Although the year 2022 wasn't the best one in terms of prices, governments around the world are embracing crypto as a tool for quick transactions, combating corruption, and increasing transparency. In 2022, this crypto adoption trend accelerated as countries like UAE become more interested in deploying blockchain technology to improve their own economies.
Regulation and CBDCs are two major trends that dominated the governmental adoption scene in 2022 (not the metaverse and Defi). As the global pandemic, declining cash usage, and the desire to keep up with other central banks sped up CBDC research in nations that hadn't taken a position on CBDCs a year earlier. That said, here are the 6 governments that embraced crypto in 2022!
Widely known for the rapid modernization of its legal system, UAE is currently working on adopting new legal frameworks and regulations that will set ground rules to become the biggest hub For crypto and blockchain technology in the world. 2022 was the year that the UAE government embraced cryptocurrencies. UAE is on the right track to becoming a crypto powerhouse with new CBDC success and heavy investing in metaverse migration. It was also a huge victory for the crypto community, who had been working for years to gain acceptance for their technology within the UAE.
Currently, the UAE's share of the global cryptocurrency market is over $25 billion in transactions, and it has climbed 500% between July 2021 and June 2022, a new report from Chainalysis reveals.
Recently, The Central Bank of the UAE announced the successful completion of the first CBDC pilot involving four jurisdictions and real-value transactions. More than 160 cross-border transfers and foreign exchange transactions worth more than $22 million (80 million AED) totaled over $12 million (44 million AED) in value.
Here are some of the initiatives that the UAE government announced in 2022:
With the goal of converting at least half of all government transactions to decentralized technology, the first official step in adopting crypto & blockchain came in 2018. The Emirates Blockchain Strategy includes ambitious goals for the advancement of blockchain technology and its application in the UAE, including:
The UAE has begun issuing a national crypto license for virtual asset providers (VASPs) and mining in the country as part of a push to regulate and embrace cryptocurrency. With the establishment of Dubai's Virtual Asset Regulatory Authority (VARA), the Gulf state is set to woo a clutch of crypto firms with tailored regulations.
While UAE has given the green-light to just a handful of 30 crypto heavyweights which applied for licenses hoping to expand to the MENA scene.
Under the leadership of H.E. Mohamed Ali Al Shorafa, Chairman of the Abu Dhabi Department of Economic Development (ADDED) and Chairman of Securities and Commodities Authority (SCA), the Abu Dhabi Blockchain and Virtual Assets Committee (ADBVAC) held its inaugural meeting to discuss a strategy for blockchain and virtual assets that is in line with the UAE's economic strategy.
The strategy aims to increase Abu Dhabi's competitiveness in the blockchain and virtual asset arena and to coordinate the activities of businesses working in the sector, according to the Abu Dhabi Media Office.
Latin America continues to lead the crypto adoption as Paraguay is eyeing accepting bitcoin as a legal tender. Legislators in Paraguay have been debating a comprehensive regulatory framework for cryptocurrencies that takes businesses and traders into account for a year.
Back in July 2022, Paraguay started to develop its very own cryptocurrency strategy in which BTC can become an official currency that is taxed and regulated. Also, the country's low and stable energy prices made it a very tempting option for bitcoin mining. Currently, the Paraguayan parliament is still discussing the bill which also aims to put the country's energy surplus to good use to mine BTC.
Istanbul's cryptocurrency fever is so strong that there are small shops near Grand Bazaar where you can walk in and exchange cash for Bitcoin (BTC) or the stablecoin Tether (USDT). In addition, there are numerous advertisements for cryptocurrencies throughout the city, from billboards on the street to airports.
According to an estimate in a 2022 research report by the Turkish crypto exchange Paribu, one of the biggest crypto exchanges in Turkey, there are at least 8 million people in Turkey who are involved in cryptocurrencies. Recep Tayyip Erdogan, the president of Turkey, spoke extensively about the advantages of blockchain technology just last week while stating that Turkey wanted to be a producer, not a consumer, in the world of digital assets.
To meet this end, the Central Bank of Turkey has been creating its own Central Bank Digital Currency (CBDC), a digital version of the nation's legal tender, last week.
After the Russian attack, Ukraine has legally recognized and regulated bitcoin and other cryptocurrencies! Taking inspiration from El Salvador, the Ukrainian government has passed a law that aims to legally recognize, regulate and restrict crypto which will now be seen as non-monetary assets in the country for the first time ever.
The Ukraine central bank is seeking donations via crowdfunding to help support the embattled country. The official Twitter account of the Ukrainian government has reached out to the Twitter crypto community asking for donations in Bitcoin (BTC), Ethereum (ETH) and Tether (USDT) to help those suffering from the ongoing war.
6. El Salvador
El Salvador, whose main crypto breakthrough occurred in 2021, deserves to be included in this list, if only for its perseverance. Since revealing the plan to issue "Bitcoin bonds," Nayib Bukele's government has been attempting to carry it out. The first delay occurred in March, and it was repeated in September. Economy Minister Maria Luisa Hayem Brevé introduced legislation in November confirming the government's plan to raise $1 billion and invest it in the construction of a "Bitcoin city." However, no news about the bill's success has been reported since.