Jordanian Government Embraces Blockchain Technology for Efficiency and Growth
Jordanian officials have recently announced ambitious plans to implement blockchain technology in government operations, aiming to enhance efficiency and spur economic growth in the country.
After years of testing the waters with Web3 technology, Jordan has taken the first steps towards full-scale blockchain integration for official processes. The decision has been approved by the Jordanian Council of Ministers, marking a significant milestone in the country’s technological advancement.
The shift towards blockchain as the foundational layer for government processes is seen as a way to address existing challenges such as bureaucracy, insecure systems, and a lack of transparency and public trust. By leveraging blockchain technology, Jordan hopes to improve operations transparency and enhance the delivery of public services.
Advocates of Web3 believe that embracing blockchain will not only streamline government operations but also stimulate economic growth, especially as Jordan looks to diversify its economy beyond oil.
Benefits of Blockchain Integration
By utilizing smart contracts and the peer-to-peer nature of blockchain technology, Jordanian civil servants can automate tasks and reduce administrative costs. The implementation of blockchain is also expected to enhance data protection for citizens and explore digital identity systems based on Web3.
Experts estimate that Jordan could save up to $5 billion in government spending by incorporating blockchain into existing processes. These savings would come from fraud prevention, blockchain-based elections, and improved supply chain efficiencies.
Developing Talent Pool and Legislation
To support the transition to blockchain technology, Jordan plans to enhance its talent pool by training civil servants in Web3 skills. Additionally, the country aims to introduce blockchain education in high schools and universities to prepare the next generation for the digital era.
The next steps in the process involve drafting and approving legislation to formalize the policy, followed by royal assent from the King. In mid-2024, Jordan launched a national blockchain network as a key milestone in integrating the technology into government operations.
Regional Landscape and Future Outlook
While Jordan is embracing blockchain technology at a gradual pace, other Gulf countries like Saudi Arabia and the UAE are rapidly adopting blockchain regulations. This has attracted global Web3 companies to establish a presence in these countries, driving innovation and economic growth.
Meanwhile, countries like Iran and Bahrain are exploring central bank digital currencies (CBDCs) but remain cautious about legalizing digital assets for commercial use. Analysts predict that the Middle East region will experience significant growth in blockchain adoption and market valuation in the coming years.
SCER Proposes Digital Asset Adoption in Syria
In a separate development, the Syrian Center for Economic Research (SCER) has submitted a proposal to Syria’s transitional government advocating for the legalization of digital assets, including Bitcoin (BTC).
The SCER’s proposal aims to revitalize Syria’s economy by embracing blockchain technology and digital assets. The group, comprising academics, engineers, and business leaders, seeks to shape policy direction for the new regime and promote economic growth through innovative solutions.
Central to the proposal is the adoption of BTC and other digital assets to develop a digital economy and decentralized banking infrastructure in Syria. The SCER also recommends establishing a regulatory framework for BTC trading and mining activities to foster growth in the local Web3 ecosystem.
CBDC and Economic Revival
In addition to legalizing digital assets, the SCER proposes the issuance of a central bank digital currency (CBDC) backed by “liquid hard assets” like BTC or gold. This move aims to digitize the financial system and enhance local payment services in Syria.
The SCER emphasizes the importance of granting mining licenses for digital assets to boost the country’s economy. The group advocates for citizens’ rights to self-custody of their digital assets and recommends measures to avoid inflationary monetary policies.
Compliance with Sanctions
The SCER clarifies that its recommendations are not intended to circumvent international sanctions against Syria. The group stresses the need for lifting sanctions through legal and political processes in accordance with international law.
As countries like Russia explore digital assets to navigate sanctions, Syria aims to leverage blockchain technology and digital assets for economic growth within a compliant framework.
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