AsiaNext Secures Market Operator License from Singapore’s MAS

Recent statements by figures well placed in the crypto space and within the Vietnamese government point to increased potential for greater adoption of XRP, the payments solution token first developed by Ripple Labs.Photo by Silver Ringvee on Unsplash‘XRP will be big in Vietnam’Yasin Mobarak is a prominent figure within the XRP community. He’s also the founder and managing member of Dizer Capital, a venture capital and private equity firm that specializes in blockchain, internet of things (IoT) and clean energy projects. On Saturday, Mobarak tweeted out: "$XRP will be big in Vietnam." While Mobarak didn’t comment further, he did include a link to an X social media post published by XRP community member Kenny Nguyen, relaying the news that Vietnamese Finance Minister Ho Duc Phoc had announced that the government is currently working with the Vietnamese Central Bank with a view towards studying and possibly implementing the use of XRP for cross border payments. Central Bank's consideration of XRPVietnam's Central Bank is actively exploring the integration of XRP for cross-border payments, both domestically and internationally. This move aligns with the region's swift adoption of XRP, driven by its promise of faster, cost-effective and secure cross-border payment services. Ripple's recent collaboration with TPB Bank, a major player in Vietnam's banking sector, is set to fortify the entire XRP ecosystem. In September 2023, SBI Remit, a financial service provider and subsidiary company of Japanese financial services conglomerate SBI Group, initiated an XRP-based remittance service covering Southeast Asian countries like the Philippines, Vietnam and Indonesia. SBI has a long-standing partnership in place with Ripple aimed at launching international payment services. As part of that announcement, SBI confirmed the participation of Malaysia-based cross-border payments hub Tranglo in the project. Crypto adoption and growthDespite legal constraints, Vietnam emerged as a leader in crypto adoption in Asia in 2023 by claiming the third position in Chainalysis’ 2023 Global Crypto Adoption rankings. The region, still adapting to the global rise of cryptocurrencies, is undergoing a transformation. While centralized exchanges dominate in various countries, regional preferences vary. In the Philippines, a noteworthy 20% of the population engages with crypto sites for gaming and gambling. In contrast, Vietnam and Pakistan distinguish themselves with citizens favoring peer-to-peer exchanges. This approach allows direct trading between individuals, bypassing large corporations. A report produced by Kyros Ventures and Coin68 in conjunction with Hong Kong’s Animoca Brands last year found that 76% of Vietnamese crypto holders determine their investment choices based upon recommendations from friends and people within their peer group. The collaboration between regulatory bodies, financial institutions, government and crypto projects illustrates the growing integration of digital assets into traditional financial systems. This latest example pertaining to Vietnam and XRP certainly offers the potential of a much greater level of adoption in the region. While activity within Vietnam may be a key consideration for XRP investors and stakeholders in 2024, the potential for a Ripple initial public offering (IPO) is also something they’re likely to be watching out for. Over the course of the past six months, a Ripple IPO has been the subject of speculation. That speculative interest has likely increased following Circle, the issuer of U.S. dollar stablecoin USDC, filing for an IPO last week.  

