Countries are driving blockchain adoption for various reasons, including recognizing the potential to transform multiple sectors of the economy, promoting innovation and economic growth, and creating an enabling regulatory environment to attract blockchain businesses.
Types of blockchain communities driving blockchain adoption
Blockchain communities refer to groups of individuals, organizations, and companies involved in the development and use of blockchain technology. These communities form to share knowledge, collaborate on projects, and promote their adoption blockchain technology.
There are different types of blockchain communities, including:
- Developer communities: These groups of blockchain developers work together to create protocols, software, smart contracts, and other projects based on the blockchain.
- Industry Communities: Communities that are developed around specific industries or sectors, such as banking, healthcare, and supply chain management, are known as industrial communities. Members of these communities work together to create blockchain solutions that can address the specific problems faced by their respective sectors.
- User communities: Individuals who use blockchain-based goods or services make up these communities. They share information and provide feedback to enhance the usability and functionality of blockchain goods.
- Investment communities: These groups have grown around blockchain-based projects such as Cryptocurrency Or startups that use technology. Members of these communities participate in due diligence projects, sharing knowledge and perspectives on potential investment opportunities.
- Social Impact Communities: These groups focus on leveraging blockchain technology to solve problems in the social and environmental arenas. Members of these communities work together to develop blockchain solutions that can create a more just and sustainable world.
Leading countries in blockchain adoption
Blockchain technology can enhance productivity, security and transparency in many industries, reduce costs and enhance customer experiences. Therefore, countries are investing in the development and use of blockchain technology to address various social and economic concerns.
El Salvador
El Salvador has emerged as a global leader in the adoption of blockchain technology after becoming the first country to recognize it Bitcoin as legal currency. In June 2021, the government of El Salvador passed a law recognizing Bitcoin as a legitimate payment method for goods and services along with the US dollar, the country’s legal currency. Through this effort, the government aims to prioritize financial inclusion in the country, where 70% of adults do not have a bank account.
accept bitcoin (BTC) may make El Salvador a desirable location for international investors, an advantage mentioned by the country’s president, Nep Bokil. To encourage widespread adoption of Bitcoin, the government has implemented several measures. The $150 million trust fund at the State Development Bank – Banco de Desarrollo de El Salvador – was approved by the Finance Committee of the legislature in August 2021. It was created to allow automatic conversion of Bitcoin into US dollars, facilitating easy exchange between the two currencies for Salvadorans .
The nation first launched the Chivo (slang for “cool”) wallet in September 2021. Each wallet contained $30 in BTC. The government has created a network of cryptocurrencies Automated teller machines (ATMs) in El Salvador and 50 other US cities, making it easier to send money home to their families.
In 2022, the collapse of the crypto market affected the Bitcoin price badly, arouse anxiety For the Central American country that has invested a lot in cryptocurrency. However, Bukele did not show any concerns, on the contrary, he pledged an average cost of buying 1 dollar for 1 bitcoin per day to confirm the continued and full support of the digital asset.
Related: What is dollar cost average (DCA), and how does it work?
In January 2023, El Salvador enacted Digital Asset Issuance Actsetting the standards for a “volcano bond” – a Bitcoin-backed bond.
Portugal
Portugal has proactively created a favorable environment for blockchain and cryptocurrency startups. The nation has actively used blockchain technology in public services, healthcare, and supply chain management. The Blockchain Panorama platform – which aims to encourage information exchange and collaboration between participants in the blockchain business – was introduced by the Portuguese government in 2019.
Since then, fans of bitcoin and cryptocurrency They flocked to the areaAttracted by a pro-cryptocurrency environment that provides an opportunity to use BTC in real life – pay bills And taxes with cryptocurrency. Merchants’ adoption has also increased, as Spanish startup BitBase is bringing more bitcoin ATMs and convenience stores to major cities.
In 2021, the Portuguese government approved a decree defining the basic conditions for Creation of Technology Free Zones (ZLTs) To promote technology-based innovation. It involves helping implement blockchain technologies through experimentation and testing.
Since then, the country has started adopting stricter regulations on crypto taxation to follow the legislation of other European countries. In 2022, the government announced a reversal long term tax law which excluded cryptocurrency gains based on the assumption that they are not legal tender.
Singapore
Singapore a A leading country in blockchain adoption, with the government investing heavily in blockchain research and development. Due to its favorable regulatory climate, Singapore has become a hotspot for Initial coin offerings (ICOs)with many blockchain companies choosing to merge there.
The country’s financial regulator, the Monetary Authority of Singapore (MAS), is leading the development of governance structures, technical standards, and infrastructure in the country to encourage the adoption of blockchain and cryptocurrency. Its primary role is to monitor and mitigate risks in the crypto industry without hindering technological innovation.
