Markets Daily Crypto Roundup: Crypto Update | What's Driving Crypto Growth in APAC?
Host: CoinDesk
Release Date: January 27, 2025
In this episode of Markets Daily Crypto Roundup, CoinDesk delves into the burgeoning cryptocurrency landscape in the Asia-Pacific (APAC) region. With insights drawn from the recently commissioned report titled "People Powered Crypto Movement in APAC" by Protocol Theory, host Alistair Rennie engages in an enlightening discussion about the factors propelling crypto growth in APAC, contrasting these dynamics with those observed in North America.
Key Findings of the "People Powered Crypto Movement in APAC" Report
Alistair Rennie unveils several surprising insights from the report, highlighting the unique drivers of crypto adoption in APAC.
1. Adoption Driven by Belief in Crypto's Future
Contrary to industry expectations, crypto adoption in APAC isn't primarily fueled by institutional investments or regulatory frameworks. Instead, it's underpinned by a profound belief in the future of cryptocurrencies.
Alistair Rennie [01:08]: "Adoption in APAC is not being driven by a lot of the things that we maybe focus on a lot in the industry, things like institutional investment, regulation, even the tech itself. And some of our core narratives is being driven by these underlying beliefs in the future of crypto."
This belief manifests in two significant ways:
- Future of Investment: A substantial portion of the population views crypto as a pivotal component of future investment strategies.
- Everyday Payments: Approximately 41% believe that cryptocurrencies will become a staple for everyday transactions.
2. Emerging Markets Leading the Charge
The report reveals that emerging economies within APAC, such as Thailand, India, and the Philippines, are at the forefront of crypto adoption, surpassing more developed markets like Japan, Singapore, and Hong Kong.
Alistair Rennie [01:08]: "The second big surprise was the extent to which adoption is being led by emerging markets, countries like Thailand, India, Philippines, compared to developed markets like Japan and Singapore and Hong Kong."
3. Significant Unmet Demand for Crypto
There exists a substantial gap between the number of individuals interested in cryptocurrencies and those who currently hold them. This unmet demand indicates a fertile ground for future growth.
Alistair Rennie [01:08]: "The amount of people who want crypto who are actively interested in it or passively interested in it, as we say, far exceeds the amount of people who currently have it. So even though adoption is very healthy in APAC is poised for some really significant growth."
Contrasting APAC with North American Crypto Adoption
When juxtaposed with North America, APAC exhibits distinct differences in crypto adoption patterns.
Appetite for Technology vs. Appetite for Risk
APAC's emerging markets demonstrate a high appetite for embracing new technologies, driven by tangible needs, rather than the pursuit of high-risk investments often associated with crypto in North America.
Alistair Rennie [07:23]: "In emerging markets, there's a much bigger appetite for tech... They're just more likely to embrace new tech."
Financial Optimism and Debt Levels
Emerging APAC markets display greater financial optimism and lower personal debt compared to developed markets like the U.S., where higher debt burdens dampen the enthusiasm for crypto investments.
Alistair Rennie [02:32]: "In developed markets, including America, people's optimism financially is a lot lower... The amount of debt per person in developed markets is like orders of magnitudes higher."
Utilization of Crypto for Everyday Problems
In emerging APAC markets, cryptocurrencies are leveraged to address everyday financial challenges such as international remittances and payments, unlike in North America where the narrative often centers around speculative investments.
Alistair Rennie [07:23]: "There's a much higher proportion of people using crypto for payments. There's a much higher proportion of people using it for remittances."
The Role of Belief in Shaping Crypto's Future
A core revelation of the report is the collective belief among APAC populations that crypto will play a significant role in future financial systems.
Alistair Rennie [04:14]: "People say, yes, we can make money out of crypto as an investment, the 2 second most powerful drivers are, is this belief in crypto. There are two. There's belief in crypto and its role in the future of investment, and there is a belief that crypto is going to be used for everyday payments."
This pervasive belief has enabled crypto to thrive despite regulatory uncertainties, transforming it from a mere trend into a movement.
Alistair Rennie [06:46]: "When millions of people are united in this belief in something better, it's no longer a trend, right. It becomes a movement."
Implications for the Global Crypto Landscape
The insights from the APAC region offer valuable lessons for the global crypto community, emphasizing the importance of addressing real-world problems and fostering decentralized adoption.
Alistair Rennie [09:30]: "It's the people who will decentralize those protocols that's critical for the value of the networks that we build. So we need to talk to them, we need to listen to them, and we need to build for them."
Conclusion and Takeaways
The "People Powered Crypto Movement in APAC" report underscores the region's unique position in the global crypto ecosystem. Driven by a collective belief in the potential of cryptocurrencies and propelled by emerging markets' needs, APAC stands as a testament to how crypto can transcend traditional financial boundaries.
For those interested in exploring these dynamics further, Consensus Hong Kong offers an in-depth look into the progress being made in the Asia-Pacific region.
This summary encapsulates the key discussions and insights from the CoinDesk podcast episode "Crypto Update | What's Driving Crypto Growth in APAC?" released on January 27, 2025. For a comprehensive understanding, listening to the full episode is recommended.