and native Bitcoin yields can help achieve this. These yields allow investors to build up their portfolios while protecting them from the worst of market movements.
But volatility is by no means a flaw; it’s a feature of decentralized and permissionless crypto markets. After all, Bitcoin’s high volatility leads to high returns. However, it can’t be denied that this volatility loses its charm when prices are not consistently rising (or falling) but instead fluctuate frequently in both directions.
Volatility, in fact, has also been identified as a critical barrier that keeps institutional investors from allocating to Bitcoin, as revealed by a Fidelity survey. Large swings in price, in either direction, render an asset highly volatile and thus riskier. This is because volatility makes prices less predictable.
So, on the one hand, we have periods between broader bull and bear trends, like we are experiencing right now, that make volatility unbearable. On the other hand, as Bitcoin matures, its volatility is shrinking each cycle. The approval of spot Bitcoin exchange-traded funds has the asset’s volatility hitting its 2024 peak at 40%, far lower than 2021’s 106% record highs. While it’s too early to say if this is the new normal, the lower volatility means we won’t be seeing a high percentage of gains going forward.
It is time for Bitcoin yields
In a highly volatile market like crypto, Bitcoin yield gives the opportunity to earn consistent and stable returns, hedging some of the price volatility. This steady stream of passive income can be earned without needing to sell BTC. In this way, a BTC holder can finally put their asset, which has been sitting idle for years, to good use.
Having access to yield-generating opportunities further promotes broader acceptance and use of Bitcoin, especially among institutional investors who are always looking for yield strategies.
Even short-term holders may get inclined to HODL their BTC for a longer time period if they have an opportunity to increase their investment over time as they get to benefit from both price increases and a constant supply of income. This, in turn, can reduce market selling pressure, and as demand increases for yield-generating assets, it can further help the asset enjoy a more positive price performance.
There’s clearly a strong case for Bitcoin yield but where is this yield exactly coming from?
The growth of DeFi on Bitcoin
So, in the Bitcoin realm, there hasn’t really been any development to expand the ecosystem, with the trillion-dollar crypto asset only being utilized as a passive store of value. But now, times have changed, and both developers and users want to have fun and do exciting things with Bitcoin. This has led to a new wave of development on Bitcoin, which has given rise to BTC DeFi. The growth of decentralized finance on Bitcoin has resulted in varied sources of Bitcoin yields.
These yield sources include Bitcoin layer-2 solutions that enable BTC holders to enjoy staking rewards, which are determined by market dynamics. Babylon is another Bitcoin staking protocol built on Cosmos that allows BTC holders to stake their Bitcoin on PoS chains without giving up the custody of their assets.
We at pSTAKE Finance also offer Bitcoin liquid staking, for which we have collaborated with Babylon to offer boosted yields. While we are starting with Babylon to provide the primary source of liquid staking yields, which is generated through economic security, we will eventually introduce yBTC as well as multiple avenues for yield to offer a diverse range of earning opportunities.
All these different solutions not only enable BTC holders to earn yields but also offer Bitcoin miners an additional source of revenue. On top of that, Bitcoin’s decade and a half long resilience and trillion-dollar security can be utilized to secure other chains.
In the future, Bitcoin yields, which are determined by the market instead of a central bank, may even be used to set the base rate of return for crypto markets, much like how US T-bills are used to set a base rate of return for financial markets.
So, the yield has far greater and broader implications that go beyond Bitcoin holders and the ecosystem. All this activity and investment into enabling native yield generation on Bitcoin can also lead to a resurgence of DeFi, which took a bigger hit during the 2022 bear market compared to the rest of the industry. Moreover, Bitcoin, which is a distributed, battle-tested, and censorship-resistance peer-to-peer network, can lay the foundation for a robust DeFi sector. With Bitcoin being the most accessible and universal asset class that has a capped supply and can’t be printed endlessly, all this innovation can finally lead to the truest version of DeFi.
