As the first cryptocurrency, bitcoin (BTC-USD) maintains a sizable share of the total crypto market capitalization given its reputation and name recognition. With an increasing number of developing economies embracing BTC as legal tender, the mainstream acceptance and use of BTC for everyday transactions, too, is accelerating.
To ascertain BTC’s usage in emerging markets, cryptocurrency exchange AAX recently commissioned a survey. The survey conducted by Forrester Consulting indicates that awareness and adoption of BTC across emerging markets in the Middle East, Southeast Asia, Latin America, and Africa have surged.
Additionally, the survey data underlines that consumers from these regions are actively exploring BTC for other utilities beyond investment and speculation.
Forrester Consulting surveyed 806 participants spanning Africa, Southeast Asia, Latin America, and the Middle East between February 2022 and June 2022. Moreover, the Forrester team conducted eight qualitative interviews with senior decision makers from leading financial organizations and insurance institutions across the four regions.
According to the report shared by Forrester Consulting, 74% of the total participants were already aware of bitcoin and its existing uses. Meanwhile, 52% reportedly noticed an increase in BTC usage in their respective areas between May 2021 and May 2022.
The report further indicates that around 91% of respondents believe that BTC will play a significant role in enabling a digital future for all – something that is already a work in progress across several emerging markets.
Charting a Sharp Rise in BTC Usage Across Emerging Markets
The numbers from this newly published report suggest that the usage and adoption of BTC across emerging markets will continue to expand since BTC is increasingly used to bridge the digital transaction gap. Despite the price volatility and prevailing market conditions, BTC facilitates low-cost local and cross-border transactions and unlocks revenue opportunities.
The data also points to a potential leap-frog effect in bitcoin dominance as consumers across these emerging markets increasingly use BTC for everyday transactions.
Emerging market currencies are often subject to similar concerns about transparency, reliability, and demand as BTC. At the same time, consumers from emerging markets are generally accustomed to currency volatility and value loss, meaning they are less likely to face a stark choice between local fiat and bitcoin.
Since BTC offers a cross-border infrastructure to emerging market consumers that may be faster, more secure, and more dependable than those available from local banks, the adoption of BTC in these regions is multiplying.
The AAX-commissioned Forrester Consulting survey reinforces that while developed markets are conservative about BTC’s use as a digital currency, consumers across emerging markets have a different point of view.
For instance, the report clarifies that consumers across the Middle East and Southeast Asia mainly use BTC as a means of money management. Most of the respondents from the Middle East and Southeast Asia stated that they invest in BTC for one or more of the following reasons:
- Saving for the future through value preservation: 45% of respondents from the Middle East and 51% from Southeast Asia
- Generating profits: 42% from the Middle East and 47% in Southeast Asia
- Hedge to protect themselves from potential losses: 41% in the Middle East and 44% in Southeast Asia
Of the African respondents, 46% said they primarily use BTC to make payments and transfers. Survey participants from the African region have indicated that they have been using BTC as a medium of transferring funds domestically.
At the same time, the report highlights that most consumers in Latin America use BTC to receive payments and transfers. Almost 40% of Latin American participants confirmed that they have been receiving payments and transfers in BTC through various local and international mediums. Around 53% of Latin American BTC users said they had received 25% or more of their income in BTC over the past 12 months.
Underscoring BTC’s growing adoption and use in emerging markets, Ben Caselin, Head of Research and Strategy at AAX, notes, “For many users in emerging markets, bitcoin offers an alternative to the banking system that is easier to access, more secure, and protected from government intervention.
“We believe this study really shows us the potential of bitcoin to power a different, fairer, and more inclusive financial system for everyone – not simply an investment vehicle for institutions and a wealthy minority.”
