Throughout 2022, experts believe that the Asia-Pacific crypto market will continue to grow. To date, the Asian crypto industry has shown great resilience. Despite initial skepticism from regulators, East Asian countries are now fully on board with the crypto-friendly global zeitgeist. The East Asian public has a longstanding familiarity with digital payment systems. Whether they are working remitting funds out-country or simply shopping online, East Asian consumers have proven to be open-minded about fintech.
A recent report from the experts at Allied Market Research (AMR) has got Asian crypto watchers feeling bullish. AMR doesn’t see any end in sight to the meteoric regional growth in crypto adoption. The younger generation is proving to be particularly willing to buy crypto. Crypto provides a relatively low-cost way for people to get into investing. In the wake of the global coronavirus pandemic, Asians are looking for inclusive new ways to build up emergency nest eggs. Although bitcoin remains the dominant cryptocurrency, there are plenty of other coins that could have a major impact on the Asia-Pacific regional economy.
According to AMR, the growth of crypto is meeting a number of vital needs in developing nations. Firstly, consumers need more efficient and transparent systems for making payments. Secondly, remittance systems remain in demand throughout the developing world. Thirdly, developing nations need access to stable assets that can’t be affected by government corruption. Lack of awareness remains a problem when it comes to global crypto growth. However, crypto adoption by major financial institutions is helping to educate the public. With the spread of celebrity-endorsed NFTs, the fundamental strength of blockchain technology should become a matter of greater public discussion. In time, digital currency will likely match traditional currency in popularity.
In its report, AMR noted that the Asia-Pacific region is dominating the crypto market in several key ways. From China to Thailand and beyond, traditional financial players are adopting blockchain technology. While China has essentially banned bitcoin, it is simultaneously pushing blockchain, the technology behind most crypto. Blockchain is a distributed, decentralized ledger. The ledger doesn’t rely on any government or authority to ensure accuracy. Instead, each new transaction is authenticated by a global network of crypto miners. To add a new data block to the chain, the entire chain must be authenticated. This means that the ledger is essentially invulnerable to tampering or fraud.
Several years ago, few would have guessed that Chinese banks would be hiring blockchain experts. This is one of the most dramatic ways that traditional players are warming to new financial technologies. China is also in the process of rolling out its digital yuan. Like India, China is hoping to harness the power of digital currency while maintaining state control. Under the guiding hand of Xi Jinping, China is looking at all possible means to reduce fraud and corruption.
In 2022, the Asia-Pacific region should continue to experience unparalleled development in crypto exchanges. The region should also see continued growth in public experiments with blockchain. Though initially suspicious, governments throughout the region are realizing that blockchain can help reduce crime and aid tax enforcement.