5 countries leading the blockchain adoption race (2024)

Cryptocurrencies are currently at the receiving end of tremendous regulatory scrutiny. Law enforcement agencies and regulatory bodies around the world are hard at work, trying to develop strict guidelines for the safe and reliable deployment of these digital assets.

On the other hand, blockchain systems, which serve as the underlying technology layer for cryptocurrencies, have seen widespread adoption. Thanks to its transparent, immutable and decentralised data storage capabilities, blockchain technology can and has been implemented across business verticals, greatly improving their efficiency.

However, as with any novel technology, the adoption of blockchain has not been equal among the different countries of the world. Some nations have made giant strides in the blockchain space while others are still playing catch up.

Here's a look at the top 5 countries leading the blockchain adoption race.

Malta, the blockchain island

Malta’s blockchain journey began way back in 2017. At that time, the tiny island nation had already begun drafting regulations to speed up the growth and adoption of blockchain technology. The following year, the Maltese parliament set up a regulatory framework for the blockchain industry.

This framework included 3 laws that regulated ICOs, digital assets, digital currencies and other related verticals. A couple of years later, in 2021, the Maltese government issued a statement welcoming international companies to test and operate Blockchain technology.

These initiatives have borne fruit for the island nation, with blockchain systems disrupting several of the government’s traditional processes. For instance, Malta was the first country to implement a blockchain-based IP register. This was followed by blockchain-based property planning and copyright systems. Malta even implemented a blockchain-based supply chain system for the certification of food products produced on the island of Gozo.

China moves ahead with blockchain despite the crypto ban

Despite its crypto ban in 2021, China has been making giant strides in the blockchain space. In the same year that it banned cryptocurrencies, the country’s two main tech regulators, the Ministry of Industry and Information Technology (MIIT) and the Cyberspace Administration of China (CAC) issued a statement saying that China was looking to use blockchain across a range of industries by 2030. China seems to be working hard toward achieving this mission.

In fact, by July of the next year, the country had nearly 1,900 blockchain-based companies registered with the CAC. These companies were spread across a wide array of business verticals, including agricultural, finance, legal and intellectual property protection projects.

Most recently, the Chinese Ministry of Science and Technology okayed the establishment of the National Blockchain Technology Innovation Centre (NBTIC). Based in Beijing, the NBTIC will focus its research on blockchain software, hardware and its fundamental theories. It will also explore the utility of blockchain technology for industrial applications, the national economy and personal livelihoods.

Singapore emerges as a hub for blockchain and crypto

As one of the most technologically equipped nations in Asia, Singapore is perceived as a hub for crypto innovation and blockchain developments. With open support from the Singaporean government, the country's regulations are aimed at supporting blockchain initiatives.

Global eTrade Services (GeTS) is a leading eGovernment product and services provider that launched Open Trade Blockchain (OTB), an extensible blockchain service. The OTB is the region’s first-ever cross-border blockchain platform, aimed at making global trade secure, transparent, and efficient.

Blockchain footprints can also be seen in the education industry in the nation. A public institution, Ngee Ann Polytechnic (NP) has become the first educational institution to check the authenticity of the NP’s diploma using blockchain technology. The institute also uses blockchain to keep track of academic records and education history.

The Public Service Division of Singapore has also announced that it will soon adopt blockchain technology to track records on Gebiz (the Singapore Government's one-stop e-procurement portal). The technology will also be used to track government officials’ career moves and enhance the auditing process.

Japan is quickly rising through the ranks

Japan has ties to the crypto and blockchain industry that date back to 2010. This was the year when one of the world’s first and largest crypto exchanges, Mt. Gox, was launched. A few years later, in 2017, the country also passed a law perceiving Bitcoin as a legal tender. Since then, the country has taken giant strides to become a leader in the blockchain space.

This is marked by the country’s spending in this sector. For instance, Japan’s spending on blockchain technologies has increased by 104 percent over the last few years, going from $40 million in 2017 to $700 million by the end of 2021. This figure is expected to keep growing, eventually touching $8 billion by 2026, according to a report by EarlyWorks, a Japanese blockchain developer.

The Japanese city of f*ckuoka has also partnered with the blockchain network, Astar, in a bid to become a web3 hub. The plan is to create a National Special Strategic Zone that emulates the Silicon Valley in the west. To realize this vision, Astar has partnered with some of the largest tech and finance firms in the country, including Microsoft Japan, Amazon Japan, Dentsu, Accenture Japan, SoftBank, PwC Japan, etc.

UAE is also a major base for blockchain

Back in 2016, the UAE announced the Dubai Blockchain Strategy. The goal of this project was to execute all of the state’s transactions using blockchain technology. Two years later, this initiative was followed by the Emirates Blockchain Strategy 2021. Through this initiative, the government aimed to route 50 percent of its transaction through blockchain-based technologies by 2021.

Both initiatives have paid dividends as the UAE is now home to several of the largest blockchain companies in the world. One of the 7 emirates of UAE, Dubai, has quickly emerged as a crypto and blockchain hub. Some of the world’s largest crypto companies, including Binance and Kraken, have secured licenses to operate in the gulf state. Dubai will also play host to the prestigious World Blockchain Summit this year. Another emirate, Abu Dhabi, announced the launch of Hub71. This will be a dedicated Web3 ecosystem with a $2 billion fund committed to web3 start-ups and blockchain technologies.

Conclusion

Blockchain has the power to disrupt almost every sphere of life. That’s the reason why so many of the world’s powerhouses are rushing to implement this technology across business verticals and government processes. Therefore, even though cryptocurrencies and digital assets are currently facing the heat from regulators, blockchain technology continues to see added adoption.