Emerging markets are driving crypto adoption thanks to stablecoins and the ability to earn – Wei Zhou
https://www.youtube.com/watch?v=/wz7u3IokH6I
Emerging markets are driving crypto adoption because of the solidity that US dollar-denominated stablecoins offer and because of the opportunity to monetize blockchain-based gaming, according to Wei Zhou, CEO of coins.ph, the largest crypto exchange in the Philippines.
Zhou, who previously served as CFO of Binance and has over 15 years of experience in technology and media, said that since the US dollar is seen as a safe haven in emerging markets, stablecoins allow people to trade in US dollars without having to pay significant transaction fees .
“The [overseas workers] are charged anywhere between three and ten percent in terms of the cost of sending this money,” Zhou observed. “It’s just one case where we think crypto and blockchain might be a better solution.”
A 2022 Chainalysis report found Vietnam, the Philippines, and Ukraine to be the top countries in the world in terms of crypto adoption.
In a conversation with David Lin, anchor and producer at Kitco News, Zhou said that online gaming, and the opportunity to monetize it, is another reason for crypto adoption in emerging markets.
“There is no cheaper form of entertainment than mobile gaming,” he said. “With this type of game, you have this environment where NFTs come into play, where you can actually earn value while playing a game.”
Zhou suggested that while earning $5 playing a game in the United States or Canada may not seem like much, it could be a significant amount of money in Nigeria or India.
“I think a more skill-based type of gaming is coming and that will bring real revenue,” he said.
Bitcoin replaces fiat money
So-called “Bitcoin maxis” propose that Bitcoin, due to its scarcity and security, will replace fiat money and become a dominant store of value, and medium of exchange, as Bitcoin’s adoption increases.
Zhou said this is unlikely, given Bitcoin’s volatility.
“I think other types of tokens can provide that use case,” he argued, “and I think you’re seeing that now with CBDCs, which are basically going to be stable coins denominated in local currency.”
CBDC, or central bank digital currencies, are fiat tokens issued and controlled by central banks.
To find out why Zhou believes “strict regulation” of crypto is necessary, watch the video above
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