While going through the internet, one is likely to find videos of young Asians displaying some extraordinary skills such as playing complex pieces of music or cracking complex computer codes. Even Hollywood, in movies featuring Asians, usually showcases Asians as skillful in various technologies and art forms. These attributes are as a result of the region keeping up to date with the latest in all industries while training their upcoming generation’s right from a tender age.
Most Asians, therefore, grow up learning and understanding skills that become part of them. Consequently, it becomes easy for them to be innovative in various industries across the board. Right from engineering to software development, Asians have a knack for development.
Their hard-working culture also helps to keep them ever productive thus they can come up with innovations and quickly put their thoughts into actions by creating the various products and providing services they had envisioned. These same factors that have allowed growth and development specifically in South Asia are likely to be replicated in the new wave of blockchain technology thus creating a scenario where South Asia becomes the next crypto hub.
Crypto Growth in South Asia
Cryptocurrency success comes from the innovation that is blockchain technology. Without it, cryptocurrencies would not be as popular as they are today. Cryptocurrencies are known to have made traders, especially in the west, rich. The crypto boom period saw cryptocurrency prices soar and traders make huge profits after accumulating cryptocurrencies for quite a while. During this period, the South Asian crypto scene was also growing, receiving its inspiration from the success it was witnessing in western nations.
South Asia is currently employing blockchain and cryptocurrencies to almost every aspect of their daily lives. Apart from profit-making through the trading of crypto, some life-changing solutions have been implemented as a result of cryptocurrencies. For example, DApact in Southeast Asia, specifically Cambodia, is helping small businesses stay afloat or grow their businesses through the provision of microloans. The service may seem similar to loan services that banks offer, however, DApact have significantly lower interest rates than any loan service provider in the region. The low-interest rates are made possible through the use of cryptocurrency. Each digital token has a unique DApact code which is recorded and traced whenever loans are given out. The need for manual checking is therefore eliminated through this method thus interest rates end up being lower due to the reduced operational costs.
The innovative applications of cryptocurrency and blockchain are reinforcing the deepening roots of cryptocurrency in the South Asian region.
Growth Factors in South Asia
There are some critical factors that are enabling the growth and possible cementing of South Asia as the next crypto hub in the world’s crypto space. They include,
- Keeping up with crypto trends and innovations
Part of staying relevant is keeping up with the latest in trends and changes in the crypto world. In the past years, cryptocurrency exchanges have been an essential part of any forward-thinking crypto region. South Asia has not been left behind. In the Philippines for example, the platform Coins reached a milestone of 5 million users after amassing 4 million users in 2018. This is a positive indicator of a ready market for crypto services and products in the region. Coins then went ahead and marketed their services and products aggressively in Malaysia and Thailand to continue establishing their presence in the South Asia region. It is likely that the crypto community in this area is observing the latest trends in other crypto regions thus when platforms such as Coins get established, they are quickly picked up by the crypto community.
Productive partnerships have also been observed in other markets and are being implemented in the South Asia market as well. For example, still in the Philippines, a large portion of its population is unbanked and therefore relies on remittance services to receive their payments. Coin’s team announced earlier on in 2018 that they had started a partnership with Palawan, a remittance service in the Philippines. Coins stated that the connection helped streamline the process of gaining mainstream adoption of cryptocurrency in the local market. This is according to the news outlet CCN.
- Confidence in technology and making the first step
It is usually easier to get reactions from the population whenever negative news about technology is mentioned such as artificial intelligence taking over various employment opportunities around the globe. This is mostly seen in Western markets and some African markets. However, the Asian markets including the South Asia market have a different view of technology. They try to look at the positive out of the improvements and enhancements that come with new technology.
In South Korea for example, 1 in 3 South Koreans either own or get paid in Cryptocurrency. Mindboggling! This is likely to be replicated across the Asian market as Asia is known to be bolder when it comes to technology. Tech startups in the region are in record numbers especially in areas such as India hence the positive reception of tech and supporting innovations in the region. The same enthusiasm that has been seen in tech is being observed with cryptocurrency and blockchain. It, therefore, comes as no surprise that South Asia may be the next leader in the crypto world due to the confidence in tech that is exuded in the region.
If South Asia continues with the trend of confidence and positivity of adopting new technologies for a brighter future, then South Asia will likely be a crypto leader in years to come. All that is left to be done is the assessment of the South Asian market to determine the type of platforms and solution needed. This will advise innovators on the line of thinking that they should take and will give potential users of these platforms even more confidence knowing that these products and services are there to solve every day, real-world problems.
- Making future investments
The South Asia market has a population that could inherently support nearly all startups that are in the region. With over 1.5 billion people, investing in the right projects could help South Asia dictate some of the movements in the crypto world.
Assessment of the market to determine viable products and services is an essential undertaking that the governments and other concerned stakeholders should consider. There is a ready market in the region that is always willing to support homegrown products and services thus determining the right ones will help accelerate the process of adoption of crypto-related products and services.
Investing more funds in the research and development automatically encourages more young innovators to embrace their passion as they are assured of research funds. It also helps mature the market through appropriate products and improvement on previously released products and services. Offering grants to universities that are crypto and blockchain oriented will also help reinforce the importance of crypto in the South Asian economy.
Meaningful partnerships between the government and the private sector to support the development of crypto-related technology, products and services will also help grow the South Asia market to the crypto hub it can become. The government holds much power regarding the laws and regulations it passes. The private sector can help advise the governments on the crypto civil laws that can help the South Asia crypto scene grow. Governments can also partner with the private sector to offer monetary support for research and development teams in the crypto space in South Asia.
Being that the current generation is technologically savvy, it would only be wise to equip them with the tools to continue developing the technology that has helped improve the quality of life so much. Teaching the basics of crypto right from school would create an atmosphere of acceptance for crypto-related products and services. Growing up understanding the pros and cons of crypto would create a generation that would want to improve on the challenges of crypto and offer even more innovative ideas. The South Asian market has the tools and population to make such a long-term investment in the crypto space.
These three factors are among the main factors that are likely to drive South Asia into being the next Crypto hub of the world. If South Asia plays its cards right, it could easily lead the world in crypto innovations and usage.
South Asia has the population, the drive and the opportunity to build a crypto hub that will last way into the future. However, this will only work if these three factors are relied upon through the support of all the relevant crypto players in the region.