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Despite numerous technology giants showing interest in blockchain technology, most governments are still wary of the technology. However, the Dutch seem to be leading the way when it comes to federal support to innovation in this sector.

The Dutch Are Setting an Example in Blockchain Adoption

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With most governments still cautious about laying their hands on distributed ledgers, any country that openly backs blockchain or cryptocurrency based project is going to attract a lot of media attention.

That’s the case of the Netherlands, which is now on its way of becoming a leader in tech innovations in Europe. The country has dived into the world of blockchain head first and is providing federal support to this sector like no other government ever has.

The Dutch government has directly backed blockchain pilot projects and pushed for new prototypes, project implementation, and international partnerships. The country’s push for blockchain didn’t go unnoticed, as the projects have attracted partners that include the World Bank, the United Nations, and the EU Forum.

Back in May 2018, the Ministry of Economic Affairs and Climate Policy created a special blockchain unit with a research agenda mainly focused on blockchain. The unit aimed to establish whether the trustless nature of blockchain is reliable, determining if blockchain is sustainable from the perspective of energy consumption, and discovering the best ways in which blockchain endeavors can be managed and governed.

“The Netherlands hosts one of the most passionate blockchain scenes in the world,”

Emanuele Francioni, Tech Lead of Dusk Foundation, told Forbes. He said that the non-profit, which is working on a blockchain-based secure communication system, has seen an increase in homegrown projects in the Netherlands.

Dutch Ventures Also Making Strides When It Comes to Crypto Exchanges

As crypto trading is becoming more and more popular, most exchanges are faced with the problem of keeping the fees low while complying with increasingly tough government regulation. The Netherlands have realized that crypto trading is becoming one of the industry’s most