Asia is in the middle of a full-blown crypto revolution. Japan has adopted Bitcoin like few other nations in the world, South Korea recently announced crypto clarifications, and China’s underground cryptocurrency scene is thriving – now Hong Kong is joining the party. Surveys can often produce skeptical results, but we certainly believe that there is some truth behind a recent Hong Kong Blockchain Association (HKBA) poll. It discovered that 23% of those spoken to believe that should the Hong Kong economy take a downturn, investing in cryptocurrency is a viable option.
Playing it Safe
Hedging in trading isn’t exactly new, but to see a poll reveal that so many people back cryptocurrency as an acceptable way of doing this can be considered surprising. The HKBA feels that the survey represents the country’s general opinion on cryptocurrency right now, along with its desire to open up to more diversified investment options.
Bracing for a Trade War
China is arguably on the brink of a full-blown trade war with the United States, this has sent a chill throughout Hong Kong. 46% of the country’s citizens now feel that a recession is likely as China-America relations worsen. The fear of an economic crash is rife, with it likely to hammer the stock market down to significant losses. Looking for solace, the HKBA feels that investors will turn to virtual currency as a safety net – in spite of its wild volatility.
Cryptocurrency is on the Rise
The stunning rise of the cryptocurrency market has made headline news in Asia, with interest among Hong Kong’s population growing. Breaking down the results of the survey, it’s clear that the crypto interest largely comes from a predominantly younger demographic. Considering that cryptocurrency trading has shaken loose some of the investing stereotypes of old, this statistic shouldn’t surprise as anyone.
Various Challenges Ahead
While it’s apparent that there is legitimate cryptocurrency interest in Hong Kong, the poll has revealed that 60% of respondents are calling for licenses and more clear regulation on crypto trading platforms. The suggestion is that Hong Kong needs to follow in the footsteps of Singapore and Japan sooner rather than later – by introducing a structure that cryptocurrency regulation can be built upon.
The Hong Kong government is making Blockchain a major priority, with it also taking a serious look at ICOs as a viable means of fundraising. Yet, there remains doubt in the air, as ICOs and cryptocurrency still have tentative links to cybercrime, which means that adoption in Hong Kong isn’t likely to be smooth sailing.
Potential, Potential, Potential
The potential for Hong Kong in the cryptocurrency space is huge, especially if this survey report is anything to go by. However, with regulatory matters still something of a grey area, don’t expect it to challenge for Japan’s “Crypto Hub” crown any time soon.
