Why Asia Is Crazy About Blockchain

Quite a few commentators have noted that Asian countries have taken to cryptocurrency in a big way.

Considering that Asia is quick to adopt innovative technologies, the local obsession with cryptocurrency should surprise few.

For a long time, rapid technological adoption has driven economic development in Asia.

The Unique Benefits of Blockchain

The idea of a digital currency is not new. However, cryptocurrency utilizes a relatively new digital technology: blockchain.

A blockchain is an extremely secure, decentralized ledger. This ledger stores information in encrypted form. Because the blockchain isn’t stored in one central location, it is virtually impossible for anyone to falsify entries.

Uniquely, the global network of crypto users collectively verify each new transaction. Every new transaction adds to the security of the whole. Without doubt, blockchain has made digital currency more practical than ever.

Why Cryptocurrency Is Incredibly Popular Throughout Asia

In countries with unstable currencies, cryptocurrencies provide a measure of stability and security.

Even in places where the national currency is relatively stable, cryptocurrency can help people keep their currency safe and private. Crypto is an unregulated, decentralized currency.

This means that crypto is safe from manipulation from governments. While several national governments have banned crypto, totally enforcing such a ban is close to impossible.

Crypto Attitudes Are Rapidly Changing

It took a while for major financial institutions to take cryptocurrency seriously. For example, Goldman Sachs (GS) had an anti-crypto attitude for quite a long time.

In May 2021, GS finally changed their official position on crypto, declaring that cryptocurrencies are viable financial assets. This is representative of a broader sea change in the world of traditional finance.

At last, cryptocurrencies like Bitcoin are receiving the attention they deserve.

Crypto is so popular in Asia that Mastercard has launched crypto-powered Mastercards for the region. In tech-savvy Singapore, an increasing number of businesses are accepting payment in crypto.

Thailand is another hot spot for crypto adoption and crypto-related entrepreneurship. Thailand’s premiere bank just gained a controlling stake in Bitkub online, a major local crypto exchange company.

Challenges for the Crypto Industry in Asia

Of course, things aren’t rosy for crypto investors in all parts of Asia. For years now, China has banned all crypto activity.

The ban is officially related to concerns about money laundering and criminal activity. However, more cynical observers believe that this ban has more to do with China’s desire to promote its new digital yuan.

India went so far as to ban all cryptocurrencies back in 2018. By 2018, that ban had been overturned by the Indian Supreme Court.

Though India has plans to tax and regulate crypto, Indian crypto enthusiasts are still seeing better times. According to Mastercard Asia Pacific, Asia is adopting digital payments faster than any other continent.

This relates to the fact that Asia has a huge population of cross-border consumers. Whether they are crossing borders physically or digitally, Asian consumers are increasingly comfortable operating in an international framework.

This should drive continued development of the Asian cryptocurrency industry for many years to come.