Cryptocurrency has been famed for its decentralized nature, earning it admirers and detractors alike. A lot of banking institutions have been quite hostile towards it except for a few who have recently begun to warm up to the blockchain. Crypto enthusiasts, on the other hand, have reveled on the decentralized nature of crypto. A few governments have also been attracted to this since it represents a semblance of freedom for them financially. These countries have recently begun pursuing state-backed crypto’s. Some of these countries include;
Venezuela has had ambitions of being the first to have a state-backed cryptocurrency. This has led to them unveiling their very own petrodollar. President Maduro seeks to arrest the hyperinflation, difficult living conditions, and high mass migrations in his country by using cryptocurrency. The jury is still out on whether president Maduro can turn it all around.
- Eastern Caribbean Islands
The beautiful islands that rely heavily on tourism are facing a sharp downturn due to unfavorable climate and natural disasters. All this accompanied by the tightening of US banking regulations has led to the people on the islands seeking to reduce the need to outsource their banking systems. The creation of a sovereign digital currency for the islands is on the cards through the piloting of a blockchain project by the Eastern Caribbean currency union.
- The Marshall Islands
The move by international banks to leave places like the marshal islands in order to avoid sanctions that might be brought about by fraud and money laundering. This has left the people in that part of the world virtually bankless. The country’s president and the minister of finance have both warmed up to the idea of a cryptocurrency as legal sole tender in order to avoid reliance on the US banking system.
The Iranian government believes that a state-sponsored cryptocurrency could help sidestep the new sanctions set to be reinstated by the United States. The government is of the belief that such a proprietary state asset could help cushion the government from negative effects yet to set in due to the breakdown of the Iranian nuclear deal.
As the relationship between Turkey and the United States deteriorates, turkey is increasingly looking for financial autonomy from the United States. A state-backed cryptocurrency has been touted as the solution as the government seeks to circumvent the volatility of their native currency.
Financial adversities in the form of crippling inflation, international debt, and decline in foreign reserves have led to economic downturns in most countries in Africa. A transaction platform has been developed in the country as a digital ID. This will be used for loans, bill payments, and transfers in order to ensure that 10 million people in Tunisia can access economic freedom through their smartphones.
As borrowing costs from the US to Asian countries continues to skyrocket, as well as trade tensions between the US and China, Thailand is seeking to cushion itself from potential shocks and sanctions. The country is, therefore, pursuing a self-regulated crypto through their central banks project Inathon.
Many officials have indicated that the creation of a high profile proprietary digital asset is high on the agenda of the Chinese government. This is despite past high profile bans on crypto activity in the country.
Sweden is making big moves in the development of state-backed cryptocurrency dubbed the e-krona. In their relentless pursuit of a cashless banking system, the country is becoming a leader in the exploration of best use cases of exploration of the blockchain and cryptocurrencies.