When speaking about cryptocurrency and its adaptation, we mostly think about Asian countries where most of it is mined. For example, Japan is at the forefront of blockchain development as nearly everything can be purchased with Bitcoin. Many countries are trying to mimic this approach to the digital economy and fintech in general. However, it is very hard to change the minds of millions of customers who are used to doing a very specific process in a very specific way.
Countries at the forefront of Blockchain
As already mentioned above, Asian countries are quickly shaping to become blockchain powerhouses. But there are segments that the blockchain is divided in. For example, China is the leading country in terms of production, such as mining and cryptocurrency reserves. Around 80% of all cryptos are being kept in Chinese mining farms.
Japan, however, is in the leading country in terms of Bitcoin adaptation in the economy. Most stores will have crypto payment options, that is their forte so to speak.
South Korea is quickly shaping to become a refuge for crypto companies, despite their bans on ICO listings.
Overall every part of the continent has its segment of the blockchain it is good at. But does this translate to western countries such as the USA and Europe?
The Blockchain in Europe
Gibraltar and Switzerland were one of the first regions that saw the value of cryptocurrencies and decided to inject them into their fintech sector. Not only was this a good decision in terms of customer influx, but also an amazing way of forming a fintech hub and benefiting from increased revenue tax.
Europe is one of the regions that’s good at having filthy rich mini-states or city-states, and blockchain was another way of reinforcing that segment. But larger countries are not too far behind as well.
When it comes to cryptocurrency regulation, the EU or the EEA is not too strict with its decisions. In fact, it can be called a grey zone of sorts. The only thing that local crypto exchanges and companies are required to do is provide tangible KYC terms and disclose customer trading data to local tax agencies looking to incorporate crypto profits into the capital gain taxes.
Overall it’s a relatively effective but centralized system. But there are people who still struggle with incorporating cryptos in their lives.
Germans struggling to buy cryptos
When the blockchain was first introduced, the Germans were immediately on board, pouring in millions of Euros into the market. In fact, there are quite a lot of crypto millionaires in Germany currently. But the small-time investors starting to having trouble in buying cryptos directly from the exchanges as the new regulation was being installed.
Most of these new investors opted for trading on Binance or any other foreign exchange, which needed direct transactions. Due to the fact that crypto regulation was still a hot topic, bank transfers to the exchanges were out of the question, something third-partyish needed to be found.
But it was not long after that many crypto exchanges and CFD brokers started using PayPal as a direct transaction source. According to a detailed guide on buying Bitcoin with PayPal by coincierge.de, nearly every major financial company in Europe was ecstatic of using PayPal.
Even today, PayPal is considered as the desirable way of entering the crypto market, as fewer and fewer Europeans are starting to utilize crypto wallets. Furthermore, it was the question of security.
After seeing so many crypto companies being hacked, such as Cryptopia and even Binance it is no surprise that trusted platforms such as PayPal would gain the upper hand.
Scandinavians investing in the development
Countries like Norway and Sweden are known for their love of everything digital. Sweden in particular because it’s moving most of its financial sector towards fintech by reducing cash payments as much as possible and even utilizing chip implants for resource preservation.
Norway is at the forefront of crypto adaptation in regards to centralization. A small city was made independent not too long ago which would be using cryptos as its main currency for the local economy. Furthermore, Norway has invested heavily in forming government-backed blockchain faculties in its leading tech universities, and according to reports it is overflowing with applications.
The future of blockchain in Europe
Even though it may be just a handful of countries that are starting to widely accept cryptocurrencies in their economies, such as Norway and Sweden, it is guaranteed that this relationship will spill over in neighboring countries.
As the technology keeps getting developed and more and more tied to the digital economy, it will soon be apparent that forming a decent digital economy plan for a country is impossible without the incorporation of cryptocurrencies. Once there were two options for payments, you either paid with cash or with a card.
Now, however, once cash is removed from the equation, something will be required to fill the void for variation sake. And cryptocurrencies are a perfect fit.
It is expected that by 2025, the EU regions as well as the EEA, will have constant crypto payments occurring day-by-day, both on the retail as well as the corporate level.