Now, to conclude, we are clearly at the beginning of a stellar journey, but for this to become a reality, we need to focus on continued development and innovation in order to build a better future for our financial and economic systems.
What are the key trends highlighted by the global crypto adoption index, and how do they reflect crypto’s role in global economic shifts?
The global crypto adoption index is an essential tool for understanding how well different countries are adopting crypto. But why is this important?
Well, in a world that’s becoming increasingly digital, knowing where crypto is gaining traction helps us see the bigger picture. Let’s dive deep into what the index is, how it’s calculated, and what it says about the future of crypto adoption worldwide.
Table of Contents
What is the global crypto adoption index?
The global crypto adoption index serves as a comprehensive tool to measure how countries are engaging with crypto assets. Think of it like a report card, evaluating each country’s progress in embracing crypto assets.
The index considers multiple factors, including the number of users, the volume of crypto transactions, and the growth of crypto-related businesses within a country. Experts also assess key indicators such as retail activity, institutional participation, and the role of decentralized finance.
The index’s main goal is to gauge how deeply crypto is integrated into everyday life — whether it’s being used for routine transactions like remittances or online payments or treated as a long-term investment asset.
For instance, a country that ranks high on the index likely has a strong ecosystem of crypto exchanges, widespread business acceptance, and a large population using crypto for savings or sending money abroad.
On the other hand, countries with lower scores may show fewer real-world applications, with crypto mostly held as an investment by a smaller portion of the population.
The index is updated regularly to capture the fast-evolving crypto space, reflecting changes driven by technology, regulations, and economic shifts.
Methodology behind the crypto adoption index
The crypto adoption index goes beyond simply ranking countries by how many people own Bitcoin (BTC) or Ethereum (ETH). It delves deeper, evaluating how crypto is integrated into everyday life.
The index’s methodology focuses on three core areas: transaction volume, peer-to-peer trading, and a weighted analysis to account for economic factors.
First, experts examine transaction volume, which includes how often people use crypto to pay for goods, services, or even bills.
Next, the index tracks peer-to-peer trading volumes. This metric is crucial in areas with limited access to traditional financial services. In such regions, P2P platforms enable users to trade crypto directly, bypassing banks or regulated exchanges. P2P trading is especially prominent in countries facing economic challenges.
The final element of the methodology involves a weighted analysis that adjusts for each country’s population size and economic conditions, ensuring fair comparisons. One key factor in this process is purchasing power parity, which adjusts for differences in the cost of living between countries.
By weighting crypto activity based on a country’s GDP per capita on a PPP-adjusted basis, the index offers a clearer picture of how crypto adoption impacts individuals rather than merely reflecting economic power. This method ensures that smaller nations with less economic output aren’t overshadowed by larger, wealthier countries.
For example, a smaller economy with high crypto usage relative to its size will score higher than a developed nation where crypto is mostly concentrated among investors.
Current global trends in crypto adoption
The crypto adoption across the globe reveals interesting trends that showcase how the world is embracing crypto assets. A critical observation is the widening gap between developing and developed nations regarding crypto adoption.
While early adopters like the U.S., Japan, and South Korea maintain strong positions, the most substantial growth in crypto usage is occurring in emerging markets.
For instance, Latin American countries such as Argentina and Brazil have seen a surge in crypto adoption, primarily driven by economic instability and high inflation rates.
Argentina, battling hyperinflation for years, had over one-third of its population engaging with crypto in 2023, according to the Crypto Council for Innovation’s report. Citizens are using digital assets as a hedge against their rapidly devaluing national currency.
Similarly, Brazil has experienced a noticeable rise in crypto users as it seeks alternatives to its weakening real.
Africa is another region demonstrating high levels of adoption, particularly in countries like Nigeria and Kenya. In Nigeria, where a large portion of the population is unbanked, over 45% of citizens have engaged with cryptocurrency in some form.
