Lately, the use of cryptocurrencies has significantly increased globally, igniting curiosity among countless individuals.
In simpler terms, the adoption of cryptocurrencies has been rapidly increasing in Southeast Asia. This is due to the lenient regulations towards cryptocurrency markets, expanding digital connectivity, and limited access to traditional banking services, making Southeast Asia an ideal place for the growth of cryptocurrencies.
Based on Statista’s figures, the cryptocurrency market in Southeast Asia is expected to expand to $1.79 billion by 2024, growing at an average annual rate of 8.75% over the next four years.
According to a recent analysis by Chainalysis, Thailand, the Philippines, and Vietnam have emerged as the top countries in their region and globally for cryptocurrency usage.
Claudio Cossio, Meta Pool’s founder, explained that in Asia, staking tokens to earn rewards is still a new concept and quite straightforward for securing proof-of-stake blockchain protocols. However, there’s a significant growth predicted within the next 3 years, particularly in Southeast Asia, with Layer 2 solutions leading the charge.
What are the main factors behind the crypto adoption in Southeast Asia?
There are various factors behind the growth of cryptocurrency adoption in Southeast Asia.:
Technology and Innovation
In simpler terms, countries such as Singapore and Thailand have embraced progressive attitudes towards the adoption of innovative technologies like blockchain and cryptocurrencies. These nations provide favorable conditions for the growth of related projects, ensuring a secure setting for technological advancements.
Financial Inclusion
In Southeast Asia, numerous countries have significant financial exclusion, meaning a large portion of their populations lack access to essential banking services such as having a bank account. According to a World Economic Forum report published in 2022, approximately six out of ten Southeast Asians either don’t have a bank account or are considered underbanked. Furthermore, the absence of formal financial institutions has hindered over 60% of surveyed Micro, Small and Medium Enterprises (MSMEs) from obtaining loans.
In simpler terms, cryptocurrencies have significantly contributed to overcoming financial exclusion in the area, allowing millions of individuals to participate in a fresh financial system.
Favorable Regulations
Countries in Southeast Asia are now developing more welcoming laws for the cryptocurrency sector.
In simpler terms, countries such as Hong Kong and Singapore are offering favorable legal conditions for major crypto industry figures to establish tech centers.
Crypto as a payment method
Virtual payments are being used more frequently in this area, and companies such as Grab are leading the way by adding cryptocurrency as an option for transactions, thereby boosting its usage.
In Southeast Asia, the number of individuals choosing to join the cryptocurrency market is growing, indicating a significant rise in crypto usage within the region.
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2024-04-17 11:16