![\"Blockchain](\"\/blog\/wp-content\/uploads\/2021\/01\/Blockchain-use-cases-for-government.png\")
<\/p>\nBlockchain continues transforming business sectors to the form we haven\u2019t used to see and imagine. This year promises to be big for blockchain, and today, we invite you to make sure of it, with six important blockchain trends to watch in the next twelve months.<\/p>\n
Be sure to invest in blockchain, if you haven\u2019t done it already!<\/p>\n
The market of blockchain-based frameworks is getting torn apart by fierce competition, especially between public blockchains. More choice makes consumers more demanding, so the dominance belongs to the ones that offer new solutions, such as decentralized financial ecosystems and protocols interoperable with different blockchains.<\/p>\n
One of the most persistent \u201cstumbling blocks\u201d that every blockchain developer encounters on its way is regulations. Currently, government-backed payment systems are mostly unwilling to welcome private ones like them, for obvious reasons. However, society reacts negatively to events such as Libra\u2019s legal banning or a lawsuit against Telegram\u2019s digital asset.<\/p>\n
Perhaps, blockchain\u2019s novelty and relative nascence are the main reasons why it loses the fight against governments. On the other hand, the users already adopted individual blockchain solutions, and some trust blockchain even more than banks.<\/p>\n
There\u2019s no way back for blockchain, and traditional banks realize that; for example, JP Morgan uses blockchain to automate margin payments, while Northern Trust tests blockchain-based fractional bonds.<\/p>\n
Though blockchain\u2019s role in government operations has been considered doubtful for a long time, small states were the first to give it a try. Then it came the turn of larger nations. For instance, Japan already admitted that blockchain could play a decisive role in the fight against COVID-19. Thailand is in works on a new storage system for legal documents. Also, the Columbian authorities already support initiatives related to blockchain payment systems.<\/p>\n
All these cases tell us nothing about blockchain\u2019s usage in government operations, except for Vietnam that uses a dedicated blockchain solution for digital transformation \u2014 akaChain, and South Korea that uses blockchain for registering driver\u2019s licenses.<\/p>\n
But China is, perhaps, the most vivid example; last year, the country issued its own blockchain-enabled digital asset. This move is likely to shake the global economy, yet the real effect is hard to evaluate for now.<\/p>\n
<\/p>\n
Indeed, regulators will continue tightening the law, introducing even more limitations to the blockchain sector. And since the pandemic precipitated the digitalization of the economy, regulators closely monitor digital banking and blockchain. In the latter\u2019s case, more realistic blockchain applications that promise real help for healthcare<\/a>, supply chain<\/a>, and other industries cause keen interest from businesses.<\/p>\n In the light of the developing fintech, more financial transactions occur outside traditional institutions, making those impossible to ignore from the regulatory viewpoint. At the same time, EU legislators are increasingly advocating for creating a global regulatory system for digital assets.<\/p>\n China\u2019s DCEP digital asset introduced last year made the country one of the most interesting blockchain hubs to watch. On the other hand, these are a series of blockchain projects in the supply chain<\/a> intended to disrupt the industry.<\/p>\n Meanwhile, India demands more clarity in blockchain regulations. After the ban on crypto banking was reconsidered and eventually canceled, the digital assets industry has grown massively along with the movement to proof of stake.<\/p>\n Overall, blockchain\u2019s stance in Asia during the last year was characterized by an accelerated transition to digital assets. The pandemic forced galleries and exhibitions to turn online, so digital became the obvious option.<\/p>\nAsia Keeps Rising<\/h3>\n
Central Banks and Big Tech to Compete<\/h3>\n