MARKNetwork Blockchain: Governments and Blockchain adoption
Are governments adopting Blockchain?
Short summary of the article:
“Do not get left behind”
»Governments stood strongly against the adoption of blockchain. But as the technology fortified its stance, the government agencies started spotting opportunities. This article gives you a comprehensive idea about which governments are forging ahead in the blockchain space and how innovative are they being? «
Multiple untapped and unexplored opportunities of blockchain space are yet to be uncovered. If MarketsandMarkets reports are to be trusted, the blockchain industry is about to exhibit a CAGR of 80.2% in the next 4 years to become a $23.3 billion industry.
In primary research, the prime sectors that would drive the growth are expected to be retail, eCommerce, government bodies and IT industry.
Yes, it is true that the Governments are now trusting blockchain and are ready for the adoption.
Thales Data Threat Report of 2019 revealed staggering results of IDC’s survey. Out of the 1,200 executives, 100 were heading the U.S. Federal Government departments. According to the results around 47% of government officials were already using blockchain to encrypt the databases as the existing system is devoid of a robust encryption layer.
Although Estonia became the first country to test blockchain in 2008, it took the country 4 years to move the project to production and use it for protecting national data. But things are moving at a faster pace now. The research and adoption rates have grown. Various national governments are looking forward to adopting the technology to render transparency, security, and global accessibility to its existing setup.
With the growing proliferation rates of blockchain, it needs to be kept in mind that very soon our nations will be embracing the blockchain innovation. Here are the comprehensive details and data about the governments that will be using blockchain platforms in 2019:
United State of America
The initial resistance to blockchain has faded out and the US federal government is readily embracing the blockchain technology. As per the April 2018’s statistics by IDC Government Insights, the federal government is about to increase its spend on the blockchain by 1,000%.
IDC the report claims that apart from the federal, the state and local governments are expected to contribute $48.2 million by 2022 towards blockchain adoption. The Defense Department projects to double its blockchain spend and surpass $40 million by 2022.
In Feb 2019, United States of America housed 1,770 blockchain startups which amounts to be almost 40% of the world’s share. After recognizing the potential benefits of blockchain in public sectors, states like Texas and Montana have turned to be the most blockchain friendly states.
It is only because of the federal government’s optimistic attitude towards cryptocurrency that American giants like Microsoft, Subway and Overstock accept the new age digital currencies. Over 2,000 bitcoin ATMs are spread out across the US which is around 55.9% of the world’s total BATM count indicating a strong fortification of cryptocurrency and blockchain adoption by the US government.
What happened in 2019 in the U.S.A.?
With the blockchain space heating up in the US, government agencies are expanding their budgets on analyzing how blockchain can solve the existential challenges. In May 2019, IRS, ICE and FBI together paid more than $6M for blockchain analysis.
According to Google Trends, 2018, over the last 12 months, Malta has shown the highest interest in blockchain. It earned its title “The World’s Blockchain Island” from it’s Junior Minister for Financial Services, Digital Economy and Innovation, Silvio Schembri because Maltese Government looks at blockchain technology as a long term disruptor.
On 4th July 2018, the parliament of Malta passed three bills that established its first regulatory framework for DLT, blockchain and cryptocurrency.
The first law is the MDIA Act (Malta Digital Innovation Authority Act) which outlines the governance arrangement for ensuring the credibility of the DLT platforms. The second law that deals with the exchange set up and operations is known as ITAS Act (Innovative Technology Arrangement and Services Act) and the third law establishes the governance policies around ICOs, wallet providers and cryptocurrency exchanges.
For taking the technology first approach towards Blockchain, Malta has become a country that where blockchain consumers and investors are being safeguarded by laws. According to the prime minister of Malta, these regulations will create a welcoming environment for investors and tech innovators to drive economic growth of Malta for the coming years.
What happened in 2019 in Malta?
On May 23rd 2019, blockchain scholarships worth ($179,000) were awarded to 19 students by Maltese Government.
The United Kingdom has been a slow adopter of technology like a cloud but in the blockchain landscape, UK is already ahead of the majority on the nations. In 2016 around 173,000 cases of personal information theft were recorded cases and as per Reform, the London-based think tank, the government of UK would soon create a new identity management platform using permissioned blockchain.
