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Why Is Cryptocurrency Gaining Ground in Asia?

December 21, 2021

While cryptocurrency is still viewed with some skepticism in advanced economies, the developing ones are accepting it more readily. Cryptocurrency is taking off in many Asian countries. The crypto activity is increasing in countries like Vietnam, China and India. Emerging economies from these countries provide a solid foundation for cryptocurrency to take hold in. There is an increasing demand for cryptocurrency gateway in online businesses. Due to an increased adoption amongst the masses, many businesses are choosing to accept it as a mode of payment.

Promises to Make a Fast Profit

One of the main reasons that crypto activity has taken off in Asia is because these currencies rise in value pretty quickly. This holds the promise of quickly gaining a profit for those who invest in them. Asian investors who recognized the promise of this new technology have gained a lot on their initial investment. Even though there is a lot of risk of its value falling suddenly, countries like Vietnam, India, Pakistan and China are the world’s leading adopters of cryptocurrency.

Favorable Opinions of Asian Governments Towards Cryptocurrencies

Most Asian governments encourage and support the growth of cryptocurrency. For example, China has accepted blockchain technology and been looking to digitize the yuan. They are not alone though. Many competing markets such as Japan and Thailand, are legitimizing the usage of cryptocurrencies. It is one of the main reasons why you see it as an online payment solution in Thailand based apps and businesses. Japan has gone one step further and has written laws which support crypto exchanges in Japan, spearheading its adoption in their economy.

Helps Investors to Put More Money in the Markets

For a developing market, a lot of gains are seen when investors invest more into the market. Cryptocurrency offers Asian investors the opportunity to invest in a big way in their country’s economy. Digital currencies help economies trade more. Hence the adoption of this technology in the early stages ensures that you have a foothold in this developing space. With the increasing adoption of blockchain technology, payments using a cryptocurrency gateway are fast gaining traction. While Vietnam and Singapore are fighting to be dominant players within this space, there are many other countries in Asia that want to get in on the action as well.

Central Banks Backing Blockchain Adoption

Many central banks are throwing their weight behind blockchain technology. Thailand has announced plans to develop an interbank pay system that is based on blockchain technology. What it does is to open up doors for an online payment solution in Thailand. This is mainly because cryptocurrency offers a safer and faster means of carrying out online transactions. This kind of acceptance creates opportunities for entrepreneurs to develop technologies that support crypto payments. With European and American investors still skeptical about cryptocurrency, it opens up this new technology to Asian players who want to remain competitive in the global markets.