Emerging markets offer unique growth opportunities for cryptocurrencies and blockchain technology. In Africa, cryptocurrencies have emerged as an alternative to the traditional financial system and are being welcomed by the local market, especially for those who do not have access to banking services. Blockchain technology holds great promise as it can address issues such as traceability, managing identity and ownership disputes in the supply chain.
In Vietnam, cryptocurrencies are also rapidly capturing the hearts of young Vietnamese as the economy continues to grow and technology becomes increasingly advanced, with more and more Vietnamese turning to cryptocurrencies as a safe and secure financial option; in India and Africa, cryptocurrency use is increasing due to the lack of banking services in local financial markets and the volatility of local currencies.
In these regions, digital assets provide a safe and convenient financial solution for locals; in turn, emerging markets offer unique application scenarios and opportunities for digital asset chains.
Opportunities and Application Scenarios in Emerging Markets
- Africa
In Africa, practicality is key to the success of products, including the Web3 project. Because Africa's GDP per capita is relatively low and its financial, social and environmental infrastructure is not yet well developed, solutions for African markets must be able to solve problems or meet the needs of well-defined market scenarios, including: international payments, digital identity, traceability in the supply chain, and decentralized marketplaces.
Africa lacks traditional financial infrastructure, a deficiency that provides opportunities for new technologies such as blockchain. 57% of African cell phones are not connected, and in some African countries only 30% of adults have smartphones, and integration and gradual advancement are key in the face of these technology deficiencies.
In addition to the aforementioned poor technology infrastructure, another major issue in Africa is the lack of reliable and verifiable land ownership records, which has led to many disputes and conflicts. Currently, companies such as HouseAfrica and Seso Global use blockchain technology to create transparent and immutable records that clearly state the ownership of land.
- India
While India is also an emerging market with a rapidly growing economy, it is different from other developing economies. On the one hand, India has shown continued interest in the cryptocurrency space and a tendency to support new technologies such as Web3 and blockchain, but on the other hand, the Indian government has failed to develop and implement effective cryptocurrency regulations, creating market confusion and hindering the growth of the industry.
While India is full of contradictions when it comes to cryptocurrencies, the UAE has taken a more aggressive approach, with Dubai recently passing a virtual goods law and also establishing an industry watchdog. In addition, the UAE has introduced special visas for tech entrepreneurs, allowing them to set up businesses in the country and access resources and funding, a policy that has attracted many entrepreneurs from around the world, with Dubai expected to become an emerging tech hub in the Middle East.
However, for India, the current form is not the end all be all, as evidenced by recent NASSCOM research, India has the potential to become a thriving Web3 market due to its large talent pool and high digital technology adoption rate. Since the gap between talent supply and talent demand in India's technology sector is smaller than in other countries, this means that there is a large pool of technical talent available to work on Web3 projects.
- Vietnam
In 2018, the State Bank of Vietnam explicitly banned the use of cryptocurrencies as a means of payment, and companies that traded with cryptocurrencies were fined. However, the Prime Minister of Vietnam approved an improved legal framework, demonstrating that the Vietnamese government recognizes the importance and potential of blockchain technology and is working to establish a clear and secure regulatory framework.
This balanced approach to regulation could help promote a healthy and prosperous ecosystem and contribute to Vietnam's economic and technological development in the future.
The popularity of cryptocurrency-based gaming in Vietnam also favors the widespread adoption of cryptocurrencies, followed by DeFi, NFT and infrastructure. With more and more traditional companies turning to blockchain and integrating blockchain technology into their businesses, and Vietnamese cryptocurrency projects performing exceptionally well in raising funds, these achievements are inspiring and the future of the cryptocurrency market in Vietnam is promising.