APAC is “uniquely positioned” to lead the next phase of global cryptocurrency growth, according to a survey conducted last month by Protocol Theory on behalf of CoinDesk.
This is just a preview of the insights available in CoinDesk’s latest report, Driven by Demand: The People-Powered Crypto Movement in APAC. Download the report today for even more exclusive findings.
The region already boasts a higher adoption rate than its neighbors at 24% versus a worldwide average of 7.8%. The report found this is driven by a range of factors including rising internet penetration, evolving regulatory environments, speculative interest, practical utility, growing understanding, and a belief in crypto’s future potential.
Surveying 4,267 people across Australia, China, Hong Kong, India, Japan, Philippines, Singapore, South Korea, Thailand, and the UAE, it found that 50% of adults in the region are somewhat or very positive toward crypto – despite a regional adoption rate of less than half that.
“This highlights enormous potential for future growth,” the report’s authors wrote.
A further 27% held neutral views on crypto and 24% said they remained skeptical of its value. But positive sentiment is growing, with 50% feeling more positive about crypto than they did a year ago. “This upswing in sentiment might be influenced by several factors, including Bitcoin’s recent strong performance and an absence of any notable, recent scandals,” the report noted.
“However, sentiment can be fickle, so there’s an urgency for market players to responsibly capitalize on these favorable conditions.”
Financial Transformation
More than six out of ten adults in the region believe that digital assets will play a significant role in the future of global finance and investment, according to the survey.
As the region undergoes a financial transformation coupled with fast development in emerging markets, the report noted a grassroots-level interest and embrace of crypto. Over half of adults think crypto will be used for everyday purposes, despite crypto not being legal tender in most countries in the region. “This optimism suggests a sense of inevitability about crypto’s role in daily life,” the report said.
It also states that further adoption will be driven by practical benefits. A total of 29% of respondents said that 29% value crypto for the ability to make payments within their country, 27% for cross-border transactions and 30% for access to financial services-though the report does not state what proportion of respondents have used crypto for these purposes.
Nevertheless, it states that these motivations “underscore a pragmatic approach to crypto adoption, one based on tangible benefits and real-world applications.”
Emerging Markets
The report also reported higher interest and adoption in emerging markets compared to more established financial jurisdictions such as Japan and Australia. Despite the two’s relatively favorable crypto regulation and infrastructure, actual adoption remains lower compared to other areas due to a comparatively weaker demand.
“Conversely, places like the Philippines and the UAE not only have effective enablers in place to support crypto adoption, but also strong underlying demand,” the report said. “[This results] in some of the highest crypto adoption rates in not just APAC, but the world.”