In a bid to streamline governmental operations and stimulate economic growth, Jordanian officials have revealed plans to integrate blockchain technology into their systems. Taking the preliminary steps towards the comprehensive implementation of blockchain for official processes, the Middle Eastern country has been testing the waters of Web3 for several years. The strategy has obtained approval from the Jordanian Council of Ministers, marking a crucial milestone in the shift toward blockchain adoption.
Critics of the existing system argue that it is plagued by numerous challenges, such as bureaucracy, insufficient security, and a severe deficit of transparency, leading to public distrust. The shift to blockchain is anticipated to enhance transparency in operations and improve public service delivery. Advocates of Web3 believe that this move will stimulate economic growth as Jordan broadens its focus beyond oil.
Exploiting smart contracts, Jordanian civil servants can automate routine tasks, and the peer-to-peer (P2P) nature of blockchain can help cut administrative costs. Officials have ambitious plans to utilize blockchain to safeguard citizens’ data while exploring Web3-based digital identity systems.
The integration of blockchain into existing processes could save the Gulf State up to $5 billion in government spending, according to experts. Significant cost savings are expected to be derived from fraud prevention, blockchain-based elections, and improved supply chain efficiencies.
A deeper analysis of the blockchain policy reveals plans to enhance the existing talent pool with blockchain experts to drive the upcoming Web3 revolution. Jordan intends to invest in equipping current civil servants with Web3 skills and introducing this emerging technology into high schools and universities.
The next steps involve issuing and approving draft legislation of the policy and the subsequent royal assent by the King. In mid-2024, the nation launched a national blockchain network as its first step toward integrating the technology into existing governmental processes.
While Jordan cautiously adopts blockchain, other Gulf countries such as Saudi Arabia and the United Arab Emirates (UAE) are implementing robust regulations, attracting an influx of global Web3 companies interested in establishing operations in these countries. Others like Iran and Bahrain are exploring central bank digital currencies (CBDCs), but remain hesitant to legalize digital assets for commerce. Recent adoption metrics demonstrate that the region is leading the way, with market valuation predictions indicating substantial growth in the coming years.
Meanwhile, the Syrian Center for Economic Research (SCER) has submitted a proposal to Syria’s transitional government to legalize BTC and other digital assets. The SCER, a non-governmental group made up of academics, engineers, and business leaders, is driving policy direction for the new regime. The goal is to stimulate the development of a digital economy and decentralized banking infrastructure across Syria. Key to the SCER’s plan is BTC, urging the transitional government to embrace blockchain technology and other digital assets.
The SCER is advocating for the establishment of a regulatory framework for BTC trading and mining activities. The group is also pushing for a CBDC to improve the digitalization of the financial system. The proposal calls for the CBDC to be backed by “liquid hard assets” like BTC or gold. The SCER clarified in a separate statement that the recommendations are not intended as a strategy to circumvent existing sanctions against Syria.
