India Scores the First Spot in Grassroots Crypto Adoption

Recently, Chainalysis has released its 2023 Geography of Cryptocurrency report. The study explores the level of grassroots crypto adoption across the globe, ranking each nation based on on-chain digital asset activity and volume weighted by purchasing power parity (PPP) per capita and other metrics.

Based on Chainalysis' 2023 Global Crypto Adoption Index, India scored the top spot in grassroots digital asset adoption among all nations. This article will explore this phenomenon, introducing the company's other important findings, as well as the implications for the country's Muslim population.

The First Rank in Grassroots Crypto Adoption

In terms of grassroots crypto adoption, Chainalysis ranked India first in the overall index, as well as in value received via centralized services, retail centralized services, decentralized finance (DeFi) protocols, and retail DeFi platforms. The only category the nation didn't pull ahead of the competition was peer-to-peer (P2P) exchange trade volume, where it achieved fifth place among the surveyed countries.

India's top score comes at a time when worldwide grassroots crypto adoption is down. Based on researchers' data, despite some recovery since late 2022 and the FTX scandal, the index shows a decreased score for both Q1 2023 and Q2 2023 compared to the statistics in the same quarters of the previous year.

However, India falls into a unique segment of nations (lower middle-income countries) where grassroots crypto adoption has managed to increase in the surveyed period. Interestingly, LMI was the only category where the total index score has remained above the pre-bull market level measured in Q3 2020. According to Chainalysis, this is a promising trend, as such nations are often on the rise, with significant economic development, as well as dynamic, surging populations and industries.

Another interesting finding of the report is that India has managed to remain a top destination for digital asset activity despite the recent guidance of the Central Board of Direct Taxes (CBDT). In addition to providing market players with a much-needed clarification, the agency imposed a whopping 30% tax on cryptocurrency gains and also a 1% tax deducted at source (TDS) on all transactions. Even amid these regulatory changes, India has claimed the top spot in grassroots digital asset adoption and remained the second-largest market in the world for crypto.

Fulfilling the Needs of India's Muslim Population

India's top spot in grassroots crypto adoption is definitely good news for the digital asset community. But there is an important aspect that should be considered: the country's large Muslim population that has been struggling to find a way to access cryptocurrencies in a way that aligns with Islamic principles.

In fact, with 14.6% of its citizens or an estimated 200 million people following the religion, India has the third-largest Muslim population on Earth. But without Sharia compliance, this massive community is unable to join the crypto market without encountering unethical business practices and haram activities like riba.

Islamic Coin has identified this pain point and aims to fill this crucial gap with an ethics-first and Sharia-compliant financial ecosystem. Powered by the community-run HAQQ Chain, $ISLM is the project's native currency. On the mission to provide the world's Muslim population with a financial instrument of the Digital Age, Islamic Coin has a finite supply and meets all the criteria of a halal asset. In fact, the currency was issued a Fatwa in June 2022 by the world's leading Muslim authorities, classifying it as a blockchain-based digital asset that aligns with the principles of Islam.

In addition to enabling seamless transactions for the Muslim community, Islamic Coin also promotes innovation and philanthropy. 10% of each $ISLM issuance is transferred to the Evergreen DAO to make investments in Islam-related ventures, donate to Muslim charities, and create direct economic value for users.

To date, the project has raised a total of $400 million of funding from investors, which helps it serve Muslim communities across India and abroad with a Sharia-compliant, ethics-first, blockchain-based financial ecosystem. But, according to Co-Founder Mohammed Al Kaff Al Hashmi, Muslims are not the only target audience of Islamic Coin.

"The global Muslim community will always be at the center for Islamic Coin. Yet, our project's reach is far more expansive, as it also has a universal appeal for those who value an ethical and transparent framework that also aligns with Islamic principles. At the same time, Islamic Coin doesn't limit its target audience to solely crypto-native individuals either. Instead, we seek to bridge the gap between crypto-savvy and non-crypto audiences, as well as everyone seeking to become a part of an ethics-first financial ecosystem. This way, we are expanding our reach and enhancing the value proposition of the project," said Al Hashmi.

Unlocking Sharia-Compliant Digital Finance

With a Sharia-compliant and ethics-first financial ecosystem, Islamic Coin can further accelerate India's grassroots crypto adoption by filling an important gap for the nation's Muslim community.

Despite the ongoing Crypto Winter, the project has achieved a significant milestone on its roadmap recently by listing $ISLM on the KuCoin cryptocurrency exchange. In the future, Islamic Coin is planning to expand its fast-growing ecosystem with a decentralized identity solution, an $ISLM-backed Swiss payment card, crypto-fiat processing services integration, Keystone wallet support, as well as a gold-pegged stablecoin developed in cooperation with top UAE banks.