Find out which Countries Around the World are Embracing Blockchain Technology for Economic Growth and Innovation
Several countries are embracing blockchain technology and leading the way in adoption including the United States, UK, China, Singapore, Switzerland, Japan, United Arab Emirates, South Africa and Portugal.
These countries are at the forefront of blockchain adoption, providing innovative solutions, encouraging supportive regulations and more.
For various reasons, governments around the world are embracing the potential of blockchain technology to revolutionize multiple industries, further innovation, and foster economic prosperity. In addition, many are creating a regulatory landscape favourable to businesses operating in the blockchain space.
Blockchain technology has the potential to dramatically improve productivity, security, and transparency in numerous industries, while simultaneously reducing costs and improving customer experiences. Consequently, many countries are investing in the development and utilization of blockchain technology to address societal and economic issues.
The following countries are not ranked in any particular order.
United States
The United States is taking the lead in embracing blockchain technology. From setting up research associations to ATMs exclusively for Bitcoin, the government is aiming to make it a part of their standard operating system. States like Montana and Texas are considered the most friendly locations for blockchain-based businesses, with almost 40% of the entire blockchain start-up industry present in the US.
A recent report also reveals that the US Federal Government is looking to increase its investment in blockchain development ten times more than before. Initially being 10.7 million dollars in 2017, it is expected to reach 123.5 million dollars by 2021. Many US-based financial institutions are investing in blockchain technology to make their operations more efficient. JP Morgan Chase, for example, disclosed in April 2019 that 200 different banks had adopted its approved version, IIN (interbank information network), to support Ethereum Blockchain.
Meanwhile, investment banking giant Goldman Sachs is reportedly planning to launch its own stable coin.
United Kingdom
The United Kingdom is second in the list of countries that have the most blockchain-based companies in the market. The regional authorities are working on guidelines to counter identity fraud and slow financial services with the implementation of blockchain technology. In August 2016, the government launched BaaS (Blockchain-as-a-Service) under the ‘Innovate UK’ project. This is used to process student loan and welfare payments and retired individuals receive their guaranteed payments via blockchain-enabled mobile apps from the Department of Work and Pensions. According to a report, ICO investments in the UK increased by 300%, rising from 50 million USD in 2016 to 150 million USD by 2018.
In addition, between 2017 and 2018, more than 500 million Euros were invested in British blockchain start-up companies. The UK’s Cryptocurrency team is aiming to regulate and promote development, hoping to be the mediator in a city that is now home to the second-most blockchain businesses in the world.
China
Despite the fact that China has imposed restrictions on crypto mining and cryptocurrencies, it has not diverted from exploring the use of blockchain-based services. The Chinese government is a strong advocate of blockchain technology and appears to be the region’s largest and most influential promoter in the world. The government is doubling down on applications of distributed networks with the introduction of an advanced blockchain industrial framework, as the nation looks to incorporate the technology into its financial and developmental strategies.
China is aiming to establish industrial standards, intellectual property protections, and tax incentives to support blockchain-based businesses. China has applied blockchain from its educational system to legal fields; the country has made some impressive moves to promote blockchain-based innovations. It actively supports its own smart contract platforms such as TRON, NEO, VeChain, and Qtum. The officials in China are open to the idea that blockchain is possibly the most strategically significant early global innovation.
The crackdown issues in China primarily pertain to areas where activities related to blockchain technology violate specific governmental regulations and laws such as fraudulent behaviour, token sales, especially to retail investors, and other offenses, such as illegal money laundering and evasion of capital controls.
Singapore
Singapore is renowned as an innovative hub for blockchain and cryptocurrency due to its advanced technology. With the government’s support, the country has implemented regulations to promote blockchain initiatives. Global eTrade Services (GeTS) recently unveiled Open Trade Blockchain (OTB), the first cross-border blockchain platform in the region, which is designed to make international trade more secure, transparent, and efficient.
Ngee Ann Polytechnic (NP), a public polytechnic in Singapore, is the first educational institution to use blockchain to authenticate their diplomas, as well as for keeping track of academic records and educational history. Furthermore, Singapore’s Public Service Division has declared its plans to implement blockchain technology for tracking records on Gebiz, the Singapore Government’s one-stop e-procurement portal. It will also be used to monitor the career paths of government personnel and increase the effectiveness of auditing.
