Cryptocurrencies are not a replacement for money or banks, but fuel for a new type of economy emerging before our eyes, and the authorities should understand that there is a future for this sphere. If a country does not compete for the capital generated by crypto-economics, it will inevitably lag behind others. We tell who is now leading the race for the title of the first crypto-country, and who remained far behind.
Do not be mistaken: cryptocurrencies will not go anywhere, and not one state will be made on them - some estimate the future total income of investors in the trillions of dollars.
The question is whether countries will be able to quickly adapt to this new economic reality and become real crypto-states - jurisdictions where cryptocurrencies are allowed, clearly and fairly regulated, taxed, engaged at several levels of the economy and at the same time serve as a productive force and global political tool. Of course, this will not happen overnight, but some countries will be more successful on this path than others.
Some states are flirting with the idea of a national digital currency, but so far these are projects that are far from implementation - and it is especially difficult to imagine the introduction of centralized currencies in this capacity.
Nevertheless, there are many areas where government investments could be of great benefit to citizens. For example, in Estonia, where, as you know, there is an e-citizenship program, electronic identity card allows you to vote and take loans via the Internet, there is a single system of certification and credit rating - all this can be done with the help of a fully decentralized blockchain.
Also, the introduction of a decentralized identification system (examples of such projects are Civic, uPort and Thekey) can help empower the state and citizens; in addition, donations can be collected in cryptocurrencies.
Why is this so important? The fact is that if your country does not compete for the capital created by cryptoeconomics, it will inevitably lag behind others - and some small countries have seen opportunities here for themselves.
Singapore, Hong Kong, Estonia and Switzerland become centers of cryptoeconomics; Only Switzerland in the first half of 2017 of the year attracted within the framework of ICO 500 million dollars - the second place after the USA
What you need to do to keep up with the times?
- It is necessary to encourage citizens to own cryptocurrency, and not to warn against it. It is important to set an example, since possession of cryptocurrencies is the first step towards their understanding, and now the press is creating a kind of mystical and negative image around them. Governments should encourage their ministries and officials to own cryptocurrencies, and even provide them with some kind of assets to master this environment.
- The state should increase its technological expertise, increase budgets and hire new people, as well as invest in raising new specialists so that they are not in short supply. The education system should focus on computer science - from an early age, because children who study games and mobile applications understand the value of digital assets best. We also need investments in related infrastructure, for example, in the power industry - crypto-economics consumes a lot of electricity.
- It is necessary to involve commercial banks and the central bank in this process - it is important for them to realize that not all cryptocurrency companies practice frauds, and that there is nothing wrong with this business - subject to a number of rules. In the near future, banks will not go anywhere - moreover, they may become key players in this field, as users trust them, but do not trust cryptocurrency systems because of the lack of understanding of their operating principles. Cryptocurrencies are not a replacement for money or banks, but fuel for a new type of economy emerging before our very eyes.
Apparently, today, compared to other developed countries, Japan is breaking ahead: it declared Bitcoin a legal tender and supports registered exchanges. Thus, cryptobusiness becomes promising for entrepreneurs, investment in cryptocurrency is attractive for institutional and private investors, and cryptocurrency is a popular digital asset that can be spent in tens of thousands of stores across the country.
Such a policy can be cited as an example, but not everyone can easily follow it - there is a culture of consensus in Japan, which corresponds to the basic principle of the blockchain, and besides, there is a lot of experience in using digital money and various points and coupons in the country, so that cryptocurrency has hit the mark.
At the opposite end of the scale is Israel, a very technological country with blooming startups. Nevertheless, there, banks make legal cryptocurrency investments almost impossible, and the lives of the respective entrepreneurs and services are difficult, and this is mainly due to misinformation and the lack of a clear regulatory framework.
In fairness, not everything depends on the government - other interested parties are also of great importance. Responsible public education is a media task. The investment community, including venture capital investors, should encourage, rather than repel, entrepreneurs who come to them with crypto-projects.
Companies operating in this industry also have a big responsibility: they must set high standards, avoid unscrupulous contractors and generally explain this area of power and market participants.