Bitcoin adoption is indeed growing faster in many poorer countries compared to wealthier ones, driven by unique economic and financial conditions that make cryptocurrencies particularly appealing in these regions. Several factors contribute to this trend, including limited access to traditional banking, currency instability, and the desire for financial inclusion.
In many developing and poorer countries, a significant portion of the population remains unbanked or underbanked, meaning they do not have access to reliable banking services. Traditional financial infrastructure is often weak, expensive, or inaccessible, especially in rural or remote areas. Bitcoin and other cryptocurrencies offer an alternative by enabling people to participate in the global economy without needing a bank account. With just a smartphone and internet access, individuals can send, receive, and store value securely, bypassing the barriers posed by conventional banking systems[1].
Currency instability is another major driver of Bitcoin adoption in poorer countries. Nations like Venezuela and Argentina have experienced hyperinflation and severe devaluation of their local currencies, eroding the purchasing power of savings and wages. In such environments, Bitcoin can serve as a more stable store of value and a hedge against inflation. People hold Bitcoin to protect their wealth from rapid currency depreciation, which traditional financial instruments often fail to provide[1].
El Salvador’s experiment with adopting Bitcoin as legal tender illustrates both the potential and challenges of Bitcoin adoption in a poorer country. While the government aimed to integrate Bitcoin into everyday transactions, from buying street food to real estate, adoption has been mixed. Issues such as security breaches of digital wallets, volatility of Bitcoin’s price, and lack of widespread education have slowed mass adoption. However, the policy has attracted international attention, increased business migration, and sparked debate about the role of cryptocurrencies in national economies[2].
Data from global crypto adoption indexes support the observation that poorer countries often have higher rates of cryptocurrency use relative to their population size. For example, Ukraine, despite being a middle-income country facing conflict, has one of the highest shares of crypto users globally. This is partly due to economic uncertainty and the need for alternative financial tools. Similarly, countries in Asia, Africa, and Latin America show rapid growth in crypto adoption driven by public interest, merchant acceptance, and infrastructure development such as crypto ATMs and exchanges[3][7].
The Henley Crypto Adoption Index 2025 highlights that public adoption in poorer countries is often fueled by a combination of factors: a high percentage of the population owning crypto, growing public interest measured by online search trends, and increasing merchant acceptance. Infrastructure adoption, including the presence of crypto-friendly banks and exchanges, also plays a role but tends to lag behind public demand in many developing regions[3].
Despite the promising growth, Bitcoin adoption in poorer countries faces significant challenges. Regulatory uncertainty is common, with many governments lacking clear policies on cryptocurrencies. This can create legal risks and hinder broader institutional acceptance. Additionally, the volatility of Bitcoin’s price can deter everyday use as a currency, limiting it more to a speculative asset or store of value. Educational gaps also slow adoption, as many potential users lack the knowledge to safely use and manage cryptocurrencies[1][2].
The digital divide remains a barrier as well. While smartphones are increasingly common, internet access and digital literacy vary widely, especially in rural areas. This limits the reach of Bitcoin and other cryptocurrencies to the most vulnerable populations. Moreover, concerns about scams, fraud, and the pseudo-anonymous nature of cryptocurrencies raise consumer protection issues that need addressing to foster trust and sustainable growth[5][8].
In summary, Bitcoin adoption is growing faster in poorer countries largely because it addresses critical financial needs unmet by traditional systems. It offers financial inclusion, protection against currency instability, and access to global markets. However, the pace and success of adoption depend on overcoming regulatory, educational, infrastructural, and security challenges. The experiences of countries like El Salvador and Ukraine provide valuable lessons on both the opportunities and pitfalls of integrating Bitcoin into developing economies.