Meanwhile, Southeast Asian countries such as Vietnam and the Philippines continue to lead in adoption rates. In these regions, the rise of blockchain-based gaming and play-to-earn models, where users earn crypto by playing online games, has captivated young populations seeking new income opportunities in a region with relatively lower wages.
In contrast, developed nations like the U.S., Germany, and Japan exhibit a more investment-focused trend in crypto adoption. Investors in these countries are turning to cryptocurrencies to diversify their portfolios and as a hedge against traditional markets.
Data also highlights that institutional investments have also fueled adoption in wealthier countries, with major financial firms incorporating crypto into their offerings.
For example, in the U.S., investment giants like BlackRock and Fidelity have launched crypto funds aimed at both retail and institutional investors.
The global trend is clear: in developing countries, crypto is becoming a vital tool for financial survival and accessibility, while in developed nations, it serves primarily as an investment vehicle.
Crypto adoption by country: 2024
Crypto adoption continues to vary largely across different countries, with some regions experiencing remarkable growth over the past year.
According to Chainalysis’ 2024 global crypto adoption report, between Q4 2023 and Q1 2024, global crypto activity surged, surpassing levels seen during the 2021 bull market.
When examining data from 151 countries, it’s evident that while some nations are leading the charge, the landscape is evolving in diverse ways.
Country
Region
Overall index ranking
Centralized service value received ranking
Retail centralized service value received ranking
DeFi value received ranking
Retail DeFi value received ranking
India
CSAO
1
1
1
3
2
Nigeria
Sub-Saharan Africa
2
5
2
2
3
Indonesia
CSAO
3
6
6
1
1
United States
North America
4
2
12
4
4
Vietnam
CSAO
5
3
3
6
5
Ukraine
Eastern Europe
6
7
5
5
6
Russia
Eastern Europe
7
11
7
7
7
Philippines
CSAO
8
9
8
14
9
Pakistan
CSAO
9
4
4
18
13
Brazil
LATAM
10
8
10
10
14
Türkiye
Middle East & North Africa
11
14
11
15
11
United Kingdom
Central, Northern & Western Europe
12
12
21
9
8
Venezuela
LATAM
13
17
16
11
12
Mexico
LATAM
14
18
17
13
10
Argentina
LATAM
15
13
13
17
20
Thailand
CSAO
16
16
15
19
16
Cambodia
CSAO
17
10
9
35
23
Canada
North America
18
22
26
16
15
South Korea
Eastern Asia
19
15
14
33
33
China
Eastern Asia
20
20
18
24
22
2024 global crypto adoption index top 20 | Source: Chainanalysis
One of the most surprising trends in the crypto adoption index is that last year’s growth was primarily driven by lower-middle-income countries.
Nations like Nigeria, India, and Vietnam experienced substantial increases in crypto usage, as people turned to crypto as an alternative to their national currencies, which were often weakened by inflation or economic instability.
However, the first quarter of 2024 also revealed an increase in crypto activity across all income brackets, with a slight pullback in high-income countries like the U.S. and Germany.
A major driver of increased crypto adoption in wealthier nations was the launch of spot Bitcoin ETFs in the U.S., which sparked a surge in Bitcoin activity, particularly in North America and Western Europe.
Institutional-sized Bitcoin transfers saw strong year-over-year growth, indicating that large companies and financial institutions are becoming more involved in the crypto market, further fueling adoption among high-income countries.
Meanwhile, regions such as Sub-Saharan Africa and Latin America are seeing a different type of growth. In these areas, stablecoins are increasingly used for real-world applications, like remittances and everyday transactions, particularly among retail users and smaller businesses.
Another notable development is the rise in DeFi activity, especially in regions like Sub-Saharan Africa, Latin America, and Eastern Europe. This surge in DeFi has also led to increased altcoin activity, as many platforms operate on altcoins beyond Bitcoin and Ethereum.
