5 Countries Leading the Blockchain Adoption Race
The adoption of blockchain has not been equal among the different countries of the world. Some nations have made great strides in the blockchain space while others are still playing catch-up. Here’s a look at the top 5 countries leading the blockchain adoption race.
Cryptocurrencies are currently on the receiving end of enormous regulatory scrutiny. Law enforcement agencies and regulatory bodies around the world are hard at work trying to develop strict guidelines for the safe and reliable distribution of these digital assets.
On the other hand, blockchain systems, which act as the underlying technology layer for cryptocurrencies, have gained widespread use. Thanks to its transparent, immutable and decentralized data storage capabilities, blockchain technology can and has been implemented across business verticals, greatly improving efficiency.
However, as with any new technology, the use of blockchain has not been equal among the different countries of the world. Some nations have made great strides in the blockchain space while others are still playing catch-up.
Here’s a look at the top 5 countries leading the blockchain adoption race.
Malta, the blockchain island
Malta’s blockchain journey began way back in 2017. At the time, the small island nation had already begun drafting regulations to accelerate the growth and adoption of blockchain technology. The following year, the Maltese Parliament set up a regulatory framework for the blockchain industry.
This framework included 3 laws that regulated ICOs, digital assets, digital currencies and other related verticals. A couple of years later, in 2021, the Maltese government issued a statement welcoming international companies to test and operate Blockchain technology.
These initiatives have borne fruit for the island nation, with blockchain systems disrupting several of the government’s traditional processes. For example, Malta was the first country to implement a blockchain-based IP registry. This was followed by blockchain-based estate planning and copyright systems. Malta even implemented a blockchain-based supply chain system for the certification of food produced on the island of Gozo.
China moves ahead with blockchain despite crypto ban
Despite the crypto ban in 2021, China has made great strides in the blockchain space. In the same year that it banned cryptocurrencies, the country’s two main technology regulators, the Ministry of Industry and Information Technology (MIIT) and the Cyberspace Administration of China (CAC) issued a statement saying China was looking to use blockchain across a range of industries by 2030 .China seems to be working hard to achieve this mission.
In fact, by July next year, the country had nearly 1,900 blockchain-based companies registered with the CAC. These companies were spread across a wide range of business verticals, including agricultural, financial, legal and intellectual property protection projects.
Most recently, the Chinese Ministry of Science and Technology approved the establishment of the National Blockchain Technology Innovation Center (NBTIC). Based in Beijing, NBTIC will focus its research on blockchain software, hardware and its fundamental theories. It will also explore the utility of blockchain technology for industrial applications, national economy and personal livelihood.
Singapore is emerging as a blockchain and crypto hub
As one of the most technologically equipped nations in Asia, Singapore is perceived as a hub for crypto innovation and blockchain development. With open support from the Singaporean government, the country’s regulations are geared towards supporting blockchain initiatives.
Global eTrade Services (GeTS) is a leading provider of eGovernment products and services that launched Open Trade Blockchain (OTB), an extensible blockchain service. OTB is the region’s first ever cross-border blockchain platform, aimed at making global trade secure, transparent and efficient.
Blockchain footprints can also be seen in the education industry of the country. A public institution, Ngee Ann Polytechnic (NP), has become the first educational institution to verify the authenticity of NP diplomas using blockchain technology. The institute also uses blockchain to keep track of academic records and educational history.
The Public Service Division of Singapore has also announced that it will soon adopt blockchain technology to track records on Gebiz (the Singapore government’s one-stop e-procurement portal). The technology will also be used to track government officials’ career moves and improve the audit process.
Japan is rapidly rising in the ranks
Japan has ties to the crypto and blockchain industry dating back to 2010. This was the year when one of the world’s first and largest crypto exchanges, Mt. Gox, was launched. A few years later, in 2017, the country also passed a law recognizing Bitcoin as legal tender. Since then, the country has taken giant steps to become a leader in the blockchain space.
This is characterized by the country’s spending in this sector. For example, Japan’s spending on blockchain technologies has increased by 104 percent over the past few years, from $40 million in 2017 to $700 million by the end of 2021. This figure is expected to continue growing, eventually reaching $8 billion by 2026 , according to a report from EarlyWorks, a Japanese blockchain developer.
The Japanese city of Fukuoka has also partnered with the blockchain network, Astar, in an effort to become a web3 hub. The plan is to create a national special strategic zone that mimics Silicon Valley in the west. To realize this vision, Astar has partnered with some of the largest technology and financial firms in the country, including Microsoft Japan, Amazon Japan, Dentsu, Accenture Japan, SoftBank, PwC Japan, etc.
The UAE is also an important base for blockchain
Back in 2016, the UAE announced the Dubai Blockchain Strategy. The aim of this project was to carry out all government transactions using blockchain technology. Two years later, this initiative was followed by the Emirates Blockchain Strategy 2021. Through this initiative, the government aimed to route 50 percent of transaction through blockchain-based technologies by 2021.
Both initiatives have paid dividends as the UAE is now home to several of the largest blockchain companies in the world. One of the 7 emirates of the UAE, Dubai has quickly emerged as a crypto and blockchain hub. Some of the world’s biggest crypto companies, including Binance and Kraken, have secured licenses to operate in the Gulf state. Dubai will also host the prestigious World Blockchain Summit this year. Another emirate, Abu Dhabi, announced the launch of Hub71. This will be a dedicated Web3 ecosystem with a $2 billion fund committed to web3 start-ups and blockchain technologies.
Conclusion
Blockchain has the power to disrupt almost every sphere of life. That’s why so many of the world’s powerhouses are rushing to implement this technology across business verticals and government processes. Therefore, even though cryptocurrencies and digital assets are currently facing heat from regulators, blockchain technology continues to see additional adoption.
