Countries lead blockchain adoption for various reasons, including recognizing its potential to transform multiple sectors of the economy, promoting in
Countries lead blockchain adoption for various reasons, including recognizing its potential to transform multiple sectors of the economy, promoting innovation and economic growth, and creating a favorable regulatory environment to attract blockchain businesses.
Types of blockchain communities that lead blockchain adoption
Blockchain communities refer to groups of individuals, organizations and companies involved in developing and using blockchain technology. These communities form to share knowledge, collaborate on projects and advance the adoption of blockchain technology.
There are different types of blockchain communities, including:
- Developer communities: These groups of blockchain developers work together to create protocols, programs, smart contracts and other blockchain-based projects.
- Industry communities: Communities developed around specific industries or sectors, such as banking, healthcare and supply chain management, are known as industry communities. Members of these communities work together to create blockchain solutions that can handle the particular problems faced by their respective sectors.
- User communities: Individuals that use blockchain-based goods or services make up these communities. They exchange information and offer feedback to enhance the usability and functionality of blockchain goods.
- Investment communities: These groups have grown around blockchain-based ventures like cryptocurrency or startups that use the technology. Members of these communities engage in due diligence projects, exchanging knowledge and views about potential investment opportunities.
- Social impact communities: These groups are focused on leveraging blockchain technology to solve problems in the social and environmental spheres. Members of these communities work together to develop blockchain solutions that could create a more just and sustainable world.
Countries leading blockchain adoption
Blockchain technology can potentially boost numerous industries’ productivity, security, and transparency, reducing costs and enhancing customer experiences. Therefore, countries are investing in developing and using blockchain technology to address different societal and economic concerns.
El Salvador
El Salvador has emerged as a global pioneer in adopting blockchain technology after becoming the first nation to recognize Bitcoin as a legal tender. In June 2021, El Salvador’s government established a law recognizing Bitcoin as a legitimate payment method for goods and services alongside the U.S. dollar, the nation’s legal currency. Through this effort, the government aimed to prioritize financial inclusion in the country, where 70% of adults do not have a bank account.
The acceptance of Bitcoin (BTC) might make El Salvador a desirable location for international investors, a benefit mentioned by the country’s president, Nayib Bukele. To encourage the widespread adoption of Bitcoin, the government implemented several actions. The $150 million trust fund in the state development bank — Banco de Desarrollo de El Salvador — was approved by the legislature’s finance commission in August 2021. It was created to allow the automatic conversion of Bitcoin to the U.S. dollar, facilitating easy exchange between the two currencies for Salvadorans.
The nation debuted its Chivo (slang for “cool”) wallet in September 2021. Each wallet contained $30 in BTC. The government has established a network of crypto automated teller machines (ATMs) in El Salvador and 50 other U.S. cities, making sending money to their families easier.
In 2022, the crypto market crash affected the price of Bitcoin badly, raising concern for the Central American country that had invested so much in the cryptocurrency. However, Bukele showed no apprehension and, on the contrary, pledged to a dollar-cost average purchase of one BTC per day to confirm continued and full support for the digital asset.
Related: What is dollar-cost averaging (DCA), and how does it work?
In January 2023, El Salvador enacted the Digital Asset Issuance Law, establishing the parameters for a “Volcano Bond”— bonds backed by Bitcoin.
Portugal
Portugal has proactively created a favorable environment for blockchain and cryptocurrency startups. The nation has actively used blockchain technology in public services, healthcare and supply chain management. The Blockchain Panorama platform — which intends to encourage information exchange and cooperation among participants in the blockchain business — was introduced by the Portuguese government in 2019.
Since then, Bitcoiners and crypto enthusiasts have flocked to the region, attracted by a pro-crypto environment offering the chance to use BTC in real life — paying bills and taxes with the cryptocurrency. Merchants’ adoption has also increased, with Spanish startup BitBase working on bringing more Bitcoin ATMs and stores to major cities.
In 2021, the Portuguese government approved a decree establishing the basic conditions for the
cointelegraph.com