Crypto gaining ground as mode of payment in Hong Kong

Some 18 percent of respondents in Hong Kong have used cryptocurrency to send or receive money, buy goods or accept payment, a survey conducted by Visa has revealed. Also, a third of crypto owners plan to switch to banks that offer crypto-related services in the next 12 months.

Additionally, 10 percent of the 797 Hongkongers surveyed have purchased cryptocurrency as an investment but have not transferred or transacted it.

A large number of the owners - 88 percent - expressed interest in crypto cards, which allow customers to convert and spend crypto at retail stores. Eighty-six percent are interested in a service that will allow customers to earn crypto as a reward for card spending.

As for the reason why they own and use cryptocurrency, 43 percent said it is a way to take part in the "financial way of the future" while 32 percent said it is to diversify their investment portfolio.

Digital assets, meanwhile, are the "top contender" for a "major correction" in 2022, according to a survey done for Natixis Investment Managers.

Nearly three-quarters of the institutions polled, however, said cryptocurrency is not an appropriate investment for most retail investors.

About 40 percent of 500 institutions surveyed said they recognize cryptocurrency as a legitimate investment option and that central banks will eventually need to regulate them.

Some 28 percent of them are currently investing in cryptocurrencies and of those nearly a third said they plan to increase their crypto allocations next year.

An index of the largest cryptocurrencies - the Bloomberg Galaxy Crypto Index - added roughly 200 percent so far in 2021. This year saw a number of large fund managers, investors and pensions dabble in crypto. Some noted that digital assets like Bitcoin could act as good inflation hedges amid a stimulus-heavy environment.