Feel strongly about these letters, or any other aspects of the news? Share your views by emailing us your Letter to the Editor at letters@scmp.com or filling in this Google form. Submissions should not exceed 400 words, and must include your full name and address, plus a phone number for verification Asia stands at a crossroads in the evolution of digital finance. As stablecoin adoption accelerates worldwide, the region’s unique strengths and demand for practical financial solutions position it to shape the future of digital money.
The Asia-Pacific’s cryptocurrency adoption rate of 22 per cent far surpasses the global average of 7.8 per cent, according to a study commissioned by CoinDesk. The region also dominates remittances, hosting four of the world’s top five recipients among low and middle-income countries: India, China, the Philippines and Pakistan.
For many in the region, stablecoins – cryptocurrencies pegged to a particular reserve asset, such as the US dollar – offer efficient cross-border payment and a shield against economic volatility. In the past year, transactions worth US$33 trillion have been processed in stablecoins, nearly 20 times the volume of PayPal and almost triple that of Visa, and quickly approaching automated clearing house level, according to venture capital firm a16z.
Policy momentum is building. Hong Kong
passed the Stablecoins Bill last month, establishing a comprehensive licensing regime for issuers. South Korea has moved quickly to deliver on President Lee Jae-myung’s campaign pledge by proposing the Digital Asset Basic Act to allow local companies to issue stablecoins under regulatory oversight. Japan saw the launch of its first approved dollar stablecoin in March, and the country’s second-largest banking group, Sumitomo Mitsui Financial Group, is exploring the issuance of its own stablecoin. Taiwan is also laying the groundwork for regulation.
Globally, stablecoins are going mainstream. Circle’s blockbuster
initial public offering on the New York Stock Exchange and Societe Generale’s launch of the first major bank-issued, dollar-pegged stablecoin underscore growing institutional demand. While the United States and European Union are advancing their own stablecoin regulations, Asia’s proactive stance could tip the balance of digital finance leadership eastward.