Factors influencing crypto adoption
Several key factors influence crypto adoption across different countries, each playing a crucial role in how people interact with crypto.
One of the most important factors is economic instability. In nations experiencing rampant inflation or a devaluation of their national currency, people often turn to crypto as a safer way to store and transfer wealth.
Another critical factor is access to traditional financial services. In many developing countries, large portions of the population are unbanked, meaning they lack access to banks or financial institutions.
Crypto offers these individuals a gateway to the global economy, enabling them to make transactions, save money, and even invest without needing a bank account.
Government regulations also play a key role in shaping crypto adoption. Countries with clear, favorable crypto regulations tend to experience higher adoption rates, as people feel more secure engaging with digital currencies when there’s a stable legal framework in place.
Lastly, technological infrastructure, such as internet and smartphone access, plays a crucial role. Countries with widespread internet availability and affordable mobile devices are better equipped to adopt crypto on a large scale, as digital transactions and wallets depend heavily on technology.
Benefits of high crypto adoption
Countries with high crypto adoption often experience several benefits for their economies.
One of the most immediate advantages is financial inclusion. Through crypto, people can conduct transactions, save, and invest without the need for a physical bank account or paying steep fees for cross-border payments.
Another major benefit is the democratization of finance. Crypto empowers individuals to manage their finances independently, without relying on governments or intermediaries, allowing users to borrow, lend, and trade assets without traditional institutions.
High crypto adoption also stimulates economic growth by attracting investment and fostering innovation. For example, countries like El Salvador, which made Bitcoin legal tender, have seen a surge in foreign investment and tourism.
Additionally, widespread crypto use can help stabilize economies facing currency volatility. In nations with high inflation, crypto serves as a store of value, offering citizens an alternative to their depreciating national currency.
Future of the global crypto adoption index
One key driver for global crypto adoption could be the development of central bank digital currencies. Governments in China, India, and the European Union are either exploring or actively developing their own digital currencies.
While CBDCs differ from cryptocurrencies, their introduction could further legitimize digital assets and accelerate global crypto adoption.
Additionally, as more institutional players enter the crypto space, activity in high-income countries is expected to increase. The launch of products like Bitcoin ETFs has already shown how institutional interest can drive adoption.
In the coming years, traditional financial institutions, including banks and hedge funds, may begin offering more crypto-related services, boosting the crypto adoption index in wealthier regions.
However, challenges remain, particularly in the area of regulation. Some countries may introduce stricter regulations to control the use of cryptocurrencies, potentially slowing down adoption.
On the other hand, nations that maintain crypto-friendly policies are likely to see their crypto adoption index scores continue to rise.
Overall, crypto’s role as both a financial tool and an investment vehicle will keep evolving, shaping global markets in unpredictable ways.
It’s time to start learning Dzongkha. That’s the language of Bhutan, a South Asian country on the Himalayas’ eastern edge that is one of two confirmed nation-states mining Bitcoin (BTC) today (the other being El Salvador).
Bhutan made the fateful decision to build out a world-class hydroelectric power production infrastructure in order to leverage one of the largest water reserves in the world, as well as the country’s dramatic attitudinal change, which creates swift-flowing rivers and makes Bhutan a natural haven for hydroelectric.
With so much abundant electricity, much of which is sent to neighboring and energy-deficient India, the nation decided to begin building bitcoin mines with the official goal of ensuring the nation’s economic self-reliance and socio-economic development.
Indeed, by leveraging its hydropower infrastructure to mine Bitcoin, Bhutan ensures its own self-reliance and socio-economic development. It can ensure these even further by being the first nation on planet Earth to adopt a Bitcoin standard.
Mining Bitcoin now creates new currency possibilities
The holdings make Bhutan the fourth-largest government holder of Bitcoin in the world behind nations which confiscated their BTC during law enforcement busts: US, China, and UK. Bhutan is, in fact, ahead of El Salvador’s holdings. And since 2023, Bhutan has only increased its Bitcoin mining capabilities.
