The Crypto Wealth Report revealed a surprising increase in global crypto adoption in 2023.
Malaysia ranked 10th in the report, surpassing expectations in high-income countries such as Singapore and the US. This achievement, particularly in ‘Innovation for Technology’ and ‘Economic Factors’ metrics, not only highlights Malaysia’s growing crypto community but cements its position as a formidable crypto hub contender in Southeast Asia.
These findings showcase the versatile and universal impact of blockchain technology across various economic strata, from upper-middle-income to well-established economies. Malaysia has actively embraced blockchain technology, using it as a tool for innovation, overcoming infrastructural challenges and fostering solutions that address real-world challenges.
The growth of local Malaysian crypto communities, spearheaded by a new wave of developers and entrepreneurs, is not just about technological advancement. It is the nation’s commitment to leverage advanced technologies like blockchain to uplift communities.
Financial inclusion through blockchain
In contrast to higher-income countries, a significant portion of the population in upper-middle-income economies remains unbanked or underbanked. In Malaysia, approximately eight per cent of the population is unbanked, while over 55 per cent are underbanked. Despite these challenges, the country’s high internet penetration rate, at 97.3 per cent, presents a unique opportunity for financial inclusion through blockchain technology.
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Blockchain-powered financial services offer a gateway for individuals to access essential services like banking, remittances, and microloans. This advancement is particularly crucial in bridging the gap for those traditionally excluded from the financial system.
A testament to this potential is the partnership between Acxyn and MDEC. Acxyn, the world’s first IP tokenisation platform, revolutionises the concept of asset ownership. By converting intellectual property into tradeable digital assets, it enables individuals to invest in diverse commodities such as digital art, game assets, and software. More than asset tokenisation, this innovation also democratises investment opportunities for the broader population, given they have access to a smartphone and internet connectivity.
Initiatives like this, when supported by the government, are instrumental in driving economic growth from the grassroots level. They not only validate the transformative potential of blockchain technology but also underscore the government’s commitment to fostering innovation, bringing these solutions to the market, and positively impacting communities.
Real problems, real solutions
One of the most significant advantages of blockchain technology is its ability to address real-world problems. This is particularly evident in the strategic partnerships between government entities and emerging tech startups. These collaborations are crucial in harnessing innovation and new technologies to create fresh opportunities within the economy.
A prime example is the recent partnership between Quurk and MDEC, a game-based learning company. Quurk is pioneering the first open-world learning game in the Web3 space, offering a unique platform where students can learn to code. More than just an educational tool, this initiative leverages blockchain technology to make education more accessible and engaging. Young developers not only learn how to code but also develop skills which are becoming increasingly relevant, thereby futureproofing the next generation of leaders.
Such public-private partnerships, particularly within the blockchain ecosystem, are important in upskilling the next generation. They play a pivotal role in increasing educational accessibility, thereby preparing young individuals for a rapidly evolving digital world. Beyond the economic space, blockchain technology’s societal impact is also profound.
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It extends to job creation, attracting foreign investment, and community education. By fostering educational opportunities and nurturing the next generation of entrepreneurs, these initiatives enable societies to reskill and upgrade, positioning themselves competitively on the global stage.
To sum it up
In conclusion, the integration of blockchain technology in developing nations like Malaysia marks a transformative era. This integration goes beyond being a trend, emerging as a robust solution to address real-world challenges.
By enabling access to banking investment services, blockchain technology plays a crucial role in narrowing the financial inclusion gap, democratising financial opportunities and bringing economic empowerment to those previously excluded, particularly the unbanked and underbanked populations.
Furthermore, the blockchain is also a catalyst for creating new opportunities. It stimulates investments and nurtures a new generation of entrepreneurs. The commitment of local communities, when combined with strategic collaborations and support from governments, is pivotal in driving this transformative change.
As upper-middle-income societies begin to embrace blockchain technology, they are provided with the opportunity to adapt and thrive. This adoption is key to bridging the development gap with more affluent Western nations, positioning these societies at the forefront of the global innovation landscape.
More than a technological advancement for upper-middle-income nations, blockchain technology represents the cornerstone of a more inclusive future, set to pave the way for equitable growth and shared prosperity.
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