By David Drake
Blockchain has been adopted in various ways around the globe. For example, Latin America has positioned itself as a territory with extensive interest in blockchain technology. In this region, various sectors see blockchain as having the potential to propel economic growth, transparency and financial development.
Already, Brazil is using blockchain to reduce corruption and facilitate voting while Chile is using the technology to facilitate electronic transfer of funds. But it is Argentina that is taking the lead in blockchain adoption and utilization of cryptocurrencies in businesses as a way of cushioning inflation. The country is already playing host to many blockchain projects and the cryptocurrency industry here enjoys tremendous support from government.
As a result, Binance Labs has declared its support of Argentina’s blockchain startups. Better still, the Argentine government has agreed to further invest up to $50,000 in each startup that is a beneficiary of impact investing funding provided by Binance Labs and crypto exchange LatamEX. In addition, the government of Argentina intends to finance 10 blockchain-based projects each year for the next four years.
This is a big step for blockchain projects in the country and the world at large because it means startups can now be funded in their initial, formative stages by investment partners. According to Jess Davis, CEO of Uberstate, blockchain adoption will require some form of funding and demystification.
He says, “Blockchain will be canonized in history as the most collaborative form of finance. It will allow for greater opportunities economically as adoption comes on. Countries that reject this formative model of finance will fall behind no matter the population size. The demystified approach to governance, compliance, and education will bring alternative methods of finance possible globally.”
Governments and investors have a key role to play in promoting global utilization of blockchain. Other than providing funds, governments need to provide clear and non-restrictive regulations that protect investors and consumers. At the same time, they need to provide a stable and conducive environment for blockchain technology to thrive.
On the other hand, investors should provide start-ups with advice, mentorship and the right technology to enable them develop solutions to real problems. The potential of blockchain technology is huge, there are many possibilities of creating jobs for developers. Beyond this, the funding provided to entrepreneurs to establish their startup companies will ensure that jobs and projects in this sector are sustained.
The benefits of blockchain are not only economic, they will also be realized in the social space. In countries where inflation and corruption are rife, blockchain and cryptocurrencies can provide an alternative mode of payment in peer-to-peer transactions and also serve as a measure of ensuring transparency.
Disclaimer: David Drake is on the advisory board for most of the firms mentioned or quoted in this article.