- Did you know that more than 33% of the entire population of Nigeria has used, owned, or traded in cryptocurrencies?
- Are you aware that smaller Asian nations like Vietnam and the Philippines are leading Crypto Adoption rates in the world?
- Have you tried to understand why some countries favor cryptocurrency use while others are not favorably disposed?
Every country in the world has to start engaging with cryptocurrencies at some level or the other. With mass adoption, the advent of institutional investors, and progressive conversations with policymakers, cryptocurrencies have become a staple topic of financial conversation.
From a very rigid and opposing stance that was offered by countries to crypto some years back, there has been a marked departure in this area. Governments of the world are coming forward to engage in meaningful conversations with the crypto lobby.
Why are Some Countries of the World Promoting Cryptocurrencies?
In the last few years, there have been several countries that have progressively started engagements with cryptocurrencies. The following are some of the reasons-
- The underlying technology behind cryptocurrencies, Blockchain has emerged as a critical technical driver. Countries have realized that they will be able to use Blockchain and find applications in different areas of the economy.
- Sizable sections of a country’s population have already invested in cryptocurrencies. Banning crypto would result in their assets and investments suffering on a massive scale and this is something that might result in social unrest.
- Countries have also started imposing various types of taxes (Capital Gains Taxes) on crypto profits. This is also an area that governments realize could emerge as a key revenue-generating opportunity.
- Most policymakers realize that this is the future of world finance. Being in an advantageous position from the start can help them emerge as leaders when cryptocurrencies and technologies become mainstream.
The above are some reasons that have prompted countries to offer formal banking services, set up crypto ATMs, and do a lot more towards creating a favorable environment for crypto investors.
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List of Countries that are Promoting Cryptocurrencies
In this section, we are going to look at some countries that have taken the lead as far as promoting cryptocurrencies is concerned.
The country of Germany has been regarded as one of the foremost manufacturing hubs in the world. However, the country has also been at the forefront of tech and software innovations. SAP’s home country and headquarters are in Germany. The country has requested its banks to start giving banking facilities to its crypto traders and investors. In Europe, it is leading.
The mountainous country of Switzerland has one of the world’s highest per capita incomes. It has also been a safe haven for crypto exchanges and businesses. It has offered tax concessions and asked its government representatives to create the best and most fertile ecosystem for cryptocurrencies and their stakeholders to thrive in. This has made Switzerland a great country.
While Japan has not formally legalized cryptocurrencies like the US, it has nevertheless allowed the ecosystem to flourish by taking a step back. This has boosted the advent of fintech innovations in Japan. The Asian economic powerhouse now calls some of the world’s leading exchanges it’s home. Japanese citizens have taken to crypto investing aggressively.
The African nation of Nigeria has been experiencing somewhat of an economic revolution. New industrialists and businesses have ushered in tech and digital adoption massively. Mobile wallets, smartphone integrations, and crypto payment solutions are changing the face of the country. For figures, Nigeria has more than 33% of its population engaging with crypto.
5. The United States of America-
While many criticize the US as being too late to the crypto party, the country has slowly but steadily boosting crypto adoption. Calls for more positive and constructive engagements with the crypto lobby are taking place. Wall Street has also played a major role in institutionalizing cryptocurrencies in the country.
The Bottom Line
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