As a part of ‘Innovate UK’ initiative in Aug 2016, the government also launched Blockchain-as-a-service platform for secure disbursement of welfare checks and student loans. Britain’s minister for digital and the creative industries Margot James stressed about the adoption of blockchain at multiple public services levels in London’s Blockchain Live Conference-2018 Blockchain. She also highlighted some of the pilot blockchain projects like the “Archangel” which is a partnership effort between the National Archives and the University of Surrey to preserve digital archives using blockchain. The department for work and pensions has offered the pensioners a mobile app backed by blockchain to collect payments and all the transactions are recorded on the DLT.
In March 2018, the government of the UK established a committee of the Treasury, the FCA and the Bank of England to measure the risks and benefits of adoption of cryptocurrency and distributed ledger technology indicating its seriousness towards the adoption.
According to James, the government agency will be investing over £10 million pounds for supporting blockchain projects in public services like the energy sector, the voting systems, and charities.
What happened in 2019 in the U.K.?
As promised, the UK government funded the blockchain boot camp conducted by DLT Labs in March 2019. The boot camp was focused on London startups that gave practical exposure to the participants to build blockchain based solutions.
Estonia has been surprisingly progressive about the adoption of since 2008 and it became the first country that established an e-residency program and uses e-voting on blockchain.
With the highest internet penetration rate across the globe, Estonian Government offers most of its services online and ensures its data integration by blockchain technology.
The Estonian’s have realized the potential of blockchain and the hackers are aware that any data manipulation attempted on the blockchain will be recorded and this creates a trust the citizens and state leading to successful operations of e-services.
Currently 500 licensed cryptocurrency exchanges are working in Estonia only because of the process of obtaining a license is simple and quick. The financial regulators have authorized 400 crypto wallet services so that the residents are not duped by any fake projects.
The Estonian Financial Intelligence Unit (FIU), issues financial services-related license to crypto firms within 2 weeks to establish the headquarters in the country. Currently, more than 4200 companies have been registered on Estonia’s e-Residency which are utilizing the blockchain-backed online government infrastructure.
What happened in 2019 in Estonia?
Estonia is working on the development of a national cryptocurrency that can coexist with Euro.
As Europe’s most crypto-friendly nation, Switzerland is home of a non-profit organization Ethereum Foundation that developed Ethereum, the silver of crypto world.
Switzerland is widely popular for its robust financial services and privacy that it offers to the banking clients. The nation is now home to buzzing Crypto Valley located in Zug where experts, investors and blockchain enthusiasts meet quite often as it is tax-free a haven for the crypto investors. With the support of the Swiss government, Crypto Valley Association has been created to support the building of a cryptographic technologies ecosystem.
Ethereum based digital identities were launched in Zug in November 2017. Taking it further, in 2018, the city of Zug conducted a blockchain-based test vote for voting on minor municipal matters. As the test results were positive, the government is expected to use it in future voting systems. Apart from Zug, Zurich and Geneva are also crypto-friendly territories.
The guidelines provided by the Swiss Financial Market Supervisory Authority (FINMA) support the ICO landscape and the government is expected to use blockchain beyond finance in sectors like insurance, Energy, logistics, and healthcare.
What happened in 2019 in Switzerland?
The Federal Department of Finance (FDF) proposed legal amendments in March 2019. The amendments focus on regulating crypto and blockchain firms that are regulatory knife by Swiss debt enforcement and bankruptcy law. A new category of “DLT trading systems” will help the crypto and blockchain firms flourish.
United Arab Emirates
The government of Dubai has been embracing blockchain for almost every facet of its public service. The crowned prince of Dubai H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum shared his vision of turning Dubai into a blockchain driven government by 2021. The government officials have been aiming to spend $3 billion USD annually to support the adoption of blockchain.
Partnering of Smart Dubai Office with IBM as its blockchain lead strategic partner, many government bodies are already using blockchain like the cryptocurrency Dubai Coin (DBIX).
What happened in 2019 in the U.A.E.?
Eight government bodies were shortlisted for implementation of Dubai paperless strategy. In 2019, the entities that will turn paperless are Dubai Courts, Dubai Municipality, Dubai Public Prosecution, Knowledge and Human Resources Authority, Dubai Health Authority, Community Development Authority, Dubai Airports, and Dubai Customs.
The list of countries is endless. This was just a glimpse of how aggressively is blockchain penetrating in the government infrastructures. Countries like Germany, Singapore, Australia, France, Denmark, Korea, Gibraltar, and South Africa are bringing down their guards and embracing.
While some countries are altering their legislative policies, some are upscaling their technology infrastructure. MARKNetwork is a Delaware registered blockchain solution provider. We are lowering the technology barrier by serving governments and enterprises with ready to deploy customized blockchain solutions.
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