How bitcoin and cryptocurrencies went from Wall Street to the high streets of Southeast Asia
Cryptocurrencies are no longer the sole domain of hedge fund managers and high-stakes traders – in Southeast Asia they are being used to solve the financial problems of working men and women
It is hard to say if Sachaknisay Sov is rich or poor. He lives in a rented room in rural Cambodia without a kitchen, but he does have something in common with many millionaires.
Sachaknisay Sov uses a virtual currency similar to bitcoin. This year, when the taxi driver, 31, was looking for a way to pay bills and afford repairs to his motorcycle, he took a US$500 loan in the form of digital tokens that could be traded for cash in selected pawn shops.
“[Digital token-based loans are] absolutely much better than the traditional ones,” said Sachaknisay Sov, who used to borrow money from friends and local lenders. “It has a lower interest rate.”
Previously, he paid at least 18 per cent interest for every penny he had borrowed. Now, he pays 5 per cent.
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Sachaknisay Sov represents an emerging group in the developing world as cryptocurrencies have made their way from Wall Street to the high streets of Southeast Asia.