<aside> 💡 TLDR: Vietnam leads the world in crypto adoption rate in the world according to Chainalysis’ latest “Geography of Cryptocurrency” report for the second consecutive year. By: @Prianka Lexman
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Vietnam is categorized as “lower middle income nation”. The main problem that the financial institutions of Vietnam face is the huge population of unbanked citizens. 69% of the Vietnamese people lack access to typical banking services. This is largely due to the the vast majority of the Vietnamese residing in rural areas. As crypto is convenient for the unbanked, we can see how Vietnam has created the perfect environment for crypto adoption and growth.
Since developing nations have less crypto infrastructure in place than developed nations, and since Vietnam has an existing gaming industry, the country has become a hub for innovation within blockchain based entertainment. As a result about 27% of Vietnamese people own currency, and 23% engage in play-to-earn games. As an indication of world-wide acknowledgement, Vietnam just hosted the Vietnam Blockchain Summit 2022 which has become of the most attractive blockchain events.
With an established gaming industry, play to earn gaming have attracted a significant amount of players as well as inspired startups. Some players even earn significantly more than a country’s average salary.
The second leading reason for crypto adoption are remittances with it accounting for 5-10% of Vietnam’s GDP..
<aside> 💡 Remittances: the action of sending money in payment
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A large portion of Vietnamese live and earn a salary abroad and send funds back to their family back at home. Real-time payment, and the absence of taxes make crypto an attractive form of remittance.
The Dong, Vietnam’s national currency is weak and subject to heavy inflation, which is yet another reason why the Vietnamese opt for crypto.
Play-to-earn game: Axie Infinity