Stablecoins and cryptocurrencies are gaining traction in Eastern Asian countries, replacing fiat currencies and showcasing their importance in emerging economies. In 2024, Eastern Asia became the sixth-largest crypto economy, representing over 8.9% of the global cryptocurrency value. The adoption of crypto and stablecoins is driven by nations facing fiat currency devaluation and high inflation rates. These digital assets offer a cost-effective and swift alternative to traditional bank transfers, especially for cross-border transactions, which can be costly for developing economies. Institutional investors dominate the cryptocurrency activity in the region, with decentralized exchanges (DEXs) attracting more institutional interest due to increased arbitrage opportunities. Hong Kong is emerging as a cryptocurrency hub, experiencing significant growth in digital asset activity, with stablecoins playing a crucial role. However, the rise in stablecoin usage may lead to heightened regulatory scrutiny, as seen in Hong Kong's stablecoin licensing proposal in 2024. Read more AI-generated news on: https://app.chaingpt.org/news