Switzerland
Switzerland has become a major hub for blockchain activity, particularly with the rise of Zug, a small Swiss town with a population of 29,000. It has become a “crypto valley,” with over 450 blockchain-related start-ups and organizations, including the Ethereum Foundation. The country offers generous regulatory and tax treatment for blockchain start-ups, and has a low level of corruption and efficient bureaucracy.
In addition, Swiss citizens have a strong understanding of blockchain technology. The Swiss parliament proposed Bitcoin as a foreign currency, further increasing activity related to cryptocurrency in the country. It is anticipated that blockchain will be introduced to financial services, insurance, logistics, energy, and healthcare in the near future, and this has attracted investors. In most recent news, it was reported that Facebook was considering plans to launch its own stablecoin, known as Libra. The social media giant then established a subsidiary in Geneva called Libra Networks, which focuses on the launch of the stablecoin.
Japan
Japan’s involvement in the cryptocurrency and blockchain industry began in 2010 when Mt. Gox, one of the world’s first and largest crypto exchanges, was launched. Two years later, in 2017, Japan recognized Bitcoin as a legal tender, launching the country on a path to becoming a leader in this space. Their spending in the sector has seen a dramatic increase over the last four years, from $40 million in 2017 to an estimated $700 million by the end of 2021. According to EarlyWorks, a Japanese blockchain developer, spending is expected to continue growing and reach $8 billion by 2026.
In an effort to become a web3 hub, the Japanese city of Fukuoka has partnered up with blockchain network Astar to create a National Special Strategic Zone similar to Silicon Valley. Alongside Astar, several prominent tech and finance companies, such as Microsoft Japan, Amazon Japan, Dentsu, Accenture Japan, SoftBank, and PwC Japan, are helping to turn this vision into a reality.
The failure of Mt. Gox inspired the government to take measures to protect consumers while maintaining a leading role in the world’s cryptocurrency market. In 2022, the Japanese government awarded seven mayors with NFTs for their achievements, granting more official status to the technology and encouraging its adoption.
United Arab Emirates (UAE)
In April 2018, the UAE government unveiled their Emirates Blockchain Strategy 2021, with the goal of becoming a smart region and integrating blockchain technology into both government services and private businesses. This initiative aims to provide citizens with a faster, more efficient, and more transparent decentralized system.
Additionally, the government is promoting policies that encourage innovation in the metaverse and non-fungible token (NFT) markets. The UAE continues to be a leader in digital innovation and progress.
South Africa
In 2018, the South African Reserve Bank (SARB) partnered with seven different commercial banks to launch the Blockchain-based project, “Khoka”. This interbank framework was designed to process daily payments with complete privacy and certainty in real-time. After the project’s success, SARB announced the commencement of phase two of the project by using tokenized currency in a Minimum Viable Product (MVP) to issue, view and settle debt instruments on Distributed Ledger Technology (DLT). In Khoka phase 2, participants will be able to purchase debt instruments with a wToken (wholesale digital settlement token) and a wCBDC (wholesale CBDC). The wToken can be viewed as a securely distributed stablecoin that is used for interbank settlement.
Portugal
Portugal has taken a proactive stance on creating a favourable climate for blockchain and cryptocurrency startups. They have already adopted blockchain technology for public services, healthcare, and supply chain management. In 2019, the Portuguese government launched the Blockchain Panorama platform, a platform meant to foster information exchange and collaboration amongst blockchain business participants.
This pro-crypto environment has proven attractive to Bitcoiners and crypto aficionados, who can now use BTC to pay bills and taxes in real life. There has also been a notable increase in merchants’ adoption, with Spanish start-up BitBase working on increasing the number of Bitcoin ATMs and stores in major cities. In 2021, the Portuguese government issued a decree establishing the basic conditions for the creation of technological free zones (ZLTs).
This decree has been designed to promote and facilitate the implementation of blockchain technologies, including experimentation and testing. In light of other European countries’ laws, the Portuguese government has also set up stricter regulations on crypto taxes. In 2022, they reversed a long-standing tax law that excluded crypto gains, which were previously assumed to be illegal tender.
English