Countries that have succeeded in implementing blockchain technologies
2023.03.09 12:59
Countries that have succeeded in implementing blockchain technologies
By Tiffany Smith
Budrigannews.com -Blockchain technology has the potential to improve customer experiences, reduce costs, and increase productivity, security, and transparency across a variety of industries. As a result, nations are investing in the creation and application of blockchain technology to address a variety of societal and economic issues.
San Salvador
After becoming the first nation to recognize Bitcoin as legal tender, El Salvador has established itself as a global leader in the adoption of blockchain technology. El Salvador’s government passed a law in June 2021 that made Bitcoin and the U.S. dollar, the country’s legal currency, both legal means of payment for goods and services. The government wanted to make financial inclusion a priority in the nation, where 70% of adults do not have a bank account.
According to El Salvador’s president, Nayib Bukele, the acceptance of Bitcoin (BTC) may make the country more appealing to foreign investors. The government took a number of actions to encourage the widespread use of Bitcoin. In August 2021, the legislature’s finance commission approved the $150 million trust fund in the state development bank, Banco de Desarrollo de El Salvador. It was designed to make it simple for Salvadorans to exchange Bitcoin for the United States dollar through automatic conversion.
In September 2021, the nation introduced its Chivo (slang for “cool”) wallet. BTC valued at $30 was in each wallet. To make it easier for people to send money to their families, the government has set up a network of crypto automated teller machines (ATMs) in 50 cities across the United States and El Salvador.
The cryptocurrency market collapse in 2022 had a significant impact on the price of Bitcoin, causing concern for the Central American nation that had invested so much in the cryptocurrency. In any case, Bukele showed no trepidation and, in actuality, swore to an investment acquisition of one BTC each day to affirm proceeded and full help for the computerized resource.
The Digital Asset Issuance Law was enacted in El Salvador in January 2023, defining the requirements for Bitcoin-backed “Volcano Bond” bonds.
Portugal
Portugal has taken the initiative to create a favorable environment for cryptocurrency and blockchain startups. The country has effectively utilized blockchain innovation in broad daylight administrations, medical care and store network the board. In 2019, the Portuguese government launched the Blockchain Panorama platform, which aims to promote information sharing and collaboration among blockchain industry participants.
Since then, enthusiasts of cryptocurrencies and Bitcoin have flocked to the area due to the favorable crypto environment and the opportunity to pay bills and taxes with BTC in real life. Vendors’ reception has likewise expanded, with Spanish startup BitBase chipping away at carrying more Bitcoin ATMs and stores to significant urban areas.
A decree establishing the fundamental conditions for the establishment of technological free zones (ZLTs) to encourage technology-based innovation was approved by the Portuguese government in 2021. Through testing and experimentation, it includes assisting in the implementation of blockchain technologies.
In order to conform to the laws of other European nations, the nation has begun adopting more stringent regulations regarding crypto taxes since then. The government announced in 2022 that a long-standing tax law that assumed crypto gains were not legal tender had been repealed.
Singapore
The government of Singapore makes significant investments in blockchain research and development, making it a leader in the adoption of the technology. Singapore has become a popular location for initial coin offerings (ICOs) due to its favorable regulatory environment, and many blockchain businesses have chosen to incorporate there.
The country’s monetary administrative body, the Financial Power of Singapore (MAS), is driving the country’s advancement of administration structures, specialized principles and foundation to support blockchain and digital currency reception. Its main job is to keep an eye on the risks in the crypto industry and find ways to reduce them without stifling technological advancement.
In 2021, the crypto exchange Independent Reserve surveyed Singaporeans from all walks of life and found that 43% owned cryptocurrency. A new survey conducted by the same company in 2022 revealed that 58% of those surveyed perceived Bitcoin as an investment asset and a store of value, indicating a high level of interest, trust, and confidence in the future of cryptocurrency and blockchain.
Malta
Malta, along with Singapore, began encouraging the use of blockchain technology as early as 2017, when it drafted industry regulations to accelerate blockchain technology’s development and earned the moniker “blockchain island.” In 2018, the Maltese parliament passed three regulations giving an administrative system to blockchain and computerized monetary forms to direct ICOs, computerized resources, advanced monetary standards and related administrations.
