Will the Asia Pacific region become the center for blockchain innovation in the whole world?
Based on the latest research, the financial service organizations in the Asia Pacific region perceive blockchain as revolutionary. Blockchain technology meticulously improves methods, buildup conjoint efforts while dealing with security and lag problems.
Asia Pacific region unites
The conducted research involved 482 senior executives from the banking and financial services sector. The participating countries include Australia, China, Japan, and Singapore. The goal was to give insights on how the financial industry will be able to prep for a future that revolves around blockchain technology’s distributed ledger. It is expected to drive enterprise-grade, transactional applications.
Promising future for the Asia Pacific region blockchain market
According to the Global Market Insights report, the blockchain market in the Asia Pacific region is set to get bigger by an estimated 87% for the next 6 years.
Here are some of the reasons why the Asia Pacific region is ready for blockchain adoption:
Billion blockchain subscribers. One principal reason for the region’s blockchain adoption is the size of Asia’s middle class which is expected to soar to 3.5 billion by 2030. The interest in state-of-the-art technology can be credited to the young and inquisitive population. There is a 60% concentration of the world’s youth in the Asia Pacific region.
Due to the consumer market’s volume and characteristics, cryptocurrencies are now massive in the region. Over half of cryptocurrency trading transpires on Asia-based exchanges. Japan accounts for half of bitcoin’s everyday trade volume. More than a third of the volume is attributed to South Korean employers who are also investors, pay their workers with cryptocurrencies. Even with strict crypto regulations, China has continued to file for more crypto and blockchain patents.
Introduction by the government. The government’s strategies and recommendations help encourage demand for blockchain technology in the Asia Pacific region. Administrations throughout the region are finding ways to enforce blockchain in the public sector. Asian blockchain firms and exchanges noted that Asian regulators are more enthusiastic to work with enterprises to initiate functional guidelines and guarantee company compliance.
In Thailand, for example, the government positively accepted cryptocurrency projects. Thai regulators established cryptocurrency licenses in 2018 to enable exchanges and ICOs. The clear and specific guidelines have drawn foreign blockchain businesses. In addition, the government keeps account of its own central bank’s digital currency.
In 2016, the Monetary Authority of Singapore (MAS) proposed a regulatory ‘sandbox’. It supported blockchain-related businesses that do research with innovative products. These products are protected from risks of failure.
Singapore’s Central Bank also worked with an association of banks and technology companies on Project Ubin. The said project aimed to discover the use of blockchain for both payments and securities and positioning the Singapore dollar on the blockchain.
The South Korean government just spent $880 million on blockchain development for the year 2019. Hong Kong had funded research on how blockchain can possibly make its financial services sector safer and more productive. The Tokyo Metropolitan Government Accelerator Program hosted the “Blockchain Business Camp Tokyo” last March 2018 to encourage private investment. Australia has capitalized $1.6 million in a blockchain initiative purposed to make its leading sugar manufacture more aggressive.
Rapid growth in blockchain-related job openings. Recruitment firm Robert Walters noticed the 50% rise in the number of jobs associated with blockchain in Asia since 2017. Interests in blockchain-related positions continue to soar and are expected to grow more in the coming years.
The national governments’ simultaneous exploration of blockchain technology continues as it discovers more beneficial use-cases preferably in the supply chain. While being implemented in public institutions, it also helps motivate advancement in the private sector.