The ASEAN region may not be known as a leader in blockchain technology, but it is by no means a distant laggard. Southeast Asia is home to several blockchain startups such as Indonesia’s Hara, a blockchain-based food and agriculture data exchange platform, and Singapore’s Electrify, which seeks to integrate blockchain in the electric power industry.

FREMONT, CA: Most Southeast Asian countries appear to be receptive to the idea of blockchain being used in various applications. If there are challenges encountered, the government and private sectors usually come up with solutions instead of retreating from any engagement with blockchain.

There are many promising developments that signal the growing support for blockchain technology in Southeast Asia. Financial access throughout the region is still considerably below par, but this does not indicate a weak opportunity for blockchain to flourish.

On the contrary, it provides a compelling impetus for companies to innovate and for governments to adjust policies in favour of financial inclusiveness.

The Indonesian government, for example, appears to acknowledge the potential of blockchain. The ASEAN bloc’s most populous state and largest economy has softened its stance on cryptocurrencies after initially issuing an outright ban on these digital assets in 2018.

While the country still does consider cryptocurrencies as legal money, Bappebti, Indonesia’s financial services regulator, has announced the creation of legal frameworks to enable blockchain innovations and the use of crypto assets.

Singapore, on the other hand, is becoming a destination for initial coin offerings (ICOs). In late 2017, the Monetary Authority of Singapore (MAS) announced that it was regulating digital token offerings. In the same year, MAS also introduced a tokenized version of the Singaporean dollar. Since then, ICOs in Singapore have been surging.

The Thai government has likewise helped make it easy to adopt blockchain technology and its applications. Thailand introduced cryptocurrency laws in 2018 and its central bank has been supportive of efforts to integrate blockchain-powered solutions in cross-border payments, security settlement, and supply chain management.

In March 2020, Vietnam’s government released Resolution No. 17/NQ-CP, which lays out the essential tasks and solutions involved in developing the country’s e-government system. The resolution includes the creation of a legal framework for the application of modern technologies including blockchain, the Internet of Things, artificial intelligence, big data, and Open API.

Meanwhile, the Philippines claims the distinction of being the pioneer in using blockchain technology for the distribution of government bonds. A collaboration by the Philippine Bureau of Treasury, UnionBank, and the Philippine Digital Asset Exchange has resulted in the launch of an app powered by Distributed Ledger Technology (blockchain) to make it easier and more efficient for people to invest in retail treasury bonds.