A Little Background
As recently reported, the Chinese government took matters into their own hands with Cryptocurrencies and ordered their local authorities to get a move on with the roll out of their Cryptocurrency programs. Following on from this, another government has stepped up and is now pushing forward at great speed with the implementation of the digital economy throughout the country.
The Presidential Decree
The President of Uzbekistan has just signed a decree to get things moving. His aim is to entice the country to really develop both Cryptocurrencies and Blockchain in a bid to move the country forward. The decree includes mining, crowdfunding and trading as well as the execution of introduction of Cryptocurrencies. The decree is extremely thorough – as would be expected – and highlights the main tasks that need to be put into action sooner rather than later. A complete legal framework will be developed and put into effect as part of this decree. The new decree also suggests that companies and investors in the Cryptocurrency will receive tax rewards (i.e. they will not pay tax) for their investments made. Cryptocurrencies are exempt from taxation. This will be an extremely attractive offer for many.
Other focal points in the Presidential decree include ensuring that staff are trained and receive continual development in order to make the most of Blockchain technology in the public sector. The country is also very keen to have link with other countries in order to strengthen their Cryptocurrency and Blockchain knowledge. Additionally, JSC Uzbekenergo and UzbekHydroEnergo – who are both hydroelectric power suppliers – will be completing a pilot project to see how well they can support the new digital economy. The project will initially last for three months.
New Government Agency
There is a taskforce already working on the decree – the National Project Management Agency (NAPU). Although only recently set up, this agency will report directly to the President’s Office and will be responsible for taking things forward with all things Cryptocurrency and Blockchain. There is no time to waste either because the decree stipulates a 2020 cut off point the Blockchain program to be rolled out by. All government agencies are expected to bring Blockchain onboard and use its new technology to support them with many of their roles including data verification, corporate governance and many others.
Although there are several countries and states in the US and Canada which are still very concerned about Cryptocurrencies and Blockchain, others are totally immersing themselves in the new generation of finance and technology. As has been said on many occasions, the uncertainty of this new industry is the main reason that so many have worries. That and the lack of regulation that is out there at the moment. But with countries such as Uzbekistan and Malta taking the lead with legalizing the industry it surely cannot be that long before others follow on and realise what they could be missing out on. It really is non stop in the Cryptocurrency industry and no wonder that many struggle to keep up.