Blockchain technology has reached the early majority phase; gaining traction and spreading at a speedy rate. However, it is still far from full adoption.
The blockchain market is expected to see increase up to $16 billion by 2024. Once that hits, blockchain technology definitely will change our world immensely within the next ten years. The question is, who will lead the blockchain industries?
Global Market Insight reported findings involving judgments from experts. The report stated that the Asia-Pacific region has the greatest potential to thrive in the upcoming blockchain era. The blockchain market in the region will grow by 87 percent over the next six years with surging innovation in the involved countries.
What makes Asia-Pacific so great? Here are the facts:
1. Consumer Market
Asia has a large number of consumer markets. The middle class in Asia predictably will grow to reach 3.5 billion by 2030. Moreover, they will embrace new technologies. Dominated by young people, they will most likely be an enthusiast regarding state-of-the-art technology. Underline that sixty percent of the world’s youth population can be found in the Asia Pacific. There’s a much higher percentage of consumers in Asian countries that are not only capable financially but also are early adopters of new technologies, according to a study by the Consumer Technology Association.
Digital currencies as the prevailing prototype of blockchain technologies are already huge in the region. Cryptocurrency trading is happening in Asia-Pacific countries. Today, Japan is the country that accounts for half of bitcoin’s daily trade volume. In South Korea, more than a third of salaried workers invest in digital currencies. Moreover, patents for cryptocurrencies and blockchain patents can be seen in China more than any other country despite its strict regulation on cryptocurrencies.
2. Role of Government
Global Market Insight’s report found that government initiatives and policies hold great importance in the success of blockchain technology adaptation in the region. Asia-Pacific governments are looking for ways to implement blockchain technologies in the public sector. Regulators in Asia are more eager to work with businesses to make regulations that are effective and capable of ensuring companies to be compliant.
In Thailand, the government has welcomed cryptocurrency projects, setting up licenses that permit exchanges and ICOs along with clear and explicit guidelines for blockchain companies to comply with. This regulation has attracted foreign blockchain companies.
The Monetary Authority of Singapore, on the other hand, made a regulatory sandbox in 2016 to support businesses in the blockchain sector so that they can create innovative ideas and ensure their success in avoiding failures.
Other countries like South Korea, Hong Kong, Australia, and Japan have invested a large sum of money in the blockchain. South Korea made $880 million investment in blockchain development in 2019. Meanwhile, Hong Kong funds researchers for the utilization of blockchain technology for safe and efficient financial services. Blockchain Business Camp Tokyo, on the other hand, is hosted by the Tokyo Metropolitan Government Accelerator Program to stimulate private investment, while Australia has made $1.6 million investment in a blockchain initiative to make production more competitive.
With this positive involvement by the government in public institutions and their support in the development in the private sector, it will be much easier for blockchain to penetrate the region’s population.
3. Blockchain Career Opportunities
There is an increase in jobs related to blockchain along with people who seek positions in the sector. There was a 50 percent increase in blockchain-related jobs in Asia since 2017 as observed by Robert Walters, a reputable recruitment firm.