Report: Global cryptocurrency owners expected to exceed 1 billion this year

According to a report from Crypto.com, the number of cryptocurrency owners worldwide is expected to exceed 1 billion by the end of this year.

“Countries can no longer ignore the growing public push for cryptocurrencies. In many cases, a more friendly stance toward the crypto industry is expected in the future,” the report states.

Crypto.com has released its “Cryptocurrency Market Size” report, analyzing the adoption of cryptocurrencies around the world.

The report shows that the global crypto population grew by 178% in 2021, from 106 million in January to 295 million in December. By the end of 2022, the number of crypto users is expected to exceed 1 billion.

The report explains that cryptocurrency adoption in the first half of 2021 has been “remarkable,” adding that the main driver of growth has been Bitcoin. Heavyweights such as Tesla and Mastercard have embraced cryptocurrencies, and discussions about cryptocurrencies are growing in the community.

Crypto.com noted: “We expect developed countries to develop clear legal and tax frameworks for crypto assets.” Taking El Salvador as an example, more countries facing high inflation economies and currency devaluation may adopt cryptocurrencies as legal tender.

El Salvador adopted Bitcoin as legal tender alongside the U.S. dollar last September. Since then, the country has purchased 1,801 Bitcoins for its treasury. However, the International Monetary Fund (IMF) has expressed concerns and urged El Salvador to abandon Bitcoin as its national currency, fearing that the digital currency could pose risks to financial stability and markets.

Fidelity Digital Assets said in a new report that 2022 could be the year that sovereign nations adopt Bitcoin. “We believe there is a very high-stakes game theory here where countries that own some Bitcoin today will be far more competitive than their peers if Bitcoin adoption increases,” the report said.

El Salvador’s President Nayib Bukele has also predicted that two sovereign nations will adopt Bitcoin as legal tender in 2022. Nigel Green, CEO of Devere Group, is even more optimistic, predicting that three more countries will adopt Bitcoin as legal tender this year.