Bitcoin demand in Asia is more active than in the US
Back on May 31st, one the major Bitcoin exchanges in China called OKCoin returned to help improving the Bitcoin demand withing the Chinese exchanges after a period of suspension of transactions.
As a result, more bitcoin investors are recovering their interest in bitcoin and they are driving the demand for the digital currency.
So, thanks to the activation of withdrawals, bitcoin is now trading at a premium rate in China.
Also, the Chinese press that talks about bitcoin as digital gold is pushing the recent growth of the bitcoin demand for local traders.
On Friday, bitcoin price was about $2,340 in China. A value that was $50 higher than the US rate.
Of course, there are several other major factors that are driving bitcoin price. For example the legalization of the digital currency in Japan, and the use of ICOs in raising funds.
Experts believe that the increasing demand in Asia is pushing the recent growth in the bitcoin price.
South Korea
In South Korea, Bitcoin price increases up to $3,100 when the price on the US exchanges was about $2,400, so $300 higher than the US.
A few startups are also using bitcoin for sending remittances since it works better and faster than traditional money.
For example, one of these startups is called Bluepan, located in South Korea. This company provides an easy way to send money from overseas workers to their families.
In 2 years, Bluepan has processed payments worth $65 mln and for the past year, they recorded a five-time increase in transactions.
Why in Asia?
That said, it is clear that Bitcoin demand in Asia is increasing and its driving prices, while North America shares only a small amount of all users in any sector.
For example, there are fewer customers in North America who use money transfers than in Asia.
This is maybe due to the fact that the worldwide financial system is based on the US dollar, so remittance transactions are easier between dollars and non-dollar currencies compared with transactions that involve two non-dollar currencies.
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Korean Blockchain Consortium ft. 27 firms
A new Korean Blockchain Consortium has been created by 27 firms and startups with the goal of developing tools to manage trade financial processes.
This Korean Blockchain Consortium is composed with both major companies of the financial sector and technology startups.
According to The Loop startup the Korean Blockchain Consortium was born for this reason:
“Beyond providing the blockchain-based authentication and information sharing system, we collaborate with other technology providers on developing a prototype for financial services in areas of securities trade and post trade, the prototype that is to reduce the cost and operational risk in trade finance and ultimately improve trade efficiency”.
The Korean Blockchain Consortium includes Daishin Securities, Dongbu Securities, Yualta Securities Korea and Kiwoom Securities.
Some of these members have already worked in the blockchain field with regional startups.
The blockchain project was organized by the Korea Financial Investment Association, or an industry trade group based in South Korea.
This is the second blockchain-related project born in Korea and its creation last week comes after another news about the formation of a consortium spearheaded by the South Korean government.
Also, in October the East Asian government started to create its public-private consortium supported by the most important banks in South Korea and their major regulator, or the Financial Services Commission (FSC).
“With the creation of the consortium, momentum is expected to start for spreahading the development of technology and service in the blockchain field, rather than passively following the footsteps of advanced nations,” explained Kim Yong-beom, chairman at Financial Services Commission.
The government consortium aims at creating a new task force to regulate the technology in the banking sector.
To read more news related to the Korea effort in the Blockchain sector, click here.
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