What Currency is Used in the Asia-Pacific Region (Who Knows the Asia-Pacific Region Better?)

What currency is used in the Asia-Pacific region? Asia-Pacific financial institutions, in addition to cash, also allow the purchase of goods and services with legal tender when using various cryptocurrencies. For example, the Central Bank Digital Currency (CBDC) of China’s Hong Kong, Klaytn, a payment system in South Korea, etc. Additionally, Singapore supports Bitcoin and Ethereum as legal tender for cross-border payments.

What currency is used in the Asia-Pacific region? According to the latest report from the International Trade Organization, currently, more than 2 billion people have not conducted foreign exchange transactions. Due to frequent capital flows, a dramatic increase in remittances, and unfriendly government policies towards stablecoins, many users in the Asia-Pacific region prefer to exchange fiat currency for Bitcoin or Ethereum. (Reference to National Business Daily)

Who Knows the Asia-Pacific Region Better?

Editor’s note: This article is from BlockBeats (ID: 0xB18) and is authorized to be reproduced by Odaily Planet Daily.

In the past few months, the adoption and use of cryptocurrencies worldwide have been growing rapidly. Although the recent surge in Bitcoin prices and investors turning to other currencies like Bitcoin to find new entry points, there is still some uncertainty about the development of the digital asset market.

With more and more institutions starting to invest in the field of digital assets, the blockchain, DeFi, and other related industries in the Asia-Pacific region are booming, especially with the increasing number of application scenarios driven by blockchain technology. The “Asia-Pacific region” is the leader in the cryptocurrency market. Currently, over 100 countries have issued their own digital tokens or created local tokenized exchanges. According to the latest report published by CryptoCompare, the number of cryptocurrency projects in the Asia-Pacific region has noticeably decreased since 2019. Among them, less than one-third of countries have their own tokenized platforms in operation. However, compared to developed countries, the launch of these platforms has been relatively late. Therefore, if we look at the trading volume in Asia, it seems to be far lower than last year’s level.

For those planning to establish their tokenized platforms and attract more funds from their countries, the “Asia-Pacific region” is undoubtedly a good choice. According to data from CoinMarketCap, the global market value of cryptocurrencies increased from US$277 billion in Q2 2019 to Q1 2020 and only rose by 7% in the last quarter. In addition, as of the end of June 2022, the total number of global Bitcoin ATMs installed has exceeded 40,000.

In addition to the continuous innovation in the crypto industry, the Asia-Pacific region is also favored by numerous new technology companies, including Everledger Technologies Inc., a business-level blockchain development company under Google Cloud, IBM, Microsoft Azure, etc. The Japanese Ministry of Finance published an announcement on the registration and registration process of “Virtual Asset Service Providers” (VASPs), and the South Korean government announced its approval of ICOs. Some major economies including Singapore, Hong Kong, and Malaysia have followed suit, attempting to become leaders in the emerging cryptocurrency market. It was reported that in July 2017, the Bank of China officially established a clearing and settlement system operator specializing in cross-border payment services.

Although many people believe that stablecoin regulation issues in Asia may trigger long-term problems, such as how to effectively control risks, in reality, this viewpoint is not always accurate. For example, Gary Gensler, the chairman of the U.S. Securities and Exchange Commission, once said, “The United States needs a way to protect consumers from fraud.” On the other hand, the “legal environment in the Asia-Pacific region is very complex and strict” because it requires users to prove that they own certain assets rather than sell them to third parties.