One million people make up the population of Bhutan, from the tropical southern plains to the brutal winters and cool summers of the northern Himalayas. And so, at the time of writing, the nation’s holdings from Bitcoin equals approximately 0.122 BTC per person or nearly $8,000.
As Bhutan’s Bitcoin holdings and mining infrastructure gain more domestic and geopolitical relevance with the devaluation of fiat currencies worldwide, Bhutan will find itself in a prime position to innovate in the realm of monetary policy and Bitcoin.
On a Bitcoin standard, Bhutan could keep its monetary unit, Ngultrum. That would be in keeping with countries pegging their own individual national currencies to gold under the gold standard of the nineteenth and early twentieth century, while keeping their own currencies.
Thus, Bhutan’s currency would circulate alongside Bitcoin, whilst simultaneously pegged to Bitcoin. In other words, the notes would be redeemable for BTC. The currency would remain fiduciary, since it is not fully backed by bitcoin.
Under the gold standard, central banks partially backed the issued notes with gold. Bhutan’s monetary authority would presumably define the amount of bitcoin to peg to the monetary unit.
However, there would be sacrifice on the side of the state under a Bitcoin standard. If it were to adopt a Bitcoin standard, Bhutan would not be able to conduct an interest rate policy to change domestic economic conditions without depegging from Bitcoin—something any nation-state might eventually be tempted to do.
The times are changing in Bhutan
Bhutan didn’t have electricity until 1966. For comparison, England opened its first hydroelectric plant in 1878, and the US opened its first power plant in 1882. Despite being ranked 133rd in terms of land area and 160th in population today, Bhutan is proving itself a 21st-century leader.
The nation’s investment in hydropower has fueled economic growth already. Bhutan’s decision to exploit its water resources for the production of electric, and the decision to use some of this electricity to mine Bitcoin, could drastically change the economic outlook of the landlocked country based on its Bitcoin accumulation alone.
By backing the Ngultrum with Bitcoin, Bhutan would shock the known universe by going on a bitcoin standard just like the world used to be on the Classical Gold Standard. Bhutan could draw up the Bitcoin standard “rules of the game” that countries will follow as they too adopt a better way of life than central bank fiat currencies.
If Bhutan adopts a Bitcoin standard, it might one day act as a lender of last resort for countries and institutions facing acute crises. Under a Bitcoin standard, as argued by Warren E. Weber for the Bank of Canada in his 2015 thought experiment, Bhutan might expect “mild deflation, low nominal interest rates, and good output growth under the Bitcoin standard.”
Refik Anadol Studio, co-founded by Refik Anadol and Efsun Erkiliç in 2025, is launching an immersive AI art & NFT museum called DATALAND at The Grand LA, with a flagship location at the Frank Gehry-designed development in the heart of downtown Los Angeles.
DATALAND will feature immersive AI art experiences by establishing a new model for artistic expression at the onset of the digital age by taking immersion to the next level with the AI-powered scent of the galleries. As AI artist Refik Anadol explained to me:
“We aren’t yet revealing the details about DATALAND’s artistic programming, but there will be many moments for sharing/exhibiting AI artists’ work both physically and virtually so people who cannot travel to LA have access to the AI art creations. And can purchase the AI art work NFTs minted on an Ethereum-based platform and many other sustainable chains for exciting art and culture activities.”
Refik Anadol Studio announced the launch of DATALAND during Climate Week NYC, which is celebrated NYS-wide for the first time and runs parallel to the United Nations General Assembly meeting, where world leaders gather to address critical global challenges. DATALAND’s inaugural exhibitions will be prepared with the Large Nature Model, an open-source AI model based solely on nature data, to produce unprecedented immersive AI-powered digital environmental artwork. The studio initially presented such installations at the 2024 World Economic Forum in Davos, Switzerland, and then at the United Nations in New York during the 2024 UNGA to promote environmental awareness. As UN Under-Secretary-General Melissa Fleming concurred:
“Refik Anadol’s artwork is a testament to the beauty and fragility of our natural world. It’s a clarion call to world leaders: we must harness the power of technology [AI art & NFTs] and human ingenuity and agency to incite action to protect our planet before it’s too late.”
