An overview of government reactions to cryptocurrencies

Although it was hard to believe that crypto-currencies would be so popular with governments around the world a year ago, most countries are forced to recognize their undeniable potential. The surge in prices at the end of 2017 greatly contributed to their adoption and aroused the curiosity of some nations who are seriously considering the launch of their own cryptocurrency to join this frenzy. Originally designed to arm citizens against financial institutions and governments, the market has evolved greatly since then.

The Isle of Man , a small dependent island of the British Crown between England and Ireland, was perhaps the first nation to undeniably take part in this exhilarating race. In 2014,some shops on the island have started accepting Bitcoin payments. She became a pioneer in the use of virtual currencies but soon she was overshadowed by her biggest counterparts during last year's market price explosion.

A frantic race to become a Blockchain hub

Many countries around the world, inspired by Malta , and especially France and Switzerland, tend to become essential Hubs of the Blockchain. The three countries mentioned have taken the necessary measures to reduce the contours of the tax regime applied to cryptocurrencies. They have or will create more flexible and progressive regulations that promise to attract more investors.

Malta leads the race because the country was able to direct the move of Binance, the largest crypto-purse in the world, as well as that of Bibay . Binance, which initially sat in Hong Kong and valued at US $ 1 billion, will try a new start in Malta. This should generate a substantial and immediate increase in the GDP of the Mediterranean island. The economic benefits could be significantly larger in the long run.

As far as Switzerland is concerned, its approach could also promise convincing results . The city of Zug, also the epicenter of Switzerland's "Crypto Valley" is known for its pioneering crypto-currency initiatives . While some central banks believe that digital currencies pose a risk to financial stability, the financial institution proves the opposite by investing heavily and consistently in cryptocurrencies. The nation is transitioning to a decentralized and transparent currency.

In comparison, France still has some way to go. However, she is on track. The country has recently reduced the tax rates of crypto-currencies by almost 60%. The French Ministry of Finance has announced that it will provide " complete and resolute " support for cryptocurrencies. Financial subsidy and incubation system of Fintech startups , French Tech Ticket; recently named the 70 funding recipients.Many of these companies have turned to Blockchain technology. France is gradually investing in cryptocurrencies and is highlighting these still invisible fortunes.

Other notable initiatives

Venezuela has probably adopted the most interesting approach with the launch of Petro . The country's cryptocurrency is based on oil. A Petro represents a barrel of Venezuelan oil, making it a stablecoin. Petro's ambition is to circumvent American sanctions . The trading of digital currency can potentially be done with other countries and private companies.

With Venezuela suffering a disastrous hyperinflation, emerging technology could be an ingenious solution. However, the country has not yet started circulating Petro. At least, no press release on this subject has been disclosed to the general public.

Crypto-currencies and Blockchain technology contain a number of fields of application that were not possible before. It would be interesting to see the symbiotic or antagonistic role of these new technologies vis-à-vis governments around the world.

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Which country could win the race to become a blockchain hub in the years to come according to you? Why ? Let us know in the comments section below.