Today, more and more cities are beginning to implement blockchain technology and to consider cryptocurrencies as a way to collect funds. So it is not surprising that the most notable events in the crypto industry last week were the completion of the first municipal voting on blockchain in the Swiss city of Zug and the adoption of three laws regulating cryptocurrencies in Malta. The experts at the ICOBox Blockchain Research Center (IBRC) have analyzed this trend and selected the four projects on the creation of crypto cities and crypto states that the Center believes are the most remarkable and which could potentially have a profound effect on the entire digital currency industry.
500 “Crypto Valley” Startups
The transformation of the small Swiss city of Zug and its surroundings into one of the largest international centers of development of blockchain technology began in 2013. For several years now this place has unofficially been called Crypto Valley, with the Crypto Valley Association being created here in 2017. This is a non-profit organization that unites entrepreneurs (including major market players such as Thomson Reuters, PwC, Luxoft, Bitcoin Suisse, Bussmann Advisory, etc.), backers, educational institutions, and the executive authorities to promote cutting-edge research and innovations. Today Crypto Valley has more than 500 startups, service providers, and other companies involved in ICOs and blockchain, and there are several banks in Zug where cryptocurrency can be freely exchanged for fiat currency and bitcoin can be used to pay parking tickets.
Why Zug, of all places? Crypto analyst and ICOBox co-founder Daria Generalova believes that it all comes down to the country’s unusual approach to money and innovations. “For many years Switzerland has been one of the most important financial capitals of the world. Today, in conditions of global economic competition, blockchain can help to maintain the same level of financial inflows to the country,” she says. “There is very strong competition between the cantons in the country, which are fighting amongst themselves for entrepreneurs. The local authorities are open to innovations and are prepared to assist in the creation of new economic clusters in any way they can. For example, when launching a project in Switzerland, you can consult with the financial regulator and the tax authorities beforehand and receive their opinion on whether the project meets all requirements and legislative norms. Naturally, this approach is a big draw for investors and entrepreneurs.”
“Blockchain Island”
There is another small European nation that is doing its best to keep up with Switzerland: Malta. Last week the local parliament adopted three laws establishing a legal and regulatory framework for blockchain technology. Consequently, startups that choose this country as their base of operations will have the legal tools needed to work in a transparent regulatory environment. The local authorities make no secret of the fact that they would like to transform the country into “Blockchain Island,” and so far it is working: for example, major market players such as the OKex, Binance, and BitBay exchanges have already opened offices there, and the American Tron Foundation has also announced its desire to move to the island.
A Crypto State with No Income Tax
While various countries are trying to make themselves crypto friendly, in mid-May eminent serial entrepreneur, blockchain guru, and founder of the Cryptonomics Capital fund Nick Evdokimov announced the creation of Decenturion, his own blockchain state with an economy based on the instruments of direct democracy. In just over a month the new project has already gained more than 120,000 residents.
“Decenturion does not have physical boundaries, and its citizens are only united in cyberspace. In essence, it is a gigantic blockchain platform and marketplace for holding the ICOs of various startups. When projects join Decenturion, their tokens are distributed for free among the citizens of the virtual country pro rata to the level of their involvement. Decenturion does not collect any taxes from its citizens. The project is nice for startups, because they immediately gain access to a huge audience. It creates a mutually beneficial partnership: the more startups there are, and the faster the number of citizens grows, the more possibilities everyone will have to benefit,” Evdokimov explains.
According to the founders of Decenturion, thanks to the fact that the first passports were handed out to blockchain “apostles,” startups have every chance of achieving business indicators that are many times higher than the results of a traditional ICO. In addition, Decenturion plans to carefully select its residents: they will only include those projects whose tokens are backed by real products, and not those that are just traded on an exchange.
When Rap Is Neither an End Nor a Means
Well-known rapper and R&B artist Akon does not have his own blockchain state yet, but he is channeling all of his efforts toward creating a digital currency for distribution in his own crypto city - Akon Crypto City. It will be located in Senegal, where the singer spent a significant part of his childhood. In the crypto city all the infrastructure necessary for a comfortable life will be created, with housing, stores, parks, kindergartens and schools, and everything will be 100% based on cryptocurrencies.
“I think that blockchain and crypto could be the savior for Africa in many ways because it brings the power back to the people and brings the security back into the currency system and also allows the people to utilize it in ways where they can advance themselves and not allow government to do those things that are keeping them down,” the singer announced at Cannes Lions International Festival of Creativity in mid-June.
As noted by IBRC international communications expert Dima Zaitsev, Ph.D., such a statement could be considered hype or somewhat unbecoming self-promotion if Akon had not previously been involved in humanitarian projects in Africa. Among other things, he took part in the development of the successful Lighting Africa project, which proposes the gradual transition of the continent to solar energy.
On the Path to Recognition
It’s no surprise that cryptocurrencies are taking hold of entire cities and countries, continues IBRC expert Dima Zaitsev.
“What’s happening today in Switzerland and Malta, for example, is just the first steps toward worldwide recognition of the crypto industry. The next step will be its legal regulation, because neither backers nor governments are happy with the market being in the so-called “gray” zone.
I believe that this regulation will happen in the near future and will be as fair as possible to the cryptocurrency market, because wise people understand its potential perfectly well, meaning that there is no need to make it into a nightmare.
For the time being, the more stories there are about how another country or another famous person has warmed up to digital currencies or blockchain, the better things will be for all market participants. Advertising is the engine of commerce, and these news items will push the entire industry forward, to the chagrin of the detractors, and will give all the fence sitters more food for thought,” Zaitsev concludes.
Nothing in this article is to be construed as investment advice. Neither the author nor the publication takes any responsibility or liability for any investments, profits or losses you may incur as a result of this information.
This article appeared first on Cryptovest
