In 22, the encryption analysis company Chainalysis listed East Asia as "the largest encryption market in the world", and 31% of cryptocurrency transactions took place in East Asia. At the same time, China alone accounted for two-thirds of the total computing power of Bitcoin.

at the same time, the survey of Fidelity Digital Assets also confirmed this statement. From December 22 to April 221, Fidelity Digital Assets surveyed 1,1 institutional investors in the United States (48), Europe (393) and Asia (299). The survey shows that the adoption rate of encrypted assets in Asia (71%) is much higher than that in Europe (56%) and the United States (33%).

in March 221, Statista conducted a survey on the holding and usage of cryptocurrencies in 74 countries around the world, and the Asian countries Vietnam and the Philippines ranked second and third respectively in the world.

But the past does not represent the preface of the future. No one can guarantee that East Asia will remain the center of the encrypted world in the future. The regulatory environment in China is still uncertain. At the same time, China's upcoming digital RMB may cause repercussions in the whole region.

In fact, compared with other parts of the world, the adoption rate of encryption in East Asia is dropping sharply. Six months ago, China's encryption activities began to decrease. Since May this year, many places in China have introduced mining and trading bans on cryptocurrencies, and major exchanges have shut down derivatives trading. Although some derivatives activities have moved to the DeFi market, the size of this part of the market is not enough to make up for the lost trading volume in the derivatives market.

When we talk about the Asian market, we will automatically focus on China. China's dominant position in the field of bitcoin mining naturally makes it a huge encryption market. However, with the tightening of regulation in China, many bitcoin miners in China have gone to sea and transferred their business to Canada, Kazakhstan, Russia and the United States.

China's digital RMB is also likely to have a significant impact on East Asia. Other Asian countries will copy the digital RMB model, and will probably restrict or suppress the crypto asset market to ensure the rapid development of their central bank, digital currency. If this happens, the center of crypto adoption will be transferred to other places. The following are some areas that will probably fill this gap.

North America

In the past 12 months, the adoption rate of encryption in the United States has been rising steadily, and traditional American banks, including Bank of JPMorgan Chase, Citibank, Goldman Sachs and State Street Bank, have all entered the encryption market.

in terms of mining, the United States was already the second largest mining country in the world long before the regulatory crackdown on mining in China in May. In September 219, China accounted for 75.53% of the total computing power of Bitcoin, but recently, this proportion has dropped to 46.4%, while the share of the United States has expanded to 16.85%.

The United States has become one of the countries with the strongest momentum in the field of encryption, with clearer policies and regulations. More and more institutional investors and retail investors have brought large-scale incremental funds to the encryption market.

At the same time, another country in North America, Canada, has also begun to innovate in the field of encryption. In February this year, Canada launched the Bitcoin ETF, which is the first encrypted exchange-traded fund in North America, and then launched the Ethereum ETF in April.

In addition, Canada is rich in hydropower resources. As more and more miners begin to seek renewable energy in the world, many people think that it is only a matter of time before Canada becomes a big mining country.

Latin America

Latin America has become a hot spot for encryption. In June this year, El Salvador issued the Bitcoin Law, announcing that Bitcoin will become the legal tender of the country.

Remittance is a pillar of Latin American economy, and the money sent home by these overseas migrant workers accounts for 23% of El Salvador's GDP. In Honduras, remittances also exceed 2% of the gross national product. In Mexico, although remittance only accounts for 3% of GDP, its total amount is quite large-US$ 42.9 billion, which is second only to China and India. Cryptographic currency and blockchain technology can provide a more effective cross-border payment method for overseas migrant workers.

At the same time, there are still many people in Latin America who don't have bank accounts, and cryptocurrency has created a low-cost financial product for these people, which can greatly promote the popularization of financial services.

El Salvador's dramatic action has also encouraged other countries in the region to develop their own encryption strategies. Paraguayan lawmakers, for example, submitted a cryptocurrency bill to Congress in July.

The local governments are not too enthusiastic about digital currency, the central bank, which means that the government is unlikely to suppress cryptocurrencies because of its competitive relationship with digital currency, the central bank. Latin American countries have a relatively open attitude towards digital currency's supervision, and many financial institutions have reached cooperation with crypto-asset companies to promote their own better operation through crypto-assets.

Venezuela ranks third among the 154 countries covered by the global cryptocurrency adoption index, which fully shows that the instability of the economic environment will promote the adoption of cryptocurrency. Venezuela's legal tender system is very fragile, easily affected by market changes, and crazy inflation broke out. When the legal tender depreciated due to inflation, more and more Venezuelans turned to cryptocurrencies to protect their savings. The same model also appeared in other countries in Latin America.

Europe

Like North America, the interest of European institutions in the encryption market is also growing. Today, nearly 8% of European institutional investors believe that encrypted assets should be part of the portfolio.

The regulatory scheme of MiCA proposed by the European Commission is under the first round of deliberation in the European Parliament, which will establish a unified European cryptoasset market, which will undoubtedly attract more large institutional investors, including hedge funds and pension funds. Due to policy concerns, these institutions have been vigilant about investing in the encryption market.

once MiCA takes effect, encryption companies authorized by any of the 27 EU countries will be able to provide services in all other EU countries, which will greatly promote the mainstream adoption of encryption assets in Europe.

Africa

In countries where the public doesn't trust legal tender, more and more young people with Internet access are turning to cryptocurrencies, which is a natural progress.

Three African countries-Kenya, Nigeria and South Africa rank among the top ten in the global cryptocurrency adoption index. Remittance is an early use case of cryptocurrency economy in these developing countries, because many countries in Africa suffer from severe currency depreciation and economic instability, which is why local residents prefer Bitcoin, because the supply of Bitcoin is fixed and it can resist inflation.

who will have the upper hand in these areas? Some people think it should be Latin America or Africa, because the demand there is urgent and there seems to be a feasible plan, but this is only their guess.

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