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Jordanian officials have disclosed 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-scale 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 regarded as the first domino to fall.
Per the report, the new policy direction will see blockchain as the base layer for Jordan’s government processes, effectively phasing out the old order. Critics argue that the existing system suffers from a raft of challenges, including bureaucracy, insecure systems, and a dire lack of transparency and public trust in the system.
The wholesale push to blockchain is expected to increase operations transparency and improve service delivery of public services. Staunch supporters of Web3 argue that the country’s decision to embrace the emerging technology will trigger a wave of economic growth as Jordan sets its sights outside oil.
Leaning on smart contracts, Jordanian civil servants can automate mundane tasks with the peer-to-peer (P2P) nature of blockchain will help save administrative costs. There are ambitious plans by officials to rely on blockchain to protect citizens’ data while experimenting with Web3-based digital identity systems.
Experts opine that the Gulf State can save up to $5 billion in government spending by integrating blockchain into existing processes. A chunk of the cost savings is expected to trickle in from fraud prevention, blockchain-based elections, and improved supply chain efficiencies.
A closer look at the blockchain policy reveals plans to deepen the existing talent pool with blockchain experts to power the incoming Web3 renaissance. Jordan will sink funds to equip existing civil servants with Web3 skills while introducing the emerging technology into high schools and universities.
The next steps will involve issuing and approving draft legislation of the policy and subsequent royal assent by the King.
In mid-2024, the country unveiled a national blockchain network as its first salvo at integrating the technology into existing government processes.
While Jordan is making a tentative push toward blockchain, other Gulf countries are adopting a frenetic approach. Saudi Arabia and the United Arab Emirates (UAE) have initiated robust regulations, resulting in an influx of global Web3 companies keen on setting up shop in their countries.
Others like Iran and Bahrain are pitching their tents with central bank digital currencies (CBDCs), but they remain wary of legalizing digital assets for commerce. Recent adoption metrics put the region at the top of the pile, with analysts predicting that the valuation of local markets will spike in the coming years.
SCER proposes digital asset adoption for Syria
In other news, the Syrian Center for Economic Research (SCER) has submitted a proposal to Syria’s transitional government seeking the legalization of BTC and other digital assets.
According to a post on X (formerly Twitter), the SCER’s proposal seeks an economic revival for the war-torn country, opting to pitch its tent with innovative solutions. The SCER, a non-governmental group comprising academics, engineers, and a broad spectrum of business leaders, is leading the charge for policy direction for the new regime.
The latest push is designed to trigger 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 is amplifying the call for establishing a regulatory playbook for BTC trading and mining activities by retail and institutional players. Currently, Syria has to play catchup with the rest of the Middle East, with the war stunting the growth of the local Web3 ecosystem.
Legalizing BTC and other digital assets is only one piece of the jigsaw puzzle, with the SCER pushing for a CBDC to improve the digitization of the financial system. To achieve this, the group advocates the digitization of the Syrian pound on distributed ledgers to augment local payment services. Rather than pushing for backing with fiat, the proposal calls for the CDBC to be backed by “liquid hard assets” like BTC or gold.
The group argues that approving mining licenses 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 citizens’ “right to full self-custody of their digital assets.”
Other recommendations include limiting the reliance on “usurious loans” and steering clear of inflationary monetary policies capable of stifling economic growth.
Not intended to skirt sanctions
In a separate statement, the SCER clarified that the recommendations are not intended to be a strategy for circumnavigating existing sanctions against the country.
“We also emphasise that this is NOT meant to circumvent international sanctions. We believe that sanctions should be lifted URGENTLY through legal and political processes in accordance with international law,” said the SCER.
Russia is currently experimenting with digital assets as a workaround against Western-backed sanctions following its invasion of Ukraine in 2022. While the country has scored a measure of success, preemptive moves from the U.S. have forced it to pitch its tent with a digital rubble.
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