Inflation pushes toward digital: cryptocurrency in the daily life of developing countries

How cryptocurrencies are used

According to the Global Crypto Adoption Index by Chainalysis, in 2023, 7 out of the 10 countries with the highest cryptocurrency adoption rates were in the Global South. Cryptocurrencies proved most popular in Vietnam, India, Pakistan, Nigeria, Kenya, Turkey, and Argentina.

About 70% of cryptocurrency-related transactions were not for investment, but for everyday payments — from utility bills to international remittances.

Analysts predict that in two-thirds of countries with inflation above 20%, the population intends to store their savings in digital assets.

Latin America

According to the IMF, in 2023, inflation in Latin America exceeded 140%, leading to a sharp increase in demand for cryptocurrencies. Within just one year, demand for P2P services for trading digital assets rose by 210%.

In 2024, inflation remained at double-digit levels, further boosting demand for cryptocurrencies. That year, about 20–25% of Latin America's population regularly used cryptocurrency to pay for goods and services.

A key trigger was high inflation, which made salaries in crypto — especially in stablecoins — more attractive in terms of preserving purchasing power.

Experts forecast that in 2025, the trend of growing demand for digital assets in Latin America will continue. The share of workers receiving salaries in stablecoins is expected to rise, as well as the share of Bitcoin in everyday payments.

In Venezuela, by 2024, the share of crypto transactions reached 12% of the country's GDP.

In El Salvador, after the legalization of Bitcoin in 2021, the share of the population actively using cryptocurrencies for payments and transfers grew significantly. According to 2024 survey data, about 40% of Salvadorans use crypto wallets for their everyday needs.

Africa

As of 2024, about 60% of Nigerians used cryptocurrencies for cross-border payments. The share of P2P crypto transactions is also growing, with the total volume of crypto transactions reaching $500 million per month.

Cryptocurrencies are most in demand for paying rent and other basic needs. They also address problems linked to the lack of banking services for part of the population.

Although in 2021 Nigeria's government banned banks and other financial institutions from conducting operations with cryptocurrencies, by 2023 the central bank lifted this ban. It established rules for the use of digital assets, including taxation.

In Kenya, the number of active cryptocurrency users has reached 35–40%, driven by the rise of mobile wallets that enable microtransactions.

In response to the growing popularity of cryptocurrencies, the Kenyan government launched a pilot regulation project and, between 2023 and 2024, issued licenses to several platforms allowing them to provide digital asset services.

In South Africa, the number of active cryptocurrency users in 2024 exceeded 8 million. However, only about 8–12% of South Africans use cryptocurrencies daily.

In Africa, as in Southeast Asia, about 85% of users access cryptocurrencies through mobile devices. Most often, Africans use cryptocurrency to pay utility bills, which account for 60–70% of all transactions. Experts also note a significant increase in mobile payments via Lightning Network (LN) channels.

According to the African Export-Import Bank, the total number of cryptocurrency users in 2026 could exceed half a billion, with BTC payments making up 35% of crypto transactions.

Southeast Asia

Vietnam remains the leader in cryptocurrency adoption in the Asian region. Analysts estimate that more than 20% of Vietnam's population owns cryptocurrency. Stablecoins are especially popular, accounting for up to 74% of all crypto transactions, driven by the declining purchasing power of the Vietnamese dong.

In Turkey, high demand for Bitcoin and other cryptocurrencies is also fueled by high inflation, which exceeded 44% in 2024. Research shows that 20–25% of Turkish users use Bitcoin as a store of value.

In Pakistan, cryptocurrencies are actively used as an alternative to bank transfers. The volume of crypto remittances in Pakistan reaches $1.5 billion per year, despite the central bank restricting digital asset transactions.