With the digital transformation of the global economy, cryptocurrencies are gradually becoming a force to be reckoned with in the financial sector. According to a research report by CoinGecko, more than half of the countries in the world have legalized cryptocurrencies, and this trend is especially obvious in emerging markets and developing countries.
1. Global trend of legalization of cryptocurrency
Currently, 119 countries and 4 British overseas territories recognize the legality of cryptocurrencies, mostly from the Asian and African continents. This wave of legalization not only reflects increased global acceptance of cryptocurrencies, but also demonstrates emerging markets’ thirst for financial innovation.
2. Cryptocurrency legalization in Europe and America
In Europe, 95.1% countries recognize the legality of cryptocurrencies, while North Macedonia is the only European country to ban cryptocurrencies. In the Americas, 77.4% countries recognize cryptocurrencies as legal, showing the region’s openness to cryptocurrencies.
3. Cryptocurrency legalization in Asia and Africa
Asia is above the global average with a legalization rate of 77.7%, while Africa has 38.6% countries that have legalized cryptocurrencies. This data shows that despite low legalization rates in Africa, the potential of cryptocurrencies in the region cannot be ignored.
4. The potential of cryptocurrencies as a store of value
In its report, the European Central Bank noted that cryptocurrencies can provide a store of value for people in countries with unstable currencies. In countries with high inflation and devaluation of their national currencies, cryptocurrencies may become a better store of value.
5. New options for cross-border transactions
Cryptocurrencies also provide residents of emerging markets and developing economies with new options for cross-border transactions, helping to reduce transaction costs and circumvent capital controls.
6. Tesla accepts Dogecoin payment
Tesla announced on its website that it has added Dogecoin as a payment method, marking a further increase in mainstream companies' acceptance of cryptocurrency payments.
7. The rise of Hong Kong spot virtual asset ETFs
The asset management scale of Hong Kong spot virtual asset ETFs exceeded HK$2 billion in the first week of listing, showing the market's high interest in cryptocurrency-related financial products.
8. Buffett’s views on cash
Despite the buoyant cryptocurrency market, Buffett said at the Berkshire Hathaway shareholder meeting that holding large amounts of cash is "pretty attractive" relative to stock markets and global conflicts.
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