What’s Next for the Cryptocurrency/Blockchain Industry? Look to Asia

Since the meteoric rise and fall of cryptocurrency prices in late 2017, mainstream interest in cryptocurrencies seems to be falling. However, fundamentals in the cryptocurrency industry are going from strength to strength. With that said, many speculators are left wondering as to where the industry is heading next. Despite Bitcoin now getting a foothold in the mainstream financial world as “gold 2.0”, the total cryptocurrency market remains highly speculative. With that said, many blockchain-based applications are currently being built behind closed doors.

While technology adoption can be slow to come to fruition in the US and Europe, Southeast Asia are quietly embracing and implementing blockchain technology. With a high focus on mobile technology and digital payment solutions (such as Alipay), Asia is the perfect breeding ground for the cryptocurrency revolution. So, how do we know what the future holds for real-world blockchain applications? I invite you to look at what’s happening in Asia, it may surprise you.

All eyes on Asia

It’s no secret that Asia has always had a keen interest in emerging technologies, this includes: computing, VR, 5G, robotics, AI, IoT, mobile payments, and now blockchain! In fact, China has vowed that blockchain technology is a key part of their five-year plan. On the retail investor side, popularity of cryptocurrencies is also much higher in Asia; it is estimated that one of three South Koreans has used cryptocurrency in some capacity.

These advancements in technology don’t go unnoticed, with many well-respected US investors now turning their attention to Asia’s latest technology markets, including blockchain and AI. With that said, it can be a smart idea to look to the Asian communities to understand what the future of blockchain will involve. We can also look at the Asian financial markets to gain an understanding of where cryptocurrency prices are heading next.

Jim Breyer and Tim Draper are just two of many investors that are active in Asian technology markets, with both investing into Chinese cryptocurrency projects, like VeChain Thor.

Industry shake-up

If you’re not new to the blockchain space, you may already be aware of the benefits that the technology will bring to nearly every industry.

Gaming — One space that is seeing an introduction to blockchain and cryptocurrencies is the gaming sector, especially within the booming eSports sector. Asia has one of the biggest gaming communities on the planet, with eSports getting more and more popular. Like traditional sports tournaments, thousands of eSports fans fill stadiums to watch their favourite teams play. If you’re a gamer, you may already have experience dealing with virtual currencies with in-game functionality. With the onset of gaming-specific blockchain projects, we are seeing a shift to a decentralized era of gaming, one where players and streamers can earn tokens for their game time. One such blockchain platform is Plair (PLA); a gaming ecosystem created for gamers and gaming fans, rewarding them for playing, creating content, viewing, and social interaction.

Supply chain — One of the most obvious industries that can take advantage of blockchain technology. A prime example of a project concentrating on the supply chain industry is the public blockchain platform, VeChain. This BAAS platform allows individuals to track the complete lifecycle of each product, from food to luxury goods. Perhaps the most notable use-case is the drug tractability solution; an example of how blockchain technology can save lives by ensuring that all vaccine records are immutable and permanent.

Smart cities

Coming to a city near you! A smart city utilizes interconnected communication technologies (IoT) to automate and increase the efficiency of traffic, public services, and more.

Digital technologies are becoming a key part of economic progress, and blockchain is certainly playing its part. This smart city revolution is largely being led by China, with hundreds of smart city projects on the horizon, including: Beijing, Shanghai, Yinchuan, and Guangzhou. The country’s digitalization strategy states: “The internet, cloud computing, large data, artificial intelligence, machine learning, blockchain… will drive the evolution of everything — digital, network and intelligent services will be everywhere”.

A Chinese city that is already utilizing smart technologies is Yinchuan, the capital of Ningxia province. Yinchuan takes advantage of big data technology to gather information about each citizen, in an attempt to improve everyone’s life for the better. In fact, your face is linked to your bank accounts, meaning your face literally acts as your own credit card! On buses, facial recognition software has replaced the fare box, meaning passenger on-boarding is a quick and simple process. So far so good, Yinchuan will serve as the blueprint smart city for China.

Banking the unbanked

It may be surprising, but only 27% of the entire Southeast Asian population owns a bank account. So, what’s the solution? Well, blockchain and digital currencies. The new asset class allows all mobile owners to effectively manage their own funds, much like a bank account. In fact, Asia accounts for over half of the world’s mobile payments, making it the perfect area for real-world cryptocurrency payment adoption.

The great news is that many blockchain projects are concentrating on ‘banking the unbanked’ and making it their highest priority. One such platform is OmiseGo, a cryptocurrency project that enables financial inclusion and interoperability through the public, decentralized OMG network.

ICO’s and regulation

ICO’s have shown that we don’t need to follow the traditional fundraising path; entrepreneurs can now raise capital through token assurance, not by selling shares. The process of an ICO allows global participation and promotes community spirit. However, the cryptocurrency price slump has left a bad taste in the mouth of many retail investors, with many now thinking twice before parting with their cash. But this doesn’t mean the ICO era is over. In reality, it’s only just beginning.

Singapore and Thailand are just two examples of countries that are at the forefront of positive ICO regulation. Thailand recently launched a regulatory framework for ICO’s, meaning if you want to start an ICO then you must first be approved by Thailand’s Securities and Exchange Commission (SEC). Similar events are happening in Singapore, where they’re also looking to create an approved platform for tokenized securities. These are just two examples of legal frameworks being built for ICO’s, as Asia sets up to become the world’s hub for blockchain activity.

Recent news from China has lead many speculators to believe that China’s crackdown on cryptocurrency won’t last for long. If cryptocurrency is to have a massive impact on fintech, like we believe it will, then the second-largest economy in the world cannot afford to miss out. Impressively, South Korea recently allocated $4.4 billion towards new technologies, including blockchain. At the same time, Thailand’s positive stance on cryptocurrencies is attracting blockchain projects and enterprises to the region. Overall, the flurry of positive governmental actions from some Asian countries is allowing the blockchain industry to thrive.

Conclusion

While not being the only continent to support cryptocurrency, Asia is clearly a dominant force in a decentralized future with smart cities, a new way to bank, self-data ownership, improved payment methods, and overall improved efficiency in a wide variety of industries. One thing is for sure, while blockchain technology is still in its early stages, Asia looks to play a major role in increasing blockchain usability.