AAX and Forrester Research published recently the results of a survey that was conducted across Africa, Latin America, Southeast Asia, and the Middle East on Bitcoin adoption. Ben Caselin (Head of Strategy and Research at AAX) was asked a few questions about the results and the key findings.
Q: Please share some information about the recent study that AAX conducted on Bitcoin Adoption
A: Emerging markets such as Africa, Latin America and the Middle East have shown increased potential and interest to AAX as these regions are the primary locations where we’re seeing the adoption of Bitcoin and other digital assets. That’s different from other regions like Europe and North America, where adoption is primarily driven by speculation. According to the study, both consumers and companies in emerging markets adopt cryptocurrency for specific purposes such as money management and payments.
This study was commissioned to provide more information on the topic of cryptocurrency adoption and to communicate to other industry members that there is more to it than just trading and profiteering. We need to focus on crypto’s impact and utility as a viable financial technology in the real world, and developing economies are the primary locations where this is happening.
Q:Which parameters are considered in the study?
A:Forrester adheres to strict standards in all its studies. This ensures that any observations made by the company are well-supported and is true to the emerging market being studied.
Forrester was hired by our company to understand how Bitcoin is used in emerging markets around the globe. We wanted to know its adoption level, the purpose of people using it, as well as the general perception and understanding of the technology.
Q: Is it possible for you to share information regarding the survey respondent’s demographics as well as their sample size?
A:Forrester conducted a survey online of 806 individuals in Africa, Latin America. the Middle East, and Southeast Asia that asked them if they knew of or used Bitcoin. Forrester interviewed eight senior financial and insurance decision-makers in the region for a deep dive into each market’s nuances.
For a more detailed breakdown of the survey respondents’ demographics, please see this video and the appendix in the study.
Q:What is the consensus among survey participants regarding Bitcoin as an alternate mode of payment to trading instruments?
A:The study reveals that the socio-economic circumstances in emerging markets are very different to those found in North America or Europe. Consumers in developing countries tend to have lower disposable incomes and can therefore be less risk-averse. People in developing regions are more likely to accept new payment technologies that help them save money.
It was found that people with a greater knowledge of Bitcoin are more inclined to send and receive payments domestically and internationally using it.
Inflation can seem extreme in the United States, but it is common in many other countries. Consumers in Turkiye, Argentina, and Turkiye are used to high inflation. This has been a major factor in local economies for many decades. These places have made it a habit to use Bitcoin and other cryptocurrency, like stablecoins as an insurance against inflation and debasement.
Q:Does the evidence indicate that regulatory bodies in the region play a role?
A:While not all governments are supportive of Bitcoin and some may be unsure about their stance, this study shows that most believe digital assets could open up new opportunities for economic growth. One thing to note is that adoption rates don’t always correlate to the state of regulation within nations. However, El Salvador has made it easier to adopt Bitcoins than Afghanistan. Afghanistan is unable to comply with regulations that would allow exchanges to serve the local population.
Digital asset inflow from those countries have been discouraged by Bitcoin’s adoption. However, remittances and not direct purchase are the primary drivers of this digital currency. However, we found that Bitcoin acceptance, understanding and adoption are on the rise in all countries we visited, whether there has been any encouragement from local governments.
Q:Which market is AAX currently located?
A:AAX included a select few countries in its study. Turkiye was chosen because these markets are important for our expansion plans. We have already established a presence in both of these markets and we’re expecting to see significant growth in these jurisdictions over the coming year as we step up our efforts to expand there.
One way we do this is through AAX Trends, which is a subdivision of AAX that’s focused on impact and education. One of AAX Trends’ primary goals is to engage with local communities through meetups and educational campaigns, with the aim being to raise awareness about digital assets and position ourselves as a leading brand in these markets.
However, these markets require innovation from the product side. With the new AAX App, we’ll be discussing our strategy to target these markets. Next month is September 28-29. AAX will be the title sponsor for Token2049 Singapore.
QAAX has any plans for the future in these areas?
A: We see a big opportunity to grow AAX’s presence in countries including Brazil, Nigeria, The Philippines, Taiwan, Turkey and Vietnam and we have lots of exciting initiatives in store that we cannot reveal yet. These are important growth markets that AAX can tap into at both the product and marketing level.
We plan to create a variety of programs that empower consumers and encourage them to use digital assets to solve local problems. We believe these are long-term, key projects that will be a major part of our efforts to increase adoption in these markets.
Q: It will be great if you can summarize the findings of the “Bitcoin in Emerging Markets Survey”
A:It is clear that there is a lot of awareness about Bitcoin in emerging markets such as Africa, Latin America and Southeast Asia. However, there is also a rapid increase in adoption, with people using it to pay bills, save money, and manage their money.
According to the survey, 74% are familiar with Bitcoin, and 52% claim that they’ve seen an increase of people using Bitcoin within their country the past year. A majority of the respondents also believe that Bitcoin will be a major enabler for a digital future. We’re already seeing that play out with Bitcoin emerging as a platform for payments and money transfers in places where traditional banking services are unable to cater to significant segments of the population.
The survey also found that Bitcoin adoption is likely to grow in emerging markets despite its volatility. This is because Bitcoin helps fill the digital transaction gap and allows for cross-border payments. According to the data, there is a possibility of a leapfrog effect in which more people start using Bitcoin for daily transactions.
Q:Do you have any other ideas?
A: Building on the survey, AAX is set to participate in September’s Token2049 event in Singapore as a title sponsor. It will also host a launch party for AAX trends. AAX will host both these events to promote Bitcoin adoption in emerging countries. We’ll also be looking at partnerships opportunities in the target markets.
About the AAX
AAX, a leading digital asset exchange for global users, aims to bring the advantages of digital assets to all. Our goal is to give the opportunity to 96% of the people in the world who have not yet acquired Bitcoin and to encourage the dialogue about digital culture.
AAX has been favored by over three million people in more than 160 countries. It is also the first exchange that uses the Satoshi Standard to encourage the adoption of Bitcoin. We also offer high-yield savings plans, 200+ spot pair, highly liquid futures markets and regular discounts on key tokens.
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