The award-winning studio has been engaged by leading tech companies, groundbreaking researchers, and cutting-edge thought leaders to produce projects that have been shown in more than 70 cities spanning six continents and experienced by millions of ardent fans. These exhibition venues include several United Nations Climate Change Conferences, MoMA, Centre Pompidou-Metz, Serpentine Galleries, National Gallery of Victoria, Venice Architecture Biennale, Hammer Museum, Arken Museum, Casa Batlló, Dongdaemun Design Plaza, Daejeon Museum of Art, and Istanbul Modern Museum. Nevertheless, Refik Anadol Studio, as explained by Refik, chose “Los Angeles as the perfect city to launch DATALAND, a forward-thinking, revolutionary museum in support of the fields to which I have dedicated my career: art, science, technology, and AI research.” And he continued:
“As LA has long been a city that looks to the future in art, music, cinema, architecture, and more, it feels natural to open DATALAND here. To have a permanent space for us to develop a new paradigm of what a museum can be—by fusing human imagination with machine intelligence and the most advanced technologies available—is a realization of one of my biggest dreams. To do so in a building designed by one of my heroes, Frank Gehry, is almost unbelievable.”
DATALAND will use millions of photos and other records from partner museums, including the Smithsonian and London’s Natural History Museum, to create its installations. “We already have three major collaborations with museums in the works and are very confident to join forces across the world,” added Refik.
History of AI art, NFTs, and museums
Christiane Paul, the digital art curator of Whitney Museum, who is “looking forward to learning more about DATALAND,” detailed the AI Art History at the groundbreaking symposium at Rhode Island School of Design’s “Debates in AI” held during April 11-12, 2024, that invited artists worldwide. She explained that AI art has a fascinating history that intertwines technology and creativity, and it continues to evolve, pushing the boundaries of what is possible at the intersection of technology and creativity.
Christiane Paul, curator of Digital Art at Whitney Museum, debates in AI art history
Early beginnings: 1950s-1970s. The roots of AI art can be traced back to early experiments with computer-generated art, where artists and computer scientists collaborated to create visual and abstract compositions using early computer algorithms. One notable example from this era is captured by the Whitney Museum’s exhibition curated by Christiane Paul with David Lisbon tracing the evolution of Harold Cohen’s AARON, the earliest artificial intelligence program designed to create drawings and paintings. AARON was first exhibited in 1972 at the Los Angeles County Museum of Art.
Advancements in algorithms: 1980s-2000s. During this period, algorithms and computing power advancements allowed for more complex and varied artistic outputs, and AI art began to gain recognition in academic and artistic circles.
The city of Los Angeles, which will become home to DATALAND, served as grounds for the Gray Area Foundation, a cultural incubator with a mission to cultivate, sustain, and apply antidisciplinary collaboration, back in 2002 to integrate art, technology, science, AI, and the humanities—towards a more equitable and regenerative future. This foundation moved its headquarters to San Francisco in 2005.
Deep learning revolution: 2010s. The advent of deep learning brought significant changes with generative adversarial networks and other machine learning techniques that enabled the creation of highly sophisticated and realistic artworks. AI art started to be exhibited in NFT form in galleries and museums and auctioned in prominent auction houses, raising questions about creativity and authorship.
In 2014, digital artist Kevin McCoy issued the first-ever art NFT.
Four years later, in 2018, Christie’s art auction house became the first auction house ever to offer AI artwork for sale. Christie’s also hosted its first Art + Tech Summit on the topic of blockchain. In June 2019, the second edition focused on artificial intelligence and art. Since then, blockchain, NFTs, and AI have been hot topics in the art world, intersecting unexpectedly. At the helm of digital curator Christiane Paul, Whitney Museum became an early collector of NFTs starting in 2018.