Crypto assets are exempt from capital gains tax in Malta because utility tokens and electronic money are not included in the Income Tax Act as capital assets. Securities and virtual finance assets, on the other hand, are capital assets and must be taxed.
The Maltese government pledged to promote blockchain and artificial intelligence (AI) at the end of 2021 by including them in their commercial guide prospect and framework. The goal is to encourage international businesses to set up shop in Malta so they can test and use blockchain technology.
Malta has not yet been designated a “blockchain island.” The island’s leaders pursued more conservative policies toward the industry than were previously promoted as a result of consistent and increased international scrutiny of its domestic political and economic events.
But many businesses that focus on blockchain and cryptocurrencies are doing well. On the island, for instance, businesses that use blockchain in the supply chain of goods like wine and olive oil are a real thing.
United Arab Emirates
The Emirates Blockchain Strategy 2021 was launched in April 2018 by the government of the United Arab Emirates to transform the country into a smart region with blockchain-powered government services and private businesses for increased efficiency.
Blockchain enables the government and businesses to save time, money, and effort while allowing people to use a transparent and decentralized system, further cementing the region’s reputation as a hub for digital innovation. The UAE government is pushing for metaverse and nonfungible token (NFT) marketplace policies that encourage innovation.
In order to promote blockchain and cryptocurrency businesses in the region, the remaining emirates that make up the United Arab Emirates (UAE) are cooperating with Dubai and Abu Dhabi in the implementation of initiatives and regulations. The Ras Al Khaimah (RAK) emirate made the announcement in February 2023 that the RAK Digital Assets Oasis—also known as the RAK DAO—would be the first free economic zone entirely devoted to digital businesses and virtual assets.
Other nations
The global market for digital assets, primarily cryptocurrency and blockchain, is expanding. It would be unfair to disregard other regions that have emerged as investment and innovation hotspots in the industry. As a result of a crypto-friendly policy, adoption in these other top nations has skyrocketed in recent years.
USA
The most extensive crypto ATM network can be found in the United States. It is the most noteworthy supporter of the Bitcoin hash rate, suggesting that blockchain and crypto reception is flourishing in the country. While there is yet to be a predictable legitimate methodology at the state or bureaucratic level, the public authority is attempting to foster a more exact crypto administrative structure to support reception and ventures.
Switzerland
Switzerland is one of the most intriguing nations to keep an eye on in the blockchain sector because of the city of Lugano’s ambition to become Europe’s cryptocurrency capital. Blockchain and cryptocurrency payments were welcomed in the small European nation in 2016 thanks to a crypto-friendly regulatory framework that encouraged businesses to relocate and invest there.
South Korea
South Korea has become a significant player in the adoption of cryptocurrency and blockchain technology throughout Asia. In order to guarantee the safe operation of the market for both consumers and business owners, the nation has taken a proactive but cautious approach to the regulation of digital assets. In order to guarantee market transparency and safety, anti-money laundering and anti-terrorism financing laws receive extensive attention.
Japan
Since many Japanese people were mining Bitcoin even when the cryptocurrency had little value, Japan has always been at the forefront of adoption of blockchain and Bitcoin. Mt. Gox, based in Japan, was the first and most well-known Bitcoin exchange until it was hacked and shut down.
The failure of Mt. Gox prompted the government to take steps to safeguard consumers and maintain its leadership position in the global cryptocurrency market. The Japanese government gave seven mayors NFTs in 2022 in recognition of their accomplishments, giving the technology more official status and encouraging its adoption.
Nigeria
According to a Google Trend data analysis, Nigeria’s adoption of blockchain and cryptocurrency had clearly increased since the crypto market crisis in 2022, when the country became one of the most crypto-curious nations. According to a report published by Chainalysis, a provider of crypto data analysis, it also ranked among the best nations with a high global adoption index for cryptocurrencies.
High inflation and the depreciation of the country’s fiat currency are accelerating the adoption of digital assets, presenting the Nigerian population with an uncertain domestic situation. The goal of the government is to set up a fair regulatory framework that will help innovation and protect consumers at the same time.
The eNaira, a blockchain-based central bank digital currency (CBDC) pegged to the Nigerian naira, was introduced by the Central Bank of Nigeria in October 2021. Along with Jamaica and the Bahamas, Nigeria is one of the few nations that has fully implemented a CBDC.
