Coinbase Eyes Emerging Markets For Next Leg Of Growth :Research

Coinbase Eyes Emerging Markets For Next Leg Of Growth :Research

Crypto trading has grown leaps and bounds and so have exchanges in the past couple of years. But most of the trading volumes were restricted to advanced countries such as USA, Japan, and Korea. Having seen success in these countries, crypto exchanges are slowly hunting for a newer destination to sustain their growth and which happens to be the emerging markets.

Coinbase Eyes Emerging Markets

According to the recent report released by Diar research, Coinbase is eyeing emerging markets to tap the next leg of growth in crypto trading as part of is 2019 strategic plans. According to the report Coinbase’s Vice President focusing on international expansion, Dan Romero gave an interview to Diar where he discussed the exchange’s growth plans and strategy for 2019. With Japanese license procedure already underway and business nearly settled in the developed countries, Coinbase believes moving to emerging countries should give them a similar response and continue to accelerate the company’s growth.

To quote Dan’s excerpts from the interview, who says that the exchange is currently trying to understand specific solution for emerging markets, he mentioned

“Use cases in developed markets will be different to those in emerging markets as the US and Europe have a fairly well-developed financial system. Our mission is to build out the ecosystem so that we can move away from the narrative of crypto only being a speculative investment. We need to move the technology into the Utility Phase”

While he did not mention any specific countries that the exchange is looking at he mentioned

“What you’ll see in 2019 and beyond is a big push to dramatically expand the number of countries offering an easy on-ramp into crypto. We are actively exploring countries in Latin America, Africa, and South East Asia.”

“People speak about remittances as a use case for crypto but the reality is that in emerging markets the access for fiat on and off ramps is very low”

Crypto volumes gaining strength in Emerging countries

While the crypto markets are still bearish and bitcoin prices in languishing way below USD 4000, volumes from the peer to peer bitcoin trading site local bitcoins, which is now back online, shows the usage is rising steadily in emerging market countries such as India, Kenya, Nigeria, and across Latin America.

According to data provided on Coin.Dance, the volumes are slowly seeing a rise in these countries somehow adding color to the strategies of these exchanges

chart

Crypto volumes Chart for India

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Crypto volumes Chart for Kenya

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Crypto volumes Chart for Nigeria

While the story and growth prospects look interesting, the challenges in these emerging countries are not going to be easy regulators and lawmakers have been continuously issuing warnings that the freewheeling crypto sector is vulnerable to hacks, fraud and money laundering. Getting regulators on their side would be the biggest challenge for these exchanges

Will crypto exchanges be able to reap benefits from emerging markets? Do let us know your views on the same.

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Coinbase Eyes Emerging Markets For Next Leg Of Growth
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Coinbase Eyes Emerging Markets For Next Leg Of Growth
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Crypto trading has grown leaps and bounds and so have exchanges in the past couple of years. But most of the trading volumes were restricted to advanced countries such as USA, Japan, and Korea. Having seen success in these countries, crypto exchanges are slowly hunting for a newer destination to sustain their growth and which happens to be the emerging markets.
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Nilesh Maurya 611 Articles

Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Reach out to him at Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Reach out to him at [email protected]

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