Jordanian officials have unveiled ambitious plans to turn to blockchain technology for government operations, with an eye toward efficiency and economic growth.
The Middle Eastern country has taken preliminary steps toward large-scale blockchain implementation for official processes after years of testing the Web3 waters, according to a report. The plan received approval from the Jordanian Council of Ministers, a decision widely seen as the first domino to fall.
According to the report, the new policy direction will consider blockchain as the base layer of Jordanian government processes, thereby gradually eliminating the old order. Critics argue that the existing system suffers from a range of challenges, including bureaucracy, insecure systems and a distinct lack of transparency and public trust in the system.
The massive push towards blockchain is expected to increase transparency of operations and improve public service delivery. Strong supporters of Web3 say the country’s decision to adopt the emerging technology will spark a wave of economic growth as Jordan turns its attention away from oil.
By leveraging smart contracts, Jordanian civil servants can automate mundane tasks through the peer-to-peer (P2P) nature of blockchain, which will help reduce administrative costs. Officials plan to rely on blockchain to protect citizen data while experimenting with Web3-based digital identity systems.
Experts estimate that Gulf states can save up to $5 billion in public spending by integrating blockchain into existing processes. Much of the cost savings are expected to come from fraud prevention, blockchain-based elections, and improving supply chain efficiencies.
A closer look at blockchain policy reveals plans to deepen the existing talent pool with blockchain experts to fuel the impending Web3 renaissance. Jordan will invest funds to equip existing civil servants with Web3 skills while introducing the emerging technology to high schools and universities.
The next steps will be to publish and approve a draft policy bill and obtain subsequent royal assent from the King.
In mid-2024, the country unveiled a national blockchain network as a first salvo for integrating the technology into existing government processes.
While Jordan takes a tentative step toward blockchain, other Gulf countries are taking a frenzied approach. Saudi Arabia and the United Arab Emirates (UAE) have implemented strict regulations, leading to an influx of global Web3 companies eager to set up operations in their countries.
Others, like Iran and Bahrain, are pitching their tent with central bank digital currencies (CBDCs), but remain cautious about legalizing digital assets for commercial purposes. Recent adoption metrics put the region at the top of the list, with analysts predicting that the valuation of local markets will increase in the coming years.
SCER proposes adoption of digital assets for Syria
Separately, the Syrian Center for Economic Research (SCER) submitted a proposal to the Syrian transitional government to legalize 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 charge for the policy direction of the new regime.
The latest initiative aims to trigger the development of a digital economy and decentralized banking infrastructure across Syria. BTC is at the heart of SCER’s plan, with the group urging the transitional government to adopt blockchain technology and other digital assets.
The SCER amplifies the call for the establishment of a regulatory playbook for BTC trading and mining activities by retail and institutional players. Currently, Syria needs to catch up with the rest of the Middle East, with war hampering the growth of the local Web3 ecosystem.
The legalization of BTC and other digital assets is just one piece of the puzzle, with 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. Rather than calling for fiduciary support, the proposal calls for CDBC to be backed by “liquid and hard assets” like BTC or gold.
The group says approving mining licenses for BTC and other digital assets will play a key role in improving Syria’s ailing economy. In accordance with the spirit of Web3, SCER urges the transitional government to guarantee citizens “the right to full custody of their digital assets”.
Other recommendations include limiting the use of “usurious loans” and avoiding inflationary monetary policies that could stifle economic growth.
Not intended to circumvent sanctions
In a separate statement, the SCER clarified that the recommendations are not intended to constitute 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 must be lifted URGENTLY through legal and political processes in accordance with international law,” SCER said.
Russia is currently experimenting with digital assets as a workaround to Western-backed sanctions following its invasion of Ukraine in 2022. Although the country has achieved some success, preemptive measures from the United States have forced it to pitch your tent with digital rubble.
Watch: Exploring Emerging Technologies in the Startup World
title=”YouTube Video Player” frameborder=”0″ allow=”accelerometer; autoplay; write to clipboard; encrypted media; gyroscope; picture-in-picture; web sharing” referrerpolicy=”strict-origin-when- cross-origin”allowfullscreen=””>
