Gone are the times when crypto was just another buzzword or urban legend. It's now a worldview, a future direction, and the most surefire strategy to combat centralized financial control.
However, the adoption of cryptocurrency still differs from country to country. Some countries have tried to limit how far crypto adoption may go, while others saw the promise of crypto far sooner and plunged in headfirst.
Those who took the plunge have gone to great lengths to create favorable regulations for enterprises that use Blockchain and incorporate crypto into their national systems.
In this article, we’ll take a look at the top three countries currently leading the way in global crypto adoption.
Certain governments have developed rules encouraging fintech start-ups to utilize blockchain and crypto within their infrastructure.
Others have taken the path of introducing publicly accessible crypto payment options in response to an increased demand for easier access to crypto.
In August 2021, Germany passed a law allowing institutional funds to hold up to 20% of their assets in crypto. It allows fixed-income investment funds (Spezialfonds) to invest up to 20% of their assets in Bitcoin and other cryptocurrencies. However, these funds are only accessible to institutional investors as pension funds and insurers.
German bank Deutsche WertpapierService Bank (Dwpbank) plans to offer Bitcoin to all (affiliate) retail customers in 2023. Dwpbank offers securities processing to 1,200 banks in Germany. The service will allow customers to open crypto accounts alongside their bank accounts and will not require additional KYC procedures.
Thanks to its efforts to support blockchain-based businesses, Germany has also emerged as one of the world's most crypto-friendly countries. The German branch of Coinbase was granted a crypto custody business license by the Federal Financial Supervisory Authority in 2021. And over 20 crypto exchange-traded products are listed on Deutsche Boerse's digital exchange, Xetra.
Malta's rise as a global crypto hub can be traced back to 2018, when the Maltese government passed legislation establishing a legal framework for blockchain and cryptocurrencies.
These laws created a regulatory framework for ICOs, crypto exchanges, and crypto-related businesses, establishing Malta as one of the world’s first crypto-friendly countries.
Furthermore, each year, Malta hosts the Malta AI & Blockchain Summit. It is considered the world’s most important event for blockchain and new technology, with over 80 countries represented.
El Salvador was the first country to introduce Bitcoin as its official currency. The government has established bitcoin ATMs, an e-wallet, and stores nationwide to facilitate Bitcoin payments.
The government gave all citizens US$30 in free BTC when they signed up for the national digital wallet, "Chivo." Also, any foreign investor who donates 3 BTC to the country is eligible for residency.
El Salvador's President Nayib Bukele declared in November 2021 that the country plans to construct the world's first "Bitcoin City," funded by bitcoin-backed bonds. According to President Bukele, the city will include an airport, residential and business zones, and a central plaza that resembles a Bitcoin symbol from the air.
Plenty more countries are beginning to tap into the potential cryptocurrencies in addition to those mentioned above. This is only the beginning. As more countries worldwide take the plunge, broader crypto adoption is set to follow.
You can join the cryptocurrency bandwagon and benefit from the rewards of investing, trading, and creating on the blockchain by signing up to Bake today.
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