The term Fintech (Financial Technology) refers to specific software and other technologies used to provide automated financial services, and this includes fast and innovative progress such as Mobile Payments. Southeast Asia is at the forefront as one of the fastest-growing regions in the fintech market worldwide.
Fintech companies have become increasingly crucial for the Southeast Asian population, since many people in countries like Cambodia or Indonesia are still unbanked and do not have access to financial services and products. Unable to borrow or save, Southeast Asians turn to Fintech to improve their financial situation.
The boom in the Fintech industries in Asia is driving innovation in surrounding digital developments such as cryptocurrencies and Non-Fungible Tokens (NFTs). Central and Southeast Asia accounted for 35% of the $22 billion in the global trade of NFTs last year. The first tweet of Twitter co-founder Jack Dorsey was sold as an NFT for $2.9 million last year to a Malaysian businessman, demonstrating the interest and active participation of these regions.
NFTs are cryptographic assets found on a blockchain, and each token has a unique identification code and metadata that cannot be replicated. While cryptocurrencies are identical to each other, each NFT is unique and cannot be traded or exchanged at equivalency.
Real estate is an excellent example of how NFTs are ideal for digitally representing a physical asset. While cryptocurrencies are fungible, meaning that they can be traded or exchanged, NFTs makes each token unique and irreplaceable, and they are a digital representation of assets. Each token also contains a unique, non-transferable identity to distinguish it from other tokens, just like physical assets are distinguishable from each other with no two being identical.
The most apparent benefit of NFTs is their market efficiency. The conversion of a physical asset into a digital one can be a fast and efficient process. Another exciting possibility for NFTs lies in creating new markets and investments. An NFT can be a cartoon, a game’s digital avatar, a song, or even something as bizarre as a photo of an onion. Any unique creation can be a non-fungible (non-interchangeable) token with monetary value, and many artists have contributed to the scene with their unique creations.
NFTs give investors the opportunity to go greener on their investment strategy with a smaller carbon footprint than crypto mining. Ethereum is also actively promoting green energy resources for mining NFTs, batching transactions and developing a proof-of-stake system that will reduce resources needed in problem-solving to validate proof-of-work.
A recent animated short movie published by Saxo Markets expresses that impacting the world we live in will take more than merely using less water when you shower or walking to work instead of driving. Until we start caring about how our money is earned, spent, and invested, we ignore the most significant potential to impact the world we live in positively. Investing in NFTs instead of mining crypto is a good start for those who are interested in keeping up with and participating in the trade of digital assets.
Recently, an NFT project called The Meta World Development was launched in Hong Kong. It encouraged investors to purchase shares of expensive virtual land created in the metaverse, and it is affordably priced to allow for fractional ownership.
Meta World aims to be one of the most advanced digital infrastructures globally and create millions of jobs for developers and creators. Meta World’s CEO, Michael Sam, explained that they will develop the ecosystem in six areas: ‘Smart contracts, financial services, play-to-earn games (GAMES – NFTs), supply chain, health care and cryptocurrencies to serve the ecosystem and partners of METAD worldwide’, and they have already made a start with these developments.
There are currently several NFT marketplaces in Asia, and each marketplace sells different types of NFTs. The most popular and largest ones include Rarible, OpenSea and Foundation NFT, CryptoSlam, AtomicAssets, SuperRare, Nifty Gateway and NBA Top Shot. Most of these marketplaces are hosted on Ethereum’s blockchain, acting as Ethereum’s dApps.
The NFT markets in Asia are booming, with many people entering these markets attracted by the various benefits and the incredible profits they can make. However, the risks confronting this market may require regulatory intervention, which will impact their future. Currently, NFTs are in high demand and becoming increasingly popular in Asia. Therefore, if you want to invest in virtual real estate or digital art, an NFT is the most secure digital method.
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