- Two thirds of young Singaporeans use crypto, while 93% of locals know of it, a Toluna survey found.
- In the US only 6% of all adults invest in bitcoin, according to another recent poll.
- A payment law that came into effect in January set out Singapore’s crypto licensing requirements.
- Sign up here for our daily newsletter, 10 Things Before the Opening Bell.
Most Singaporeans are positive on cryptocurrencies, regardless of age, but it is the country’s younger population that is adopting digital coins en masse, thanks to pro-crypto regulation, according to a survey by Australia’s Toluna, a consumer insights provider.
The survey, which polled around 1,000 people, was conducted in May. It showed 93% of all Singaporeans had heard of crypto and 43% owned it, with adoption highest among 26-45 year-olds. 66% of respondents in that group said they owned some crypto. In the US, only 6% of adults said they invested in bitcoin, according to a recent Gallup poll.
The Singapore survey showed 59% believed crypto would reach mass adoption, and 50% believed that bitcoin will be worth more than $US367,000 ($AU499,030) by 2030, roughly 10 times what it’s worth right now.
The positive sentiment was attributed to the country’s media coverage of the crypto adoption from private banks, the country’s successful CBDC trials plus, their regulations.
In the wider debate around whether regulation is bitcoin’s weak point, Singapore has shown how beneficial clear rules can be for crypto adoption, the survey said.
“As a key financial hub in Asia, Singapore has a high-level of cross-border transactions, which means digital currency provides a real use-case and potential benefits for its economy. This regulatory acceptance coupled with Singapore’s reputation as ASEAN’s fintech hub will make it a haven for cryptocurrency exchanges and startups over the next few years,” the report said.
The Payment Services Act, 2019, by the Monetary Authority of Singapore, a financial regulator, which came into effect by January, made it mandatory for crypto firms to attain a license. The act also set out the requirements crypto firms needed to meet to get the necessary license.
DBS, a Singaporean bank, in May launched Asia’s first cryptocurrency trust, according to a press release.
Over the 12 months leading to May, 74% of respondents that owned crypto said they had made money on their holdings. Bitcoin, the largest cryptocurrency by market value, has gained more than 200% in the space of a year.
Those from the 18-25 group were twice as familiar with ethereum, the second biggest coin by market cap and three to nine times more familiar with other alternative crypto as compared to the older age bracket.
In May, ethereum reached an all time high of $US4,168.7 ($AU5,668) but has since fallen by 44% to around $US2,335 ($AU3,175).
21% of respondents that said they had planned to buy crypto opted not to due to uncertainty around, or direct impact of, COVID-19.