There is a major misconception that the digital economy will take a full swing in countries like the United States and the United Kingdom, when there are factual examples of Northern Europe being already way beyond the adoption point.
Sure the US and the UK may have a developed the Fintech sphere, but nothing there can come close to what countries like Sweden, Norway, and Estonia have managed to achieve. For the sake of representation, it’s best to not mention Asian countries like Japan or South Korea, as they’re already way beyond the rest of the world in terms of technology. Let’s focus on Sweden as an example.
Why is the blockchain relevant in Northern Europe?
On the surface, Sweden looks like a utopia of people living in the perfect state under a perfect economy with perfect lives. Although much of that is true, it needs to be considered what exactly allows Swedes to operate such an efficient economy, even though the taxes are through the roof.
One such example is the perception of cash that has been rapidly changing in Sweden. According to estimates, only 11% of people rely on cold hard cash during the day, while the rest opt for digital payments and processes.
Having millions rely on digital banking is sure to become an issue in the future, as there will be no diversification between platforms, add to that the ever-growing rate of fees and we get a dissatisfied population that pays most of its transactions as commissions.
Crypto companies have a huge niche to occupy in this country, as it’s starting to become more and more friendly towards the blockchain. Things like microchips and fully mobile-friendly financial platforms are no longer a work of science-fiction there. Furthermore, due to an already existing tech-savvy population, crypto companies have the chance of taking the market share without too many educational or promotional campaigns.
Swedes know what crypto is, in fact their interest in investing in Bitcoin has been growing exponentially even after the 2017 market slump as illustrated by a Swedish investment company Finanso.se’s BTC guide through google trend analysis and etc. All that Swedes need is a direct source to get them en masse.
Why should Norway even bother?
Now let’s move to Sweden’s next-door neighbour, Norway. Norway’s relationship with cryptocurrencies is nothing to write home about at this point, but they do have more interest in cryptos according to Google Trends. However, this does not put them in a category with large adaptation.
The primary reason why Norway needs to start thinking about crypto adoption is due to its economy, which is extremely linear. A large portion of Norway’s income is reliant on the oil that they produce, but considering the advancements in alternative energy sources, the prices on oil are sure to plummet once we reach peak development. Sure it may happen in a decade or two, but in terms of country economy plans, that’s a very small amount of time.
When it comes to natural resources, Norway has not that much to offer aside from maybe fish, therefore it needs to find some kind of diversification method to keep its economy afloat when the oil recession does hit.
One thing that Norway has going for it, in terms of crypto adoption is Liberstad, which is a smart city located within Norway. It operates under its own laws (based on Norway’s) and promises to use cryptocurrency as its main driving force.
This city could act as a perfect example of how Norway can benefit from cryptocurrency adoption in the long run, should it succeed. And considering that there’s nothing else like it aside from Busan, it’s highly probable that European crypto tourists will visit Liberstadt at least once or twice.