An overview at the development, adoption, and future of cryptocurrencies in Asian countries.
The recent wave of developments in the cryptocurrency landscape has resulted in the rise in popularity of digital assets all across the globe. Digital assets are gaining predominance in the asian countries including Hong Kong, Singapore, Malaysia, India, and more.
Digital assets are currently being regulated across multiple countries. Leading firms are investing in cryptocurrencies and the interest of retail investors across Asia in the crypto landscape is rising as well. In this article, we explore the space of digital assets and its progress in asian countries. We also take a look at how Asia is adopting to the space of cryptocurrencies.
Rising Adoption of Cryptocurrencies in Asia
The crypto market is speculated to reach an all-time high by 2023, with its value rising up to $23.3 billion. Blockchain technology is believed to bring authenticity to global commerce, politics, laws, and many more. But for widespread acceptance, it makes perfect sense that governments are trying to regulate the environment in which blockchains are allowed. Most countries have been reluctant in the adoption, fearing the replacement of traditional financial systems. However, governments are now evolving from this perception.
Asian countries have not lurked behind in the rising wave of blockchain adoption. Statistics show that 31% of worldwide transactions through cryptocurrency between 2019 and 2020 came from East Asia, projected to be 77% more than Europe's crypto transaction.
Cryptocurrency exchanges are also four times higher in comparison to the West. Moreover, investments in crypto assets are even higher in Asian countries than in Western nations, making Asia the mining hotspot with slightly over half of the total hash rates. Hash rate is the checksum that depicts the computing power that is needed for Bitcoin verification of blocks. China alone commands at least 66% of the total world hash rate; thus, some of the largest mining firms are located here. This rate is favored by the low costs of electricity and human resources and accessibility to hardware in China.
The online transaction of information and money prompted these nations to adopt blockchain that assures security against hackers and fraudsters. Even developing Asian countries like the Philippines have been proactive in the adoption of blockchain. 10% of Filipino adults embraced cryptocurrency by 2019. A failed banking service was one of the major driving forces behind the Philippines ' preference for digital money.
Mitigating Financial Systems Instability
Furthermore, Asian nations have also shown greater interest in different applications of blockchain and crypto technologies. It is no surprise that over 30% of convenience stores in some Asian countries already accept cryptocurrency, dealing in utility tokens and altcoins. The average convenience stores are allowed access to globally high-performing markets, giving them unlimited choices in their nations’ products and equities markets. It is only a matter of time before the region completes adopts the crypto technology. Digital adoption makes it easier for the faster growth of investments in crypto assets, given the region is already accustomed to digital payments.
According to a report, 49% of urban consumers in Southeast Asia account for the unbanked population that uses e-wallets. This number is estimated to reach 84% by 2025, thought to be inspired by the onset of COVID-19 that influenced home delivery services and digital payments. The huge unbanked population creates an opportunity for the adoption of blockchain as a means of payment.
Asian Region Leads In Blockchain
According to this analysis, data shows that East Asia now leads the cryptocurrency world by a large transaction volume. By September 2020, East Asia accounted for $107 billion of the crypto value of receipt and $108 billion sent with only 1.6% and 0.7% illicit shares, respectively. The total value of sent and received shares amounted to 31%.
In general, 21% and 20 % of Vietnamese and Filipinos respectively attested to having used digital currency in the previous year, signifying the rapid growth of the acceptance of cryptocurrency in the Southeast Asian region. The numbers are subject to development if the central bank of Vietnam approves of crypto assets.
The Potential Of Cryptocurrency On The Indian Economy
The flaws of traditional banking institutions are the top reasons for most countries turning to cryptocurrency. Countries with a population of over a billion people strive to achieve the vision of monetary access. The lenience of the Indian government to permit companies and individuals to own digital assets and accept blockchains as modes of payment reside in the fright of losing control of the capital account and money laundering. This fear threatened illicit or underground transactions despite the country being a potential hub for the adoption of Bitcoin. Adopting Bitcoin will be a lot easier since a majority of its population is technology literate.
The country, by 3rd March, held a $1.5 million worth of LocalBitcoins volume despite the still standing ban, according to data, showing the need for permission to own digital assets by institutions as a method of payment. It also portrays that the country is ready and desperate for a decentralized technology that allows them individual and monetary freedom and access. The reluctance recently dwindled, and the ban on cryptocurrencies in India has been lifted to enable companies to trade in crypto as of 1st April 2021, with a promise of lenient government regulation.
It is fair to say that the approval of crypto in Asian nations creates opportunities for their populations to store their wealth securely while creating more job openings in the technological and marketing fields. The potential of the Asian developing countries will be realized and enable the financial inclusivity of their citizens. For instance, India adopting crypto will dictate an increment in their per capita income from their average $2,000. For these reasons, the rates at which crypto has been adopted in Asian nations are pretty significant compared to other regions. Henceforth, the adoption of crypto should be considered not only in Asian nations but also in countries willing to achieve a brighter economic future. The rising adoption should not leave any country behind.
XanPool: Cryptocurrency Payment Gateway for Asian Countries
To facilitate the growing adoption of digital assets in several asian countries, XanPool offers a cryptocurrency payment gateway for instant buy and sell of digital currencies. It also enables businesses to integrate crypto gateways into their existing infrastructure and provide services to buy or sell leading cryptocurrency assets in a non-custodial manner.