Blockchain At The State Level: Uzbekistan, China, Dubai

Blockchain At The State Level: Uzbekistan, China, Dubai

The technology of the blockchain is growing rapidly. At the state level blockchain is successfully used in a many countries. One of the first examples was Estonia, that adopted blockchain technology for government. A common registry blockchain database in security, legislation, health and judicial systems was compiled. Gibraltar was one of the first countries, approved its own blockchain exchange (GBX).

In blockchain technology, the state system considers security, reliability, absence of a third party, functionality and mobility to be attractive. The leading application industry, according to PWC research, is the financial sector. Promising areas are health care, energy, utilities and industrial production. Based on statistics for 2018, among the countries actively using blockchain, the first place is taken by the United States. However, in the next 5 years, according to experts, it will be replaced by China.

Blockchain in China

Confirming this prediction, on October 24, 2019, the President of China stated that his country needs to "take the leading position in the emerging field of blockchain".  According to him, “China already has a solid foundation to develop blockchain technology." At the moment, for example, the legal rules for the operation of business on the basis of blockchain has been drawn up.  The Ministry of Commerce Department has been developing blockchain solutions in industries ranging from credit reporting to e-commerce and the financial industry. The tax bureau was studying a project on the prospect of a new technology in verifying payments.

According to the new decree of the President of China, the Government will support the integration of decentralized technology with the real economy. This contributes to solving the current problems in the banking and financial spheres. Despite the current ban on cryptocurrency trading in China, the plans are to develop and launch its own national digital currency.

Following President statement, National People’s Congress in China passed a cryptography law. It will come into force on January 1, 2020. According to Coindesk, the law will encourage research and development in commercial cryptography technologies, that creating an inclusive standardized regulatory system for the market. It also aims to support public exhibitions to promote cryptography among government officials, companies and social groups.

Blockchain in Dubai

Dubai in this series of innovators plans to become “the first city fully powered by Blockchain by 2020". The Dubai Blockchain strategy developed is based on three pillars: Government Efficiency, Industry Creation and International Leadership. One of the goals of the technology implementation is the move to a paperless transaction system. It is estimated that this will speed up and facilitate the renewal of licenses, payment of bills and visa applications. The paperless blockchain system will potentially save the state up to $1.5 billion a year. The Dubai government believes that " blockchain will facilitate thousands of new business opportunities in the private sector. Among the industries expected to most benefit are real estate, financial services, healthcare, transportation, energy, retail and tourism".

Blockchain in Uzbekistan

Along with other countries, the Government of Uzbekistan drew attention to the developing blockchain market. Already in 2018, the President of Uzbekistan signed a decree about "measures for the development of the digital economy". The main goals were:
- diversification of the investment market with the use of blockchain and new technologies (mining, crowdfunding, smart contract, etc.),
-training of specialists who will work in the modern IT-sphere,
- state assistance in the development and implementation of innovative ideas,
-cooperation with international and foreign IT organizations,
- creation of a legal base for the integration of blockchain technology.

A special place is given to the creation of legal regulations for the purchase and sale of cryptocurrency. However, at the moment, exchange transactions related to crypto assets are not taxed, and income is not recorded in the tax base.

The government of Uzbekistan predicts the adoption of blockchain technologies in state level from January 1, 2021. Under the program, a modern system will be used in many state areas, including public procurement, provision of public services, verification of personal data, registers and classifiers. The new technology should help to optimize business processes and clearing operations, payments, trade Finance and loans.

According to preliminary estimates, by 2030 it is planned to transfer the state document circulation to a new system. According to experts, decentralized technology is promising in healthcare (the creation of a single database of medical books in the country), banking and real estate sector.

Last September, the President of Uzbekistan issued a decree on the establishment of the Fund to support the development of the digital economy “Digital Trust”. Its goal was to consolidate "investment, financial and other resources in the most priority areas of the digital economy." The Fund plans to attract investors and implement promising projects, in particular, in the crypto-exchange industry, projects for training in the development and implementation of blockchain. The platform also supports startups that use digital technologies and plan to turnover crypto assets.

Blockchain in Focus

The positioning of Uzbekistan as a and active, developing and perspective market is confirmed by various large-scale blockchain events that are regularly take place in the country. The First International Forum ItConf.Asia will be in Tashkent on November 16, 2019. Partners of the forum are the Youth Union and the Ministry of Informatics of Uzbekistan. The organizers are the Decentralized Financial System Okschain and Specialized Industry Forum Terra Crypto, dedicated to digital mining.

According to the organizers of the event, there will take place 26 experienced, influential speakers from 15 countries (Uzbekistan, Russia, Israel, Kazakhstan, USA, China, South Korea, India, etc.).

The central topics of the forum will be blockchain, IT-technologies, marketing, investments. First of all, the event will be aimed at networking professionals, investors and a wide audience. This will give the audience a chance to get the tools to develop their own projects. Speakers will discuss the forecasts of development of the blockchain in your country and in international relations. A significant place will be occupied by the issues of investment, trading, the cases of current technological projects. According to the organizers, the target audience of the forum are investors, managers, owners of companies, as well as employees of state organizations, government officials.

Special attention will be paid to digital education. This is due to the fact that at the moment, despite the potentially large volumes of the IT market in Uzbekistan, there is a critical shortage of specialists in the blockchain industry of the country. There will be topics about modern education, how to get a new IT-specialties and prospects of young professionals.

Discussions are planned on the application of decentralized technologies in the market in general and several specific industries: mining, agriculture, banking, corporate solutions, etc. Separate blocks will be devoted to legal aspects of work with new technologies, modern legal sphere.

The exhibition of IT-industry projects will be open all day. Innovative projects of IT, iOt, blockchain companies that are under development or have already entered the international market will be demonstrated.

According to the ITConf.Asia organizer Alexandr Mamasidikov, Marketing Director at IEO Agency and Okschain, "blockchain use cases are expanding every year. The IDC report says that spending on blockchain solutions for 2019 will increase by 88% compared to last year. By 2022, growth will reach 76%. ITConf.Asia gives a chance to become a member of the global synergy of the IT-industry and blockchain and learn about new projects in Uzbekistan and around the world".

The sphere of blockchain is moving to a new level. Already, new technologies are being evaluated and applied in public activities. According to PWC research, in 11 years, 10-20% of global economic infrastructures will run on blockchain. All this testifies to the scalability and prospects of the technology. If recently blockchain was associated only with cryptocurrency, now it is clear that blockchain is much more and more influential than just a digital currency. This is a way to strengthen the state structure towards reliability, transparency, mobility and security. The plans have moved to the realization stage and the race to introduce blockchain at the state level has already begun.

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