Friday, December 1, 2023
  • The use of cryptocurrency and the growth of AI has boosted the adoption of Blockchain in several economies
  • Blockchain adoption has been rapidly increasing across many countries across the globe
  • We take a look at the top three countries that are leading in the adoption of Blockchain

Countries are at the forefront of blockchain adoption for a variety of reasons. They include recognition of the technology’s potential to alter several sectors of the economy, promotion of innovation and economic growth, and creation of a favourable regulatory framework to attract blockchain enterprises.

Types of Blockchain Communities

Blockchain communities are groups of individuals, organizations, and businesses active in the development and application of blockchain technology. These groups form to share expertise, collaborate on projects, and push blockchain technology adoption.

There are various forms of blockchain communities, such as:

Developer Communities: These blockchain development teams collaborate to produce protocols, applications, smart contracts, and other blockchain-based projects.

Industry Communities: They are communities formed around certain industries or sectors, such as banking, healthcare, and supply chain management. Members of these groups collaborate to develop blockchain solutions that address the specific issues confronting their respective industries.

User Communities: These communities are made up of people who use blockchain-based goods or services. They share information and provide comments in order to improve the usability and functionality of blockchain goods.

Investment communities: These communities have formed around blockchain-based initiatives such as Bitcoin or startups that utilise the technology. Members of these communities collaborate on due diligence initiatives. Furthermore, they exchange information and opinions on potential investment opportunities.

Social impact communities: These organizations are dedicated to using blockchain technology to tackle social and environmental issues. Members of these communities collaborate to produce blockchain solutions that have the potential to make the world more just and sustainable.

READ: Blockchain and Artificial Intelligence strengthening data security

Three Countries Leading in Blockchain Adoption

Blockchain technology has the potential to improve productivity, security, and transparency across a wide range of businesses. It can do that while also lowering prices and improving user experiences. As a result, countries are investing in the development and application of blockchain technology to address many societal and economic challenges.

El Salvador

The country has emerged as a global leader in blockchain technology adoption. This was after becoming the first country to recognize Bitcoin as legal cash. El Salvador’s government passed legislation in June 2021 recognizing Bitcoin as a viable payment mechanism for products and services alongside the US dollar, the country’s recognized currency. Moreover, the government hoped to promote financial inclusion in the country, where 70% of adults do not have a bank account, with this effort.

The introduction of Bitcoin may make El Salvador more appealing to international investors. This was stated by the country’s president, Nayib Bukele. The government took various steps to support the widespread adoption of Bitcoin. In August 2021, the legislature’s finance committee approved a $150 million trust fund at the state development bank, Banco de Desarrollo de El Salvador. The government intended to enable the automatic conversion of Bitcoin to US dollars, making it easy for Salvadorans to interchange between the two currencies.

Portugal

Portugal has developed a welcoming atmosphere for blockchain adoption and cryptocurrency entrepreneurs. Blockchain technology has been actively embraced by the country in public services, healthcare, and supply chain management. The Portuguese government launched the Blockchain Panorama portal in 2019 with the goal of encouraging information exchange and cooperation among blockchain industry actors.

ALSO READ: Use cases of blockchain technology in cyber security

Since then, Bitcoiners and crypto fans have flocked to the region. They are drawn by a pro-crypto climate that allows them to utilize BTC in real life, such as paying bills and taxes. Merchant acceptance has also grown, with Spanish firm BitBase working to bring more Bitcoin ATMs and storefronts to key cities.

The Portuguese government issued a decree in 2021. This created the fundamental criteria for the establishment of technology-free zones (ZLTs) to foster tech-based innovation. It entails assisting with the implementation of blockchain technologies via experimentation and testing.

Since then, the country has begun to enact more rigorous laws on crypto taxes. This in order to align with the legislation of other European countries. In 2022, the government announced the repeal of a long-standing tax provision that excluded crypto profits because they were not considered legal cash.

United Arab Emirates

The UAE government launched the Emirates Blockchain adoption Strategy 2021 in April 2018. This was in order to become a smart area, with government services and private businesses powered by blockchain for greater efficiency.

The region has earned a reputation as a digital innovation centre, and blockchain enables the government and businesses to save time, money, and effort while providing citizens with a transparent and decentralized system to utilize. The UAE government is advocating for rules that encourage metaverse and nonfungible token (NFT) marketplace innovation.

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We believe that the most important thing in the Blockchain revolution is the ability of people to understand and embrace the change. Our journalism standards – impartiality, truthfulness, transparency, and accuracy – will help you navigate this extremely dynamic world.

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