In the 12 months up to June 2021 the cryptocurrency market grew by 706 percent and reached a value of $572.5 billion (roughly Rs. 42,62,844 crores) in Central and Southern Asia, and Oceania (CSAO). These regions have emerged as one of the fastest growing crypto markets in the world, with Asia containing the top three countries, respectively Vietnam, India, and Pakistan that have witnessing rapid crypto expansion in a year.
India ranks second in global cryptocurrency adoption
The report, which was authored by research firm Crypto Finance, ranks Pakistan as the second country on the list. The report estimates that the South Asian country has $17.8 billion market value at the moment and that the adoption of cryptocurrency was growing at a rapid pace in the last year, with over 5,000 transactions on average and over $8 million in daily trading volumes.
Countries such as Vietnam and Indonesia share third and fourth place with $17.7 billion and $17.3 billion respectively.
Coin Square, one of the leading service providers in this industry, has been researching the growth of the crypto industry in Pakistan in the past. The research firm estimates that the number of virtual currency users has grown rapidly in Pakistan since the past year.
According to Hashchain Capital's report, it all started when Bitcoin and blockchain reached India in April 2018. The cryptocurrency market value crossed the $2 billion mark for the first time in India after there were increased investments in Blockchain technology, and the subsequent high demand for cryptocurrencies across the country. According to coindesk.com, Binance had witnessed the highest trade volume in India at its peak, and it showed up a total volume of $116.7 million across the market.
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Adoption of crypto technology by the masses remains one of the top priorities for the largest industry participants and developers.
What are the implications?
Cryptocurrencies have also proved their potential for commercial transactions on a large scale, particularly in countries such as Vietnam, where the combined value of domestic and foreign purchases reached nearly $2 billion between June 2017 and June 2018.
The report, however, warns of increased crypto-entrepreneurs' digital currency risk exposure as their activities are strongly prone to illicit or unregulated channels.
"The increasing risk and increasing adoption of unregulated digital currencies will likely challenge the traditional financial institutions as well as governments," the report read. "Moreso, cryptocurrency-related crimes will grow at a faster pace as the usage of cryptocurrencies, including bitcoins, takes place in more countries.
Why this is good, good news for Bitcoin
According to Central and Southern Asia Development Research Institute (CASIRD), the cryptocurrency market was expected to witness a growth of 255 percent. What it did is beyond expectations, and the growth is not expected to slacken down. Now, there are a number of reasons why the market saw such an exponential growth, the most important being, there is an immense potential in the emerging region, specially in India.
“The demand for digital assets and the increased reliance on information and communication technologies have given rise to the demand for cryptocurrency in the region”, said Professor Daniele Bianchi from the Malta Business School.