This model has been planned and announced by the Prime Minister of the country Adrian Hasler at the Finance Forum in Vaduz. For those who are not aware about blockchain technology and its systems, let us briefly discuss how Blockchain is shaping up our future.
Blockchain Technology – What Is It?
You may have heard about Bitcoin or Cryptocurrency before, and for people who don’t know much about it, this term might seem a little conceptual with a very sizeable amount of information available on the surface.
With Blockchain technology, a large number of people can efficiently write entries into a record of information, and users from different communities can authorize how the recorded information is updated and amended. Blockchain technology is one of the most important elements of Cryptocurrency, and without it, various digital-based currencies would not cease to exist.
Liechtenstein Blockchain Law
The government of Liechtenstein is planning to introduce different changes and amendments into its Blockchain law, which will be initiated from summer 2018.
The law mostly focuses on various business models that are based on Blockchain technology and are amalgamated in a manner facilitating the regulatory and legal certainty for both customers and businesses alike. The Prime Minister of Liechtenstein, Adrian Hasler, believes that these implementations in the Blockchain technology will make the country the first in the entire world making considerable changes in Blockchain for deep-rooted economic applications.
The Prime Minister has accepted the fact that a wide range of applications for Blockchain technology are available in the market hinting that it is not just for digital currencies like Bitcoin, but can be effectively used in various other applications.
With Blockchain technology, assets like cars, property, securities, or music licenses can be traded in the coming days and as per the prediction of Adrian Hasler, vast amounts of financial services and economic processes will be carried out through Blockchain trading. The success factor mainly relies on the support and assistance provided by the government targeting innovation for the future.
Having said that, digital currency trading or usage has yet to become a primary focus when it comes to payment methodologies. As per the FMA of Liechtenstein (Financial Market Authority), it has for now only published two books for ICOs and Cryptocurrencies. The Liechtenstein Principality, whose professed schemes for tax evasions and anonymous deposits make it a fantastic market for tax has become one of the leading destinations for Blockchain technology in Europe; however, Liechtenstein is still forecasted to play a major role in the fintech market as well.
In recent times, Frick, a credit bank from Liechtenstein notified the people that it is now providing cold storage and direct investments for five big Cryptocurrencies for its customers in the world.
Liechtenstein, which has one of the highest GDP in the European region is adopting blockchain technology models from Zug, Switzerland. Zug has established itself as a prestigious crypto valley targeting some of the biggest and leading fintech organizations to discover and establish its business in the region.
Future Of Blockchain Technology In Liechtenstein In recent times, the Liechtenstein government has provided significant hints about establishing and introducing new rules and legislations to formulate the DLT business models by the end of 2019. The plan is to empower and enhance the technology of blockchain and cryptocurrency in the region.
Due to this fact, a bill to revamp and restructure the DLT business model will be presented in the summer. The business model directed towards improving the overall structure and business model for Blockchain technology is not yet crafted to perfection as per the demands and requirements set by fintech business models, and only a sizeable amount of businesses are embracing the existing DL technology at present covered by different licensing requirements.
The new and improved legislation therefore will facilitate the regulatory and legal assurance for both the customers and businesses alike, making Liechtenstein one of the leading countries in the world that is formulating the groundwork for deep-rooted economic applications.
Reservations About Blockchain Technology In the Region
A lot of news is circulating in the market that many banking institutions in Malta have been quite hesitant regarding blockchain technology suggesting that it will damage relations in the banking sector in the coming months. However, many people believe that these predictions are nothing but a baseless rumor aimed at targeting the international banking market.
Blockchain has the capability of improving our lives for the better, and in my personal opinion, new and improved financial-based advancements and technologies are directed towards a shifting of risk towards the client.
Some of the regulatory programs in the European region as well as in the Liechtenstein market will focus on these existing problems formulating a solution aimed towards safeguarding the client. These programs will assist in developing trust in new business models for both the banking sector and its clients in the market.
According to the Prime Minister of Liechtenstein, blockchain technology will open new doors of development in the region and its desire towards modern technology is nothing but a positive sign. The PM is wary of the fact that the country needs to develop and provide more conditions and framework towards this technology.
Having said that, the most efficient pillar for regulation of DLT and blockchain technology relies on providing the clients with efficient regulatory confidence for businesses, ensuring that the protection of the client is upheld at considerate levels, the reliability in the financial market is preserved, and that integrity of the financial model is not a risk.
Adrian Hasler firmly believes in the notion that the country’s new legislation towards DLT will focus on these aspects for good.