In 2021, the Independent Backup Crypto Exchange conducted a survey Across all demographics of Singaporeans, revealing 43% own cryptocurrency. in 2022, New survey by the same company It highlighted that the residents’ interest and confidence in the future of cryptocurrencies and blockchain was very high, with 58% of the residents interviewed seeing Bitcoin as an investment asset and store of value.
Malta
Together with Singapore, Malta has begun to promote blockchain adoption As early as 2017, when it gained a reputation as a “blockchain islandAfter drafting some industry regulations to accelerate the growth of blockchain technology. In 2018, the Maltese Parliament passed three laws that provide a regulatory framework for blockchain and cryptocurrency to regulate initial coin offerings, digital assets, digital currencies and related services.
With regard to the taxation of crypto assets, Malta has specified that electronic money and utility tokens are not included as capital assets in the income tax law, excluding them from capital gains tax. In contrast, securities and virtual financing assets are considered capital assets and are subject to taxes.
At the end of 2021, the Maltese government included Blockchain and artificial intelligence (AI) within the business directory’s expectations and framework of commitment to enhance the technology. The aim is to incentivize international companies to set up in Malta to test and operate blockchain technology.
Malta has not yet achieved the status of a “blockchain island”. Constant and increasing international scrutiny of the island’s domestic political and economic events has led its leaders to pursue policies that are more conservative towards the industry than those previously promoted.
However, many companies that focus on blockchain and crypto are thriving. For example, companies that use blockchain in the supply chain of products, such as wine and olive oil, are a tangible reality on the island.
Related: How is blockchain technology used in supply chain management?
United Arab Emirates (UAE)
In April 2018, the UAE government launched the UAE Blockchain Strategy 2021 to become a smart region, with government services and private businesses powered by the blockchain for greater efficiency.
The region has long been known as a hotspot for digital innovation, and blockchain allows government and companies to save time, money, and effort while allowing people to use a transparent and decentralized system. The uae government is pushing for policies that welcome innovation in the metaverse and Non-fungible token (NFT) markets.
Related: Cryptocurrency regulation in the UAE and Virtual Asset Law in Dubai
The remaining emirates that make up the UAE are aligned with Dubai and Abu Dhabi in implementing initiatives and regulations to boost blockchain and crypto businesses in the region. In February 2023, A.J Emirate of Ras Al Khaimah It announced the creation of the first free economic zone entirely dedicated to virtual assets and digital companies, and called it RAK Digital Assets Oasis, or RAK DAO.
other countries
The digital asset market – mainly blockchain and cryptocurrency – is growing all over the world. To neglect some other regions that have become industrial hotbeds of innovation and investments would be unfair. Here are the other top countries where adoption has grown exponentially in the past two years, encouraged by a crypto-friendly approach.
United States of America
The United States is home to the largest ATM crypto network. He is the largest shareholder Bitcoin hash rate, which means that blockchain and crypto adoption is thriving in the country. While there is still a file consistent legal approach At the state or federal level, the government is trying to develop a more granular regulatory framework for cryptocurrencies to encourage adoption and investments.
Switzerland
As Lugano aims to become the cryptocurrency capital of Europe, Switzerland It is one of the most exciting countries to watch in the blockchain space. The small European country welcomed blockchain and crypto payments as early as 2016, with a pro-crypto regulatory framework encouraging companies to settle and invest in the region.
South Korea
South Korea has seen a growing interest in Blockchain and cryptocurrency, to become an important player in adoption in Asia. The country has taken a proactive but cautious approach to regulating digital assets to ensure the safe operation of the market for both consumers and business people. Careful attention is paid to Anti-money laundering and combating the financing of terrorism to ensure market transparency and security.
Japan
Japan has always been in At the forefront of Bitcoin and blockchain adoption Since it was many Japanese Bitcoin mining Even when the cryptocurrency has little value. The first and most prominent Bitcoin exchange was Japan’s Mt.Gox until it was hacked and ceased operations.
The failure of Mt. Gox government in taking measures to protect consumers while maintaining a leading role in the world’s cryptocurrency market. In the year 2022, the Japanese government Seven mayors awarded NFTs For their achievements, giving more formal status to the technology and encouraging its adoption.
Nigeria
Google trend Data analysis reveal that adoption Blockchain and cryptocurrency It has seen a clear upward trend in Nigeria, especially after Crypto market crisis 2022 When the country emerged as one of the most curious countries for cryptocurrency. It also emerged among the top countries with a high global crypto adoption index, according To a report from cryptographic data analytics firm Chainalysis.
The Nigerian population faces an uncertain domestic situation, with rising inflation and the depreciation of the country’s fiat currency fueling the acceleration of digital asset adoption. The government seeks to implement a fair regulatory framework to protect consumers while encouraging innovation. In October 2021, the Central Bank of Nigeria launched eNaira, a blockchain-based central bank digital currency (CBDC) pegged to the country’s national currency, the naira. Nigeria is one of the very few countries that fully release CBD for the population, along with the Bahamas and Jamaica.