Mainstream adoption: 2020s. The increased availability of AI art tools to the general public has democratized the creation of AI-generated images. This era has also seen debates about NFTs, its market bubble and crash, copyright, the impact on traditional artists, and the ethical implications of AI in art.
In Germany, the Intelligent Museum—a practice-based research and development project at the ZKM | Center for Art and Media Karlsruhe and the German Museum—was backed by the Digital Culture Programme of the German Federal Cultural Foundation in 2020. It explores new paths of museum communication and outreach to connect the museum with current AI technologies, making it a place of experience and experimentation, a social space where art, science, technology, and public discourse come together. One of the best-selling AI-generated NFT artists exhibited at ZKM is a program called Botto, which is the brainchild of computer engineers and a German artist named Mario Klingemann in 2021 that creates AI art NFTs. Today, Botto has created over 75 NFTs that generated more than $3 million in revenue.
In New York City, the Museum of Modern Art—ahead of holding its first-ever AI Art Show curated by Michelle Kuo, “Unsupervised”by Refik Anadol—became the beneficiary of a major new endowment established by the William S. Paley Foundation to support MoMA’s ambitious goals in digital media and technology and to provide for new AI Art/NFT acquisitions. Henry Kissinger, Chairman of the William S. Paley Foundation at the time, stated:
“I know how deeply my friend Bill Paley cared about The Museum of Modern Art and with what devotion he dedicated himself to its advancement. With this initiative, the Foundation will honor his intention and continue his vision for MoMA.”
Nevertheless, MoMA has adopted a cautious approach to NFTs so far. Other than contributing data to algorithmically generated works by artist Refik Anadol and, in October 2023, announcing that it had acquired “Unsupervised” for its permanent collection, the museum has not been involved with other AI art or NFT projects.
In Singapore, curated by ArtScience Museum’s Deborah Lim and guest curator Clara Che Wei Peh, “Notes From the Ether” last year was an exciting and timely exhibition that offered a glimpse into the future of digital art with work by 20 artists: Memo Akten, Burak Arikan, Botto, Mitchell F Chan, DEAFBEEF Simon Denny, Harm van den Dorpel, Sarah Friend, Rimbawan Gerilya, Holly Herndon and Mathew Dryhurst, Tyler Hobbs and Dandelion Wistjo+kapi, Larva Labs, Jonas Lund, Ninaad Kothawade, Sarah Meyohas, Rhea Myers, Aaron Penne, Aluan Wang, Emily Xie. These artists work with the emerging technologies of non-fungible tokens and generative artificial intelligence to push the boundaries of what art is and what it could be.
The future of museums AI art and NFTs
Undoubtedly, over the past 40 years, the usage of AI-generated art has been on the rise, becoming all the more popular during the last ten years with the tokenization of art via NFTs, according to the Academy of Animated Art. As Vilas Dhar, President of the Patrick J. McGovern Foundation, explained:
“AI is not just a tool for innovation—it’s a force that can reshape how we see our planet, reconnecting us with the beauty and fragility of nature in ways never before possible. Refik Anadol’s brilliant vision allows us to use technology [AI Art & NFTs] to engage the senses and spark a deeper emotional connection to our natural world.”
Magda Shawon, co-founder of Postmasters Gallery in New York City, who works with the first NFT Artist Kevin McCoy, has been selling digital, AI-generated art to museums such as MoMA, the Metropolitan Museum of Art, and The Whitney Museum of American Art for over 20 years. She agrees with Vilas and Melissa’s sentiments about Refik’s impactful AI artwork:
“People don’t want to stop watching Refik Anadol’s AI Work when they sit in front of it. Refik’s work has an impact, but whether it is a trigger to create an enormous field of AI generative art, NFT sales is a big question.”
