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China is Just one participant in the State-backed Cryptocurrency Race as New Contenders Join

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Technology has always played a key role in the economic growth of a nation. The modern-day economy is slowly going completely digital, and cryptocurrencies and blockchain technology are acting as the bridge between the two sectors. While the cryptocurrencies we come across in general may not be on the good side of authorities, the governments are quite keen on exploiting blockchain technology for good.

This trend is on the rise, especially because blockchain will decentralize control over currency, while the maker can still decide upon the rules and how to govern them. This comes with the added benefit of security and speed with less than half the fees. Following China and Venezuela, many other nations are also working on deploying their own state-backed cryptocurrencies.

Recently the government of the British Virgin Islands have announced that it is going to launch a stablecoin for use within the British Overseas Territory in partnership with blockchain startup LIFELabs. The stablecoin dubbed BVI~LIFE is designed with the intention of providing “Rapid Cash” in case of an “emergency,” while also providing an alternate method of payment within the nation.

BVI Premier Andrew Fahie said:

“The importance of blockchain technology and the significant benefits it offers the BVI, are paramount to the Territory. We welcome this innovation with open arms. Our partner, LIFElabs, has demonstrated with their proven track record that their ideology is not just mere words, and we look forward to continuing our partnership with them on the rollout of BVI~LIFE, our digital currency.”

Last month Sweden Central Bank Governor Stefan Ingves, hinted towards a possible Swedish state-backed cryptocurrency as he cited some of the key pointers that the Central Bank needs to work out before launching a national cryptocurrency.

The European Union is also looking to launch a digital cryptocurrency of its own that would allow them to rival Libra. As reported earlier by The Daily Chain, Europe wants to block Libra development while offering other alternatives for users to reap the benefits of cryptocurrencies. With the sole reason, a draft text that was discussed last month urged the European Central Bank to continue assessing the benefits of launching its own digital currency.

Turkey is also another underrated participant in this blockchain race. Their digital currency project dubbed ‘Lira’ was included in Recep Erdogan’s Annual Presidential Program, the state-run Anadolu Agency reported. The program explicitly mentions that a “blockchain-based digital currency” will be introduced with tests commencing as early as 2020.

While most of these nations are developing their national cryptocurrencies to promote economic growth and tackle inflation, North Korea has other intentions. Reports have revealed that North Korea is already in the early stages of developing their national cryptocurrency to bypass U.S sanctions and circumvent the U.S.-dominated global financial system.

Alejandro Cao de Benos, the official in charge of North Korea’s cryptocurrency conferences said:

“We are still in the very early stages in the creation of the token. Now we are in the phase of studying the goods that will give value to it, no plans to digitize the [North Korean] won for now.”

While global crypto and the blockchain-based economy is still a long way from reality, the entire industry has grown immensely in a trifling amount of time compared to the fiat economy. More nations become interested in the implications of blockchain technology even if they aren’t in favour of the private cryptocurrencies that have started the global financial revolution in the first place. One thing that is certain is the fact that these early adopters will lead the revolution that determines the future of money.

Anna Larsen
Anna Larsen has been a Crypto enthusiast since 2016. Fascinated by the technology and its usecases she decided to pursue a career in content creation related to this space. The journey has been exciting ever since.

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