Jordanian officials have announced ambitious plans to turn to blockchain technology for government operations, seeking efficiency and economic growth.
According to a report, the Middle Eastern country has taken preliminary steps toward full blockchain implementation for official processes after years of testing Web3 waters. The plan has received approval from the Jordanian Council of Ministers, a move widely seen as the first domino to fall.
According to the report, the new policy direction will see blockchain as the foundational layer for Jordanian government processes, effectively phasing out the old order. Critics argue that the existing system suffers from a range of challenges, including bureaucracy, insecure systems and a dire lack of transparency and public trust in the system.
The large-scale push for blockchain is expected to increase the transparency of business operations and improve the delivery of public services. Web3 stalwarts argue that the country’s decision to embrace the emerging technology will unleash a wave of economic growth as Jordan looks beyond oil.
Using smart contracts, Jordanian officials can automate mundane tasks, with the peer-to-peer (P2P) nature of blockchain helping to save administrative costs. There are ambitious plans by officials to rely on blockchain to protect citizens’ data as they experiment with Web3-based digital identity systems.
Experts believe that the Gulf state can save up to $5 billion in government expenditure by integrating blockchain into existing processes. Some of the cost savings are expected to come from fraud prevention, blockchain-based elections and improved supply chain efficiency.
A closer look at blockchain policy reveals plans to deepen the existing talent pool with blockchain experts to fuel the coming Web3 renaissance. Jordan will commit funding to equip existing officials with Web3 skills while introducing the emerging technology to high schools and colleges.
The next steps include the issuance and approval of draft legislation for the policy and subsequent royal assent by the King.
In mid-2024, the country unveiled a national blockchain network in its first attempt to integrate the technology into existing government processes.
While Jordan is taking a cautious step towards blockchain, other Gulf countries are taking a frenetic approach. Saudi Arabia and the United Arab Emirates (UAE) have introduced robust regulations, resulting in an influx of global Web3 companies eager to establish themselves in their countries.
Others, such as Iran and Bahrain, are pitching tents with central bank digital currencies (CBDCs) but remain wary of legalizing digital assets for trading. Recent adoption figures put the region at the top of the list, with analysts predicting local market valuations will rise in the coming years.
SCER proposes the adoption of digital assets for Syria
In other news, the Syrian Center for Economic Research (SCER) has submitted a proposal to the Syrian transitional government, aiming at the legalization of BTC and other digital assets.
According to a post on The SCER, a non-governmental group made up of academics, engineers and a wide range of business leaders, is leading the policy direction of the new regime.
The latest effort aims to kick-start the development of a digital economy and decentralized banking infrastructure across Syria. Central to the SCER’s plan is BTC, with the group urging the transitional government to embrace blockchain technology and other digital assets.
The SCER reinforces the call for a regulatory playbook for BTC trading and mining activities by private and institutional players. Currently, Syria is playing catch-up with the rest of the Middle East, with the war hampering the growth of the local Web3 ecosystem.
Legalizing BTC and other digital assets is just one piece of the puzzle, with the SCER pushing for a CBDC to improve the digitalization of the financial system. To achieve this, the group advocates the digitalization of the Syrian pound on distributed ledgers to increase local payment services. Instead of pushing for support with fiat, the proposal calls for backing the CDBC with “liquid hard assets” such as BTC or gold.
The group claims that approving mining permits for BTC and other digital assets will play a key role in improving Syria’s battered economy. In line with the spirit of Web3, the SCER urges the transitional government to guarantee the “right of citizens to full self-management over their digital assets.”
Other recommendations include limiting reliance on “extortionate lending” and avoiding inflationary monetary policies that can stifle economic growth.
Not intended to circumvent sanctions
In a separate statement, the SCER clarified that the recommendations are not intended as a strategy to circumvent existing sanctions against the country.
“We also emphasize that this is NOT intended to circumvent international sanctions. We believe that sanctions should be URGENTLY lifted through legal and political processes in accordance with international law,” the SCER said.
Russia is currently experimenting with digital tools as a solution to Western-backed sanctions following its 2022 invasion of Ukraine. Although the country has achieved some measure of success, pre-emptive measures by the US have forced the country to pitch its tent under a digital debris.
Watch: Exploring emerging technology in the startup world
title=”YouTube video player” frameborder=”0″ allow=”accelerometer; autoplay; clipboard-write; encrypted media; gyroscope; picture-in-picture; web-share” referrerpolicy=”strict-origin-when-cross- origin ” allowfullscreen=””>
Credit : cryptonews.net
