Crypto investments in Southeast Asia are set to increase 424% in 2021, with Vietnam ranks third in FinTech financing
Crypto investments in Southeast Asia are set to increase 424% in 2021, with Vietnam ranks third in FinTech financing. As the digital age continues to unfold at breakneck speed, central banks and private banks around the world are experimenting with technology to facilitate faster, smoother, and safer economic transactions. In the Association of Southeast Asian Nations (ASEAN), these changes look promising.
Report FinTech in ASEAN 2021 by UOB, PwC Singapore and the Singaporean crypto company FinTech Association (SFA) have come up with some statistics to back this up. Total investment in fintech companies hit an all-time high of $ 3.5 billion in the first nine months of 2021. That is more than three times as much as in 2020 and 424% more than in 2019.
To be clear, investments in technology and crypto companies have risen sharply, 6x and 5x, respectively.
At the same time, the crypto segment has overtaken other credit solutions (e.g. peer-to-peer credit platforms) from the top three positions for the first time in 6 years.
Singapore in particular leads the number of top FinTech financings in ASEAN this year, accounting for 44% of the total. In second place are Indonesia and Synthetic Team in third place with 11%.
The source: uobgroup
CBDC: NSThe next logical step?
In the digital currency space, nearly 9 in 10 surveys of more than 3,000 respondents were optimistic about digital assets. You are already using digital currencies or are ready to use digital currencies in the future. However, only 14% of the participants actually use digital currencies. This shows that the cryptocurrency still has a long way to go to become widespread in the mainstream market.
However, the majority of respondents (61%) look forward to using a central bank digital currency (CBDC).
In our country alone, 33% of respondents are willing to use it when it is available, while 46% are considering using it. The rate of non-use is relatively low at only 8%.
The source: uobgroup
Based on these findings, the report comes to the following conclusion:
“Most people still like to wait, but are encouraged by the growing adoption of reputable companies and regulated crypto exchanges.”
However, this research continues to focus on the tremendous potential of the cryptocurrency sector as well as the blockchain community as a whole. Tan Yinglan, founding executive partner of Insignia Ventures Partners, was similarly optimistic.
“We see fintech regulations evolve in ASEAN … towards the creation of sandboxes and frameworks for emerging infrastructures such as decentralized technology (e.g. blockchain) as money-based platforms. Electronics and blockchain startups raise more capital and grow with user interest in decentralized funding. “
Indeed, ASEAN countries have been actively researching CBDCs for integration into their financial systems. There are currently other research countries in this group of “developing countries”.
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