Blockchain technology has improved substantially in the past years since more cryptocurrencies entered the market. Despite the fact that it’s a newer method for keeping data safe and maintaining networks, blockchain can benefit industries more by ensuring transparency, security and improved traceability. The ecosystem is also helping cryptocurrencies emerge and develop in a safe system. For example, if you want to buy Bitcoin, the blockchain’s technology allows Bitcoin to operate without a central authority or other official controlling systems. Therefore, blockchain provides security by reducing risks and minimizing processing and transaction fees.
Blockchain is slowly included in various industries, such as healthcare, education, real estate and banking. Many companies have switched to the blockchain as it’s even more affordable than current safety and data solutions. The only issue with this improvement is the lack of personnel able to maintain such a network. Such a problem is to be solved only when cryptocurrency awareness is spread among more countries, and worldwide adoption will occur. Luckily, some countries are actively working towards this goal, and here are some of them.
El Salvador
El Salvador is the first country to accept Bitcoin as legal tender fully. Now, along with the US dollar, which is the nation’s currency, you can pay with Bitcoin for any good and service since 2021. Given that more than half of the country’s adults don’t have a bank account, the law aimed to provide more financial inclusion and help the economy. It’s also a method to attract more international investors.
However, what experts showed and became true after a while is that El Salvador wasn’t ready for this change. The country’s economy was already collapsing, and it needed something else to help support its citizens. The president’s approach has also raised concerns about the reliability of his actions. Despite the $150 million fund made to the state development bank for the automatic conversion of Bitcoin to the US dollar, the country has lost more than $70 million in regard to public finances as businesses and locals avoided carrying out Bitcoin transactions.
The conclusion to this action? A country needs to adopt Bitcoin and blockchain technology only when fully prepared.
Portugal
Portugal has yet to adopt Bitcoin as a legal tender, but it has facilitated the use of blockchain for developers, investors and regular users. The Portuguese government invested in such a project back in 2019, called the Blockchain Panorama platform, through which business participants and partnerships are encouraged to exchange information and cooperate freely. The nation was flooded with investors and people who started paying bills and taxes with crypto as more merchants included this payment option.
In 2021, the government released another crypto-related project that would encourage technological free zones that aim to promote tech-based innovation for businesses that want to start crypto-based programs in Portugal. Companies will benefit in a more accessible way from blockchain technology, so they can leverage product testing more easily or get assistance from official entities.
Singapore
Singapore is known as a hotspot for initial coin offerings (ICO) due to its wide acceptance of blockchain technology as well as investments in research and development. Singapore has approved a favorable regulatory climate that actively encourages blockchain and cryptocurrency adoption. The Monetary Authority of Singapore (MAS) monitors and mitigates crypto risks while encouraging technological innovation.
In recent surveys, it has been shown that almost half of Singaporeans hold cryptocurrencies. While some of them save Bitcoin for future use, others plan to use it to purchase goods and services. Bitcoin is the most popular coin citizens own, with Ethereum, Dogecoin and Cardano following. Other reports showed that people’s interest in using cryptocurrency and learning more about it had grown considerably, which goes hand in hand with the government’s spending.
However, one challenge Singapore must overcome is the price volatility that contributes to the lack of consumer protection and regulatory framework.
Malta
Malta started being interested in crypto in 2017 when it drew investors’ interest with certain industry regulations that would promote the growth of blockchain technology. One year later, three laws were passed by the Maltese government that would provide a legal framework for blockchain technology, digital assets and currencies. The laws have even ensured that digital money and utility tokens Are not taxable, but securities and virtual financial investments are subject to taxation.
In 2021, another plan was introduced to promote blockchain and artificial intelligence. Therefore, international companies were incentivized to start their businesses in Malta and use blockchain for testing and operating purposes. And despite political and economic events slowing down the adoption of cryptocurrencies and blockchain, many organizations are actively working in Malta as they use blockchain for one of the most thriving industries on the island, the production of wine and olive oil, of which the supply chain process is maintained and managed by this technology.
United Arab Emirates
UAE has always been the center of innovation and technology, so of course, it has approached blockchain too. In 2018, the government launched the Emirates Blockchain Strategy for government services and private businesses to promote the development of a smart region.
Blockchain would be used to bring efficiency and growth to companies, which has been encouraged even more since this year when the first free economic zone will be created in UAE for virtual assets and digital companies.
The UAE is also planning to become a technological metaverse center for NFTs to be available in unique marketplaces. What’s best is that investing in cryptocurrencies in Dubai is tax-free on profits, but you need to become a resident to be able to invest there and benefit from these aspects legally.
Final thoughts
Blockchain adoption is the future, and we can’t deny it. Unfortunately, crypto and related industries are seen as troublemakers, and the case of El Salvador shows what happens when rushed decisions are taken for a country whose economy is on the ground. But in time, with the right investments in educating regular users and the legal framework, cryptocurrencies and blockchain will become the norm.
