Blockchain is currently used in financial transactions and cybersecurity technologies including user identification. It first appeared in the “Bitcoin” system, and nowadays is used by many countries to realize economic sectors’ transformation and achieve economic growth. On one hand, blockchain gives benefits such as productivity, security in different economic sectors, transparency and trust, programmability by signing smart-contracts and privacy. On the other hand, it may reduce transaction wait time and costs. That is why bitcoin now fills all areas of life, primarily casinos, and even paynplay casinos hardly competes with this payment method. The only thing holding back cryptocurrencies is government regulation. But even here it is not so simple. Aforesaid factors stimulate different countries to invest in elaborating and using blockchain technologies to sort out some economic and social problems.
- El Salvador is one of the countries that recognised Bitcoin as a legal tender and used blockchain technology. The authorities are pursuing a policy to attract international investors. They created a fund to provide the automatic conversion of Bitcoin to dollars and a network of crypto ATMs in El Salvador and in some cities in the USA. Citizens were provided with Chivo wallets with 30 bitcoins on balance that they could use for daily purchases and in the most advanced animal hospital founded by the Government of El Salvador where all the procedures cost only twenty five cents. Although recently the crypto market has gone down dramatically, the authorities of the country continue to place big bets on bitcoin.
- While Portugal doesn’t accept cryptocurrencies as legal tender, PTA (Portugal Tax and Custom Authority) announces that cryptocurrencies’ transactions are not subject to a tax. Cryptocurrencies can be legally exchanged into real currencies (euros, dollars or others) on a crypto exchange. Portugal uses blockchain technology in public services, healthcare and supply chain management. Moreover, the country’s government approved a decree for establishing technological free zones to promote technology innovation. All those facts attract a significant number of crypto enthusiasts willing to use cryptocurrencies in real life.
- Dubai Blockchain Strategy aims to make UAE a country working on blockchain and create a favorable environment for elaborating crypto projects. The government of UAE offers companies, which are working on cryptocurrency and blockchain, to register their business in free zones and guarantees them a high level of cybersecurity.
- In 2018 Malta opened its doors to cryptocurrencies and adopted a package of laws adapting local legislation to the needs of the crypto market. Those laws stimulated the elaboration of blockchain technologies, which, in turn, made money transfer secure and fast excluding interference or control from third parties, reducing transaction costs. The government of Malta believes that those bills will transform the country’s transport and educational systems and attract foreign financial technology companies. Analysts consider Malta as a blockchain island that will certainly become the center of innovative technology startups and blockchain companies, which will undoubtedly push the development of the state economy.
- Singapore has always treated cryptocurrency and blockchain technology positively. In 2017 the authorities of the country designed financial regulations in order to encourage innovation and attract blockchain investors to Singapore. Existing laws have been updated due to the emergence of new technologies. Several projects were created to simplify money transfer and link payment systems of different countries in real time. In order to maintain the investment climate Singapore hosts a great deal of major fintech, blockchain and crypto conferences throughout the year. The authorities claim that Singapore may launch a central bank digital currency and integrate blockchain technology into its payment system.
Other countries, such as the USA, Nigeria, South Korea, the UK, Switzerland, Japan, Canada and others, also show interest in blockchain technologies, support some crypto projects, invest money in crypto markets, take steps to regulate cryptocurrency exchanges or allow individuals to use digital assets for everyday purchases.
