Singapore-based cryptocurrency exchange Crypto.com has predicted that users of cryptocurrency will grow to one billion by the end of 2022. The exchange released a report suggesting this staggering rise in users based on analysis from on-chain data, growing crypto adoption, and rising inflationary concerns.
1 Billion Global Crypto User This Year, Says Crypto.com
According to a cryptocurrency market sizing report released by popular exchange Crypto.com, total crypto users worldwide could reach one billion in 2022. The report analyzes several burgeoning areas in the digital asset economy to form the foundation of its findings and support its crypto user growth predictions.
The report published on Thursday, January 20, 2022, also takes into account highly inflationary economies and the growing trend of crypto regulatory policies.
Data from Crypto.com’s analysis shows that as of December 2021, cryptocurrency adoption was growing at a rate of 3.83 percent. The number of crypto owners in the world nearly tripled from 106 million at the start of January 2021 to a massive 295 million by the end of December 2021.
Crypto.com suggests that maintaining this growth rate in 2022 could very well see global crypto users rise to one billion before 2023.
The report adds that rapid growth in crypto adoption is bound to incentive financial watchdogs to support innovation in the digital asset economy while protecting consumer investments. As these user numbers grow, sovereign nations have no choice but to introduce friendly taxation laws and regulatory policies to govern the transaction of cryptocurrency.
Also, jurisdictions with depreciating traditional fiat currencies like El Salvador could consider adopting virtual assets like Bitcoin (BTC) as legal tenders in a bid to hedge their respective economies from rising inflation rates.
Crypto Adoption Boom in 2021
Widespread cryptocurrency adoption grew in leaps and bounds throughout 2021 with multiple countries opening their doors to the world of on-chain digital assets.
As previously reported by BTCManager, BTC became a legal tender in El Salvador following President Nayib Bukele’s bid to leverage crypto in stabilizing the country’s economy. Later in August 2021, the Central American nation also approved a $150 billion Bitcoin integration fund.
Despite regulatory uncertainty and an announcement from the Central Bank of Nigeria (CBN) banning regulated institutions from dealing in virtual assets or facilitating transactions for exchanges, the CBN gave the green light for peer-to-peer cryptocurrency trading.
Following the CBN’s clarification, the Nigerian Securities and Exchange Commission (SEC) announced the start of a new Fintech division focused on crypto investments.