**Crypto and Stablecoins Gain Ground in Eastern Asia**
Eastern Asia is witnessing a surge in cryptocurrency and stablecoin adoption, becoming the sixth-largest crypto economy in 2024. According to a Chainalysis report, the region accounted for over 8.9% of the global cryptocurrency value received between June 2024 and July 2023.
**Key Drivers:**
- **Fiat Devaluation:** Countries with high inflation and devaluing fiat currencies are turning to stablecoins for their lower barriers to entry and ease of use.
- **Remittance Costs:** Traditional bank transfers for cross-border transactions are expensive, averaging 7.34% in fees. Stablecoins offer a cheaper alternative.
**Institutional Influence:**
- The majority of crypto activity in Eastern Asia is driven by institutional and professional investors.
- Institutional investors prefer decentralized exchanges (DEXs) for their arbitrage opportunities, while professional investors lean towards centralized exchanges (CEXs).
**Hong Kong's Crypto Hub Ambitions:**
- Hong Kong is making strides to become a global crypto hub, experiencing an 85.6% growth in crypto adoption.
- Stablecoins play a significant role, making up over 40% of the total value received in the region.
- Regulatory developments, including a new stablecoin licensing regime, are shaping the landscape.
**Future Outlook:**
- With growing stablecoin usage, regulatory oversight is expected to increase.
- Potential risks include new scam models, but the focus remains on the revolutionary potential of stablecoins.
Stay tuned as Eastern Asia continues to evolve as a pivotal player in the global crypto economy.