Analysts expect crypto market cap to triple or more next yearThe Korbit Research Center, affiliated with South Korean cryptocurrency exchange Korbit, published a report last Friday that provides projections for the crypto market in 2024.The paper includes contributions from its team, notably head of research Peter Chung, as well as research analysts Choy Yoon-young, Kang Dong-hyun and Kim Min-seung.Peter Chung predicts that the total market capitalization of cryptocurrencies could soar to $5 trillion, more than three times greater than its current level of $1.6 trillion. He attributes this potential growth to three key factors: the possibility of the U.S. Federal Reserve easing its monetary policy, the potential approval of spot bitcoin and ether exchange-traded funds (ETFs), and the anticipated Bitcoin halving event expected in April 2024.Photo by Pierre Borthiry — Peiobty on UnsplashFactors driving crypto market growth in 2024Peter Chung suggests that the growth of the crypto market will be driven by the expanding utility of virtual assets. He believes that once ETFs for bitcoin and ether are approved, these cryptocurrencies will become more versatile as investment options. This, in turn, is expected to enhance their reputation and foster wider adoption, having a significant influence on the broader crypto ecosystem beyond the two most dominant cryptocurrencies.Real-world assets and financial firmsChoy anticipates that the U.S. Securities and Exchange Commission (SEC) will approve spot bitcoin and ether ETFs by the first half of next year. On a different note, Kang focuses on the importance of blockchain technology, particularly emphasizing real-world assets (RWAs) and roll-up solutions. Kang highlights that since RWAs are closely linked with traditional financial institutions, an influx of capital from these entities is likely to boost the RWA market. This interaction between traditional finance and blockchain technology could be a key driver of growth in the sector.Regulatory changes and landscape shiftKim Min-seung, another analyst from the team, forecasts that upcoming regulatory developments could alter the dynamics of the cryptocurrency market. A notable development in this regard is the forthcoming implementation of the Virtual Asset User Protection Act in South Korea, set for July next year. According to Kim, these changes might result in a scenario where only competitive cryptocurrencies survive.Kim elaborates that the perception of virtual assets is poised for a shift. Currently, crypto investors tend to base their decisions on expectations of arbitrary cryptocurrency inflation. However, once new regulations are implemented, investors are likely to start assessing the actual value of virtual assets more critically. This shift in approach could lead to a more value-driven and stable cryptocurrency market, as speculative tendencies might decrease and a focus on intrinsic value increases.According to local news outlet website The Asia Business Daily, Peter Chung anticipates further growth in the cryptocurrency market next year, following its rebound this year. He suggests that this growth trajectory will not only continue but also attract increased attention from the public.

Japanese blockchain infrastructure firm Soramitsu has been contracted by the State Bank of Pakistan (SBP) to work on a pilot program for the digital Pakistani rupee. Pakistan originally announced its intention to pursue a central bank digital currency (CBDC) or digital rupee back in 2019. However, unlike other Asian nations such as China, Cambodia and Thailand, it has not taken much action to progress such a digital currency since then.SBP Governor Jameel Ahmad spoke at the Reuters NEXT Asia Summit in Singapore last month, outlining that the South Asian country was moving towards the establishment of a digital rupee and “building up [its] capacity” to launch it, and that a pilot project would be the next step. According to a report published by Nikkei Asia on Aug. 12, that pilot project is now underway.Photo by Hamid Roshaan on UnsplashCBDC specialistSoramitsu already has a wealth of experience in this field. In 2023, it signed a memorandum of understanding with the Laotian central bank to launch a proof-of-concept CBDC project, with the Tokyo-headquartered company going on to play a pivotal role in the issuance of Laos’ Digital Lao Kip.In Cambodia, it partnered with the National Bank of Cambodia to bring about the establishment of Bakong, Cambodia’s CBDC-like payment system. The company is also involved in CBDC projects in Papua New Guinea and the Solomon Islands, while spearheading a project aimed at enabling seamless cross-border payments among Asian countries. Japanese fundingIn the case of Pakistan’s pilot project, Soramitsu’s CBDC platform will facilitate the digital rupee while funding is being provided by the Global South Future-Oriented Co-Creation Project, an initiative from Japan’s Ministry of Economy that seeks to promote the formation of co-creation business models. Infrastructure, such as the internet and power, can be unstable in some parts of Pakistan. Consequently, the proposed CBDC will incorporate the ability for the user to transact with it using their smartphone, even if the phone doesn’t have an active internet connection. Digital transformationMasato Toriya, an associate professor at Tokyo University of Foreign Studies and an expert on Pakistan, outlined the behavioral change that would be required in getting Pakistanis in rural areas to use such a currency. He stated: “Many transactions in rural areas are cash-based, even for wage payments, and the rate of people with bank accounts is low."  However, cash-based systems have significant overheads, and it's thought that a CBDC could reduce such costs considerably. Last month, the Pakistan Institute of Development Economics published an article written by Dr. Ahmed Fraz, an assistant professor of finance with the organization, in which he claimed that the digital rupee pilot project is part of a “profound digital transformation” that Pakistan is moving towards.  Dr. Fraz asserted that a CBDC would enhance financial inclusion in Pakistan through the reduction of transaction fees, digitization of welfare payments and the financial inclusion of millions of unbanked citizens within the formal economy.He added that the digital rupee “is not intended to replace existing payment systems immediately but to complement platforms” and to modernize Pakistan’s financial architecture.