The potential of distributed ledger technology, or Blockchain, to transform financial market is getting more widely recognized. Fintech players across the globe are looking more into Blockchain technology and digital currencies.
The scope of development however varies across the regions. While in some regions potential applications are in their infancy, in other parts of the world the application of technology is getting closer for wider implementation.
Cointelegraph spoke to Stelian Balta and Arai Ezzra from DinarDirham on what contributes to development of cryptocurrency business.
Balta explains:
“The major issue for mass adoption of digital currencies is volatility.”
Backing Gold trading with Blockchain
DinarDirham is a global Fintech company represented in Hong Kong, Kuala Lumpur, and soon in Dubai, which provides Gold and Forex investment solutions worldwide. DinarDirham team has developed a range of services and products which include DinarCoin, DinarDirham wallet, and upcoming DinarDirham debit card.
“With DinarCoin, we solved the volatility problem,” says Balta. “Users can now buy digital currency knowing that it will follow the gold price. It’s stable and safe. DinarCoin is backed by the global gold spot price, compared to other digital currencies with prices based on supply and demand, such as Bitcoin. Our mission is to offer financial stability and reliable services.”
Another service offered by the company, DinarDirham Wallet, is Blockchain based platform for exchanging, trading or storing digital assets. As Balta said, soon it will become possible to withdraw digital assets from the wallet directly by using the DinarDirham debit card. Company is currently working on the implementation of this new solution.
Asian Fintech boom
Asia certainly has a competitive edge in Blockchain tech. Fintech startups across Asia raised $2.6 bln in funding only in the first quarter of 2016. Fintech investments in Asia-Pacific have skyrocketed in 2015 — from about $880 mln in all of 2014 to nearly $3.5 bln in just the first nine months of 2015 (research by Accenture).
“The interest in cryptocurrencies is overwhelming, because people are more open towards this kind of financial technology,” says Arai Ezzra. “South East Asia is a “mobile first” region. With technology tools being more accessible, everyone is beginning to see the huge impact and disruption that’s happening across the industry. There are plenty of digital currency ATM and ATVM machines in several countries around Asia, for example in Hong Kong, Singapore, Indonesia, and Malaysia. I think Blockchain technology will be an important technology in finance and banking in the years to come.”
- Arai Ezzra from DinarDirham
The interest of the community in this technology in the region is also visible through wider merchant account integrations and payment gateways using digital currencies. What are the reasons of such a positive trend? The road from concept to implementation might be long and bumpy and involve certain challenges ranging from acceptance to trust, regulation, and others.
The importance of favorable regulatory climate should not be underestimated. Indeed, it is impossible to grow a cryptocurrency, or a Fintech business in general, if regulators put spoke in a wheel.
“In South East Asia, the regulatory climate for running a Blockchain business is still at an early stage, but important progress is being made,” says Arai Ezzra. “Some countries, for example Singapore, Thailand, Philippines, and also Malaysia are starting to be more inclined to fostering innovation, especially in the area of Fintech. That’s why Singapore and Malaysia have created Sandbox programs in order to move the industry forward.”
Perhaps the most important factor that contributes to the development of cryptocurrency business is the effect of the network itself. As Arai Ezzra explained, any given currency gains use value as the number of its users increases, therefore, popularity of a certain currency is integral in that currency's success. This leads us to one of the major obstacles that cryptocurrency has to deal with which is based on the users’ knowledge of the cryptocurrency.
“We need a mechanism that can connect all of the crypto community together, like what DinarDirham has been doing since 2014, in order to educate people about the technology,” concludes Arai Ezzra.
Raising awareness for wider application of technology
DinarDirham proved a Fintech company can do this successfully with their recent Future & Blockchain Technology Conference held in the beginning of September in Malaysia. Over 600 participants attended the event to gain new knowledge about Blockchain and get to know real life applications of the technology. The event started with presentations from 6 key speakers including Hrishi Olickel, Loi Luu, Ismail Malek, Felix Sidokhine, Dato Amart and Colbert Low..
DinarDirham was also a platinum sponsor for Devcon 2 (19 th September – 22 September), the largest gathering of Ethereum developers and enthusiasts around the world in Shanghai, China. DinarDirham is strongly interested in exploring how Ethereum will develop in the future.
The next step for DinarDirham in spreading knowledge and expertise about Blockchain and cryptocurrency will be the participation at the 4th China Forex Expo that will be taking place on the 28th and 29th of October 2016 at Great China International Exchange Square of Shenzhen.
DinarDirham is glad to receive the award "The Most Innovative Gold FinTech Provider" at China Forex Expo accompanied by hundreds of experts from finance industry and more than 10,000 attendees. Given the rapidly growing financial market in China, this event will provide know-how about what’s moving the financial markets via a range of free seminars and an exhibition of Forex products and services.
In addition, DinarDirham is glad to offer a community of digital currency enthusiasts an opportunity to benefit from company’s technical innovations and knowledge in Asia market with starting a crowdfunding campaign in early 2017. DinarDirham team hurls an effort into development of business through raising awareness about technology and believes that cryptocurrencies have come to stay.
“Current currencies and digital currencies should work together and coexist, because in order to make any changes to the current financial system, it should be done in stages,” says Balta. “But we should certainly continue to provide more options for people to choose from.”