What makes a blockchain hotbed?

This week we saw the latest crypto exchange head to Argentina, with the news that Huboi Group will open an over-the-counter service and fiat gateway before the end of October.

Argentina has become somewhat of a blockchain hotspot, inspired by all the wrong factors. Crisis-hit emerging market nations constantly hit with fiat currency devaluation are increasingly turning to Bitcoin and other cryptocurrencies so it’s easy to understand why crypto would thrive there.

But economic unrest isn’t the only reason for blockchain tech to succeed in a particular geographical location. Often, there are several more positive factors that help certain areas become blockchain hotbeds.

Island records

In the summer of 2018, Malta was tagged “The Blockchain Island” by some after providing a stable legal framework that allowed crypto firms operate with some semblance of certainty. Binance, for one, seemed to like it and launched in Malta in February 2019.

The Maltese authorities should, of course, be congratulated for their efforts in welcoming crypto with open arms and, no doubt, the local economy has already seen some benefits, not least in terms of job creation.

But it’s not the only island making waves in the crypto space. The Isle of Man, where we at SolutionsHub are based, is also fast becoming a go-to destination for blockchain businesses.

Expanding horizons

CoinCorner, MetaVault, Unikrn, Quanta, Qadre and CasinoCoin are among the blockchain-based projects that have chosen the Isle of Man as their home.

It is testament to the work done by the Island’s government to embrace blockchain tech, setting out clear laws and guidance for businesses to operate. 

Earlier in 2019, the government established The Isle of Man Blockchain Office to “to support and guide businesses through current (and future) regulatory landscapes, focused on expert-led assistance from day one”.

And then there is the Isle of Man Blockchain Sandbox is our testbed proposition. The Sandbox has been created for companies, providing a collaborative space for the live testing of innovative tech products, services and delivery mechanisms where the risks to ordinary financial consumers and the financial system are strictly contained.

The Sandbox is “designed to position the Isle of Man as the premier jurisdiction for blockchain-based businesses to develop, test and perfect their product before launching on the global market”.

I know from first-hand experience that several companies have already taken advantage of these platforms and, just like Malta, the Isle of Man’s economy is already reaping the rewards of such open-mindedness. 

Watch and learn

The motivation for crypto companies moving to Argentina is clearly the demand for an alternative to fiat, which in itself highlights one of the main strengths of blockchain tech - to provide a decentralised payment method. But nations and territories serious about blockchain should look to two small islands for inspiration - or risk being left behind.