Why Post-Soviet Nations Embraced Blockchain

After the dissolution of the Soviet Union in 1991, a lot of countries gained independence. Still, 30 years is a very short time to make considerable reforms but we have an example of the Baltic states that are now members of NATO and embraced the pro-Western path.

But it should be said that the rest of the countries at some point failed to leave Russia’s orbit and pressure from the largest country in the world is still huge. But it should be said that step by step post-Soviet nations are making a huge leap in the blockchain industry. Various reforms are made regarding this topic and in this article, we will review some of them.

Possible reasons behind adopting blockchain

After the dissolution of the Soviet Union post-Soviet countries were pretty behind on all the industry and modern production facilities and would have to do way too much to catch up. Blockchain was like a shortcut for them to achieve what Western countries had achieved, and it seems to be working.

Also, the idea of anonymous currency where transactions would not be traced by governments was also appealing for countries. They looked at Bitcoin as a safe haven and we should note that this approach worked.

According to experts on Kapitali.ge, in particular, Vazha Sabiashvili, blockchain is helping Georgia to stand out as a tech-friendly nation. And the country is one of the best in terms of adopting cryptocurrencies in the post-Soviet world.

Ukraine

The latest news from Ukraine inspires the local community more than ever before. In early December 2019, MPs passed a law on the introduction of FATF rules to counter money laundering and terrorist financing, which contains a provision on virtual assets.

It is rightly a historic event. Ukraine became the first state in the post-Soviet space that legalized the terminology of cryptocurrencies throughout the country.

Against the background of the adoption of the law, at the end of January 2020, Ukraine was creating the first national blockchain system, which in the future can be used for various voting, the creation of a national cryptocurrency, the use of smart contracts, and the provision of fault-tolerant electronic paperwork.

Canadian blockchain expert Don Tapscott also calls the capital of the crypto in the post-Soviet the birthplace of black earth. He presented a world map, which marked 14 countries leading the implementation of blockchain, including Ukraine.

Belarus

Belarus can be considered an officially friendly country from March 28, 2018. Then the decree “On the development of the digital economy” signed by President of Belarus Alexander Lukashenko came into force, which served as the birth of one of the largest crypto-community in the CIS countries.

The document officially allows to buy, sell and exchange cryptocurrencies, conduct activities as an exchange point operator and work in other areas in the field of blockchain technology. According to the decree, transactions with crypto will not be considered entrepreneurial activity, and participants of transactions will be given tax benefits until January 1, 2023.

The business card of Belarus is the High Technology Park (HTP), which is the head office of the country’s first Currency crypto exchange.

Kazakhstan

The Kazakh people have a hard time with crypto. In March 2018, the National Bank of Kazakhstan prepared amendments to the legislation aimed at tightening regulation of cryptocurrencies. The main message is to prohibit the purchase and sale of crypts for tenge, the activities of exchanges in this segment, as well as any types of mining.

A month later, the head of the National Bank of Kazakhstan said that the introduction of a ban on advertising cryptocurrencies in the media would be the “right” decision.

Today, the picture is diluted with white paint thanks to initiatives of the Ministry of Digital Development, Innovation, and Aerospace Industry (ICROAP). Last year, it introduced a bill amending existing laws to include the concept of a digital asset. The “digital asset” will have a partial monetary function.

Russia

In Russia, cryptocurrency is loved. Proof of this is the first place in the volume of trading on the local platforms. 

In general, almost 70% of Russians know about the cryptocurrency, and 54% of them are ready to keep savings in Bitcoins. This was shown by the research of the Institute of Public Opinion which was conducted on January 16, 2020.

Russia as a blockchain power is recognized abroad. In March 2019, Flying University published a ranking of the countries that have the most favorable conditions for the development and development of business projects related to blockchain and cryptocurrencies. Russia is ranked 18th.

As long as the regulation of cryptocurrencies in Russia remains slurred, there are prerequisites for it. For the first time, the Ninth Arbitration Court of Appeal in Moscow spoke about the legalization of the crypt, which eventually recognized the cryptocurrency as property. The court defined the crypt as the debtor’s property and demanded to hand it over to repay the debt. This is the first such decision of the judicial body in Russia.

Conclusion

The economic potential of many post-soviet nations is really outstanding. They hold great prospects but it should be said that they’re still recovering from their influence after nearly 30 years of having independence.

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