8 countries exploring use-cases for a state-backed cryptocurrency
By: Actual Group
Tags: Crypto, Cryptocurrency, Blockchain, Investing, Bitcoin

The Eastern-Caribbean Islands

With a tourism-reliant economy facing pressure from the impact of climate change and natural disasters — along with a recent tightening of US banking regulations — the people of the Caribbean are looking for innovative ways to reduce the need to outsource their banking system. The Eastern Caribbean Currency Union is piloting a blockchain project to create a sovereign digital currency for the islands. Such an asset would be a move towards a cashless society while reducing reliance on the US and increasing access to the global market trade.

See also: The Bahamas

The Marshall Islands

Efforts by international banks to “de-risk” (to avoid sanctions over fraud and money laundering by pulling out of places like the Marshall Islands) has left the people of the islands virtually bankless and in need of a drastic solution. The Minister of Finance and President Hilda Heine have both embraced the potential of a cryptocurrency as sole legal tender — so that reliance on the US banking system would no longer be necessary. The coinage would be regulated to comply with international standards and will move away from the current paper cash system.

See also: Papua New Guinea

Iran

Iran’s current high-price and low-income living situation is triggering regular bouts of civil unrest, as the people look for answers from the government. At the same time, Iran is looking at ways to side-step economic sanctions that are currently being reinstated by the US. The Iranian government believes a state-sponsored cryptocurrency could be the answer. While an indigenous digital currency may not resolve political issues, Iran sees a proprietary asset as a solution to potential financial instability caused by a breakdown of the Iranian nuclear deal.

See also: Dubai

Turkey

Turkey has made it clear that they are seriously considering a state-backed cryptocurrency to circumvent the volatility of their native currency. As the relationship between Turkey and the US deteriorates, the country is also looking for financial autonomy from the US. Officials have stated that considerable work would need to be done to regulate a state cryptocurrency — but with so many officials publicly and emphatically endorsing the idea of a state digital asset, a pilot scheme to test a blockchain-based digital asset is likely to be implemented very soon.

See also: Estonia

Tunisia

International debt, inflation, and a decline in foreign exchange reserves are all forces that are continuously crippling many countries in Africa — and Tunisia for one is looking for a financial solution that will take the country out of this current economic situation. A transaction platform that is being developed would serve as a digital ID for the people, and would also be used for salary transfers, loans, and bill payments. The plan is to ensure that the 10 million strong population of Tunisia could all have access to economic freedom through their smartphones.

See also: Senegal

Thailand

As borrowing costs from the US continue to rise for Asian countries and trade tension between the US and China increases — Thailand is exploring solutions to avoid potential sanctions and repercussions. Wanting to propel itself into a better economic situation by adopting a government-regulated cryptocurrency through the central bank’s “Project Inathon” — Thailand hopes to continue its road to full recovery and to position itself as a leader in financial innovation. The first phase of the project is expected to be completed by early 2019.

See also: Japan

Sweden

A firm advocate and pioneer for cashless banking systems — Sweden is racing ahead in the development of a state-backed cryptocurrency — namely the e-krona. The Swedish government is keen to be a frontrunner in the global exploration of best use-cases for blockchain tech and cryptocurrency — so they have cast the net wide. One of the potential use-cases for this asset is a method by which asylum seekers — with very little alternatives for financial independence — could have a verifiable and secure means of value-transfer.

See also: Switzerland

China

Despite continued high-profile bans on crypto activity in China and the government not making any official announcements for a state-backed cryptocurrency — many, including several high-profile Chinese banking officials, have hypothesized that a proprietary digital asset is high on the agenda for the Chinese government in the near future. The current rate of blockchain technology development across the country only reinforces those claims. An official announcement on their stance on a government-backed asset seems very likely.

See also: Russia