Digital art has been collected for as long as it has existed, but widespread adoption is still nascent. The tokenization of art via NFTs has helped the digital art world and the traditional art world integrate, leading to a burgeoning interest from museums, immersive institutions, collectors, auction houses, NFT markets, and galleries. The first NFT artist, Kevin McCoy, who created an art NFT back in 2014, is hopeful and supports Refik’s museum, AI art, and NFT initiative. He highlighted:
“I’m heartened by Anadol’s announcement of Dataland. He is leading by example both with his ‘ethical AI’ initiative and the commitment to the exhibition and preservation of AI and digital art that the museum represents. Within this context, the provenance provided by NFTs and blockchain-based records, more generally, can play a central role. This will be an important next step in the expanding use of this technology.”
The swift integration of digital payments has positioned web3 wallets as a central component of today’s financial ecosystem. In light of Thailand’s $13 billion digital wallet initiative, the question of how to build secure and scalable web3 wallets has become more urgent than ever. Are current web3 wallets truly ready for mass adoption, and what are the ways to address some of the most significant challenges in the space?
The expansion of wallet use cases
Web3 wallets, often regarded as gateways to the decentralized world, are evolving fast. Initially, their main use case revolved around storing and transferring cryptocurrencies. However, their utility now extends far beyond that. Non-custodial wallets are transforming the concept of ownership and control, empowering users to directly manage their digital assets, tokens, and even NFTs. They are becoming essential for DeFi, iGaming, and even governance voting within DAOs.
As these use cases expand, so does the adoption of web3 wallets. And Bitget Wallet’s rapid growth might be a good indicator of this trend. A significant factor in this growth has been Bitget Wallet’s web2 integrations, which boosted its monthly active users to 12 million, and tap-to-earn games, which have attracted a large audience by implementing wallet features directly into engaging mobile games. This has proven to be a major driver of adoption, particularly for regions where traditional finance is limited.
Challenges to adoption
Along with the growth, web3 wallets face significant hurdles when it comes to mass adoption. One of the most prominent challenges is security. A CertiK report recently revealed over $1.84 billion in security incidents tied to wallet vulnerabilities. While offering enhanced control, non-custodial wallets also place the security burden directly on users. It presents a high-risk scenario, particularly for individuals who are not technically savvy.
Implementing keyless multi-party computation technology is one way to address these issues. The upgrade eliminates the storage of private keys on any device or server, reducing the risk of hacking significantly. MPC provides a robust security layer without sacrificing convenience, as it distributes the control of private keys across multiple parties.
Another feature to tackle security concerns head-on is a self-custody model. Users maintain full control over their private keys, ensuring they, not third parties, are responsible for their assets. This self-custody feature is critical in empowering users, as it reduces the reliance on intermediaries and centralized custodial services that are prone to hacking. Users can trust that their assets are fully under their control, enhancing both security and user confidence.
Additionally, the incorporation of established web2 platforms like Telegram for user onboarding displays an innovative strategy for bridging the gap between web2 and web3. This kind of integration lowers the entry barriers, making it easier for new users to transition into the world of DeFi with no need for a comprehensive understanding of the complexities behind blockchain technology.
While scaling quickly to meet growing demand, especially as digital payments gain traction globally, wallets must ensure that their security measures remain ironclad. The ease of use and security often exist in a trade-off. Wallets that emphasize user-friendliness may risk cutting corners in security. On the other hand, more secure wallets often require a level of technical expertise that can be a barrier to mainstream adoption. Striking a balance between these two factors is critical for the long-term success of web3 wallets.
What comes next?
Looking forward, the future of web3 wallets will depend on their ability to continue evolving in line with the broader adoption of digital assets and payments. Web3 wallets will need to be both scalable and secure to meet the needs of a diverse, global audience. The path forward will likely involve further innovations in security, including the wider adoption of MPC technology, as well as efforts to make web3 wallets even more accessible to non-crypto natives.
