Blockchain technology, often associated with cryptocurrencies like Bitcoin and Ethereum, is increasingly being recognized for its broad applications beyond digital currencies. Kevin Varend, COO & Founder of J3D.AI Labs, emphasized that blockchain is revolutionizing not only the finance sector but also governance, supply chains, and industries across Asia. Based in Estonia, J3D.AI Labs focuses on bridging disciplines and fostering transformative collaborations within the blockchain space.
In his opinion piece for Horasis, an independent international think tank, Varend underscored that small and medium-sized enterprises (SMEs)—the backbone of Asia’s economy—are particularly challenged by financing barriers and inefficiencies. He argued that blockchain offers solutions by streamlining payments, contracts, and logistics, significantly reducing costs and enhancing transparency. Blockchain also plays a key role in reducing trade finance costs and enabling decentralized finance (DeFi) solutions, which allow businesses to raise capital outside traditional banking systems.
The technology’s potential extends to industries like agriculture and pharmaceuticals, where its tamper-proof tracking can reduce fraud and ensure product authenticity. Blockchain provides real-time, immutable records that help businesses and consumers verify the origin and journey of goods, addressing concerns over counterfeit products and unethical sourcing.
Governments Exploring Blockchain for Public Trust
Varend’s observations align with broader trends in the region. Governments are increasingly turning to blockchain to improve governance, public trust, and digital identity systems. Blockchain technology can enhance transparency and reduce corruption in areas like electoral voting, welfare distribution, and land registries.
Despite its potential, the widespread adoption of blockchain faces regulatory challenges in Asia. While China has aggressively integrated blockchain, countries such as India and Indonesia are struggling to establish clear legal frameworks. Experts urge policymakers to harmonize regulations to unlock the technology’s full potential.
Promising Developments Across Southeast Asia
The ASEAN region is witnessing rapid blockchain adoption. The ASEAN Center for Energy, in its insights, emphasized the growing recognition of blockchain’s capabilities beyond cryptocurrencies. Thailand is at the forefront, having enacted laws governing cryptocurrencies and exploring blockchain’s use for securities settlements, cross-border payments, and supply chain financing. Veerathai Santiprabhob, Governor of the Bank of Thailand, highlighted that blockchain’s ability to safeguard financial information and reduce fraudulent activities could strengthen the nation’s financial infrastructure.
Singapore is also leading the way with a receptive stance toward blockchain, especially in Initial Coin Offerings (ICO) and innovative applications. Singapore has become a hub for ICOs, particularly following China’s ban on the practice. The city-state has also pioneered blockchain experiments in the energy sector, such as the peer-to-peer energy trading platform developed by Electrify. The start-up, which raised $30 million in funding, aims to offer cheaper electricity through blockchain-based transactions.
Across the border, Malaysia has established the largest blockchain center in Asia, the New Economy Movement (NEM) Foundation. This center supports blockchain education and startup incubators. The country’s central bank is also fostering a fintech ecosystem by offering a sandbox for blockchain-related companies to test their innovations.
Indonesia, with its growing blockchain startup scene, is exploring the technology’s potential in various sectors, including government, supply chain logistics, and data security. The Online Pajak app, driven by blockchain, has already helped improve tax system transparency and reduce paperwork.
The Road Ahead: Financial Inclusion and Regional Cooperation
Blockchain is also seen as a solution for Asia’s unbanked population. With over 400 million individuals without access to traditional banking, blockchain offers an alternative through low-cost cross-border payments and digital wallets. Countries like Singapore and India are already integrating blockchain into trade, smart cities, and digital commerce.
For blockchain to thrive across the region, experts emphasize the need for clear regulations, infrastructure investment, and regional cooperation. As the technology evolves, its impact on Asia’s digital economy is set to grow, promoting transparency, efficiency, and financial inclusion.
Accelerated efforts
Governments and businesses in Southeast Asia are accelerating their efforts to integrate blockchain into public services, finance, and supply chains. While challenges remain, the promise of blockchain’s versatility and decentralized nature continues to capture the attention of both the private and public sectors across Asia. The future of blockchain in the region looks bright, with significant progress already underway.
Shogun Lin
