As a result of progressive rules and institutional adoption, both the United States and Germany are at the top of the rankings for bitcoin usage.
The United States and Germany tied for first place in the latest quarterly global cryptocurrency rankings published by analytics firm Coincub.
The United States and Germany are presently tied for first place, with Germany displacing the United States after the first quarter of 2022. Progressive regulatory regimes and substantial Bitcoin (BTC) investments by mainstream institutions account for their supremacy.
The rankings compiled by Coincub are based on nine distinct areas, including government, financial services, population, taxation, talent development and industry participants, trading, fraud, and environmental potential. New sub-categories, such as crypto education courses and initial coin offerings, were added to the current ranking system to create a more comprehensive measure.
Germany’s decision to allow its savings industry to utilise crypto investments and enjoy a zero-tax policy on capital gains of Bitcoin and Ether (ETH) kept for more than a year was a major factor in its ascent to the top of the rankings earlier this year.
President Joe Biden’s March 2022 executive order titled “Ensuring Responsible Development of Digital Assets” propelled the United States from third place to a tie for first place. The purpose of the directive is to ensure the appropriate development of the space, provide consumer protection and financial stability, and combat illegal activities.
Coincub also noted Fidelity’s intention to integrate Bitcoin exposure in certain American pension funds in April 2022 as a key factor in the country’s ascent up the cryptocurrency rankings. Parallels were drawn to a decision by the German financial services company Sparkasse to let its 50 million customers to purchase Bitcoin straight from their bank accounts.
The Swiss canton of Lugano just recognised Bitcoin as legal tender, propelling Switzerland to the third position in the worldwide cryptocurrency rankings. This allowed residents of the region to pay taxes and for municipal services using Bitcoin.
Switzerland is a leader in Bitcoin nodes and ATMs, and is home to more than 1,000 blockchain and virtual asset service providers (VASPs). VASPs must obtain a licence from the Swiss Financial Market Supervisory Authority (FINMA) and comply with anti-money laundering (AML) and Know Your Customer (KYC) regulations.
After the second quarter of 2022, Singapore is rated fourth, having fallen from first place at the end of 2021 due to recent regulatory tightening by the country’s financial regulator and central bank.
Australia completes the top five of Coincub’s crypto rankings, with the company noting a high number of initial coin offerings, exchanges, and transaction volumes, as well as a number of universities offering blockchain and crypto-related educational programmes.
The rankings compiled by Coincub combine quantitative data, like as trading or mining numbers, with qualitative factors, such as government laws and institutional sentiment towards cryptocurrencies. By combining qualitative and quantitative information, their studies aim to provide a comprehensive assessment of a country’s position.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.