Some countries are opening doors to adopt cryptocurrencies in a larger scale
Different countries around the world are facilitating the use of cryptocurrencies for monetary operations.
Estonia, known already for being a technologically leading country, deeply analyzed and proposed, is set to issue a new legal cryptocurrency, named Estocoin, that would be recognized as a legal currency. Kaspar Korjus, Managing Director at e-Residency, posted in a Blog that the country would be the first country in the world with an ICO that would help with the development of a truly virtual nation. Vitalik Buterin was involved in the project; he supported the idea and gave feedback about how the Estocoin would work.
Estonia was the first country to offer e-Residency for non Estonians. In this way, people from all over the globe could apply to become an e-Resident and be able to invest in Estonia in a simplified way. However, the problem was money flow. With a cryptocurrency issued in Estonia, the dream of a borderless nation would be nearer for the e-Residents giving the possibility to invest in a much easier way. All this will do is produce more investment and the result will be a wealthier nation.
The ECB immediately fired back arguing that the only legal currency in the Eurozone is the Euro and that countries do not have the right to issue any cryptocurrency that could compete with the Euro.
Even after all that happened, since earlier this month until now, with China, the ICO’s and cryptocurrency exchanges, the Chinese government is one of the first countries interested in developing a cryptocurrency for massive use.
The Chinese government appreciates to have everything under control, and the cryptocurrencies were making it all a little bit difficult (if not impossible) to control money flow. The first move that China took in that direction was to ban ICO’s from operating on its soil, and later on, shut down local cryptocurrency exchanges. The second move, but not official yet, was to develop a new cryptocurrency that would have all the benefits of cryptos, but issued by a national state. It means that the cryptocurrency developed by China is not decentralized and anonymous, that’s to say something excellent to keep Chinese population as well as money under control and in the economy.
A notorious difference with Estonia is that China does not have a supranational entity, like the European Union / Eurozone that would limit the power of the Communist government in launching a cryptocurrency on its own, making it easier for China to be the first government to issue its cryptocurrency.
As in a competition to see who offers the most innovative proposal regarding cryptocurrencies, Khalid Al Rumaihi, Chief Executive of the Economic Development Board of Bahrain, said that Bahrain’s Finance Ministry could issue bonds in Bitcoins, according to The Hindu Business Line.
This tiny island, located in the Middle East region, is trying to be a top destination for Bitcoin and cryptocurrencies. Khalid Al Rumaihi stated that Bahrain is “opened for Bitcoin (…) and Business,” showing a deep interest in establishing a friendly atmosphere for crypto investors in the region and the world.
A private investment carried out by Lady Michelle Mone in Dubai was the first of its kind. For just 30 Bitcoins you could buy a luxury apartment in the UAE’s most famous city. In a country, where Bitcoin has no specific legal situation, cryptocurrencies are starting to flourish. In 2014 the first Bitcoin exchange was settled in the UAE and since that moment things didn’t change that much. Even though, cryptocurrencies are trying to search for their place, and they are finding it through private investors bringing the currency into the country.
In the United States and South Africa some retailers are trying to test payments through Bitcoins. As it was presented some days ago in Bitcoin News Roundup, in South Africa, one of the most important supermarkets tried to use Bitcoin in one of its stores through the payment platform Electrum. Even if that option for the clients will not be available in the near future until a framework is set up around Bitcoin in the country, it has already been tested and could be implemented swiftly.
Estonia, China and Bahrain are trying to innovate with blockchain technology in a subject in which not all the countries are yet prepared to participate. Different approaches to similar questions and cautious reactions are the norm at this moment. But we can appreciate a bigger interest in cryptocurrencies and an intention from states to make them arrive to more people.
Countries that don’t really try to regulate or motivate the use of cryptocurrencies are seeing an increase inside their borders, like in the UAE, USA or South Africa. Situations that bring more regulations from states and prohibitions in the use of cryptocurrencies are seeing that the reaction in the public is inverse: more and more people are realizing about the benefits of switching into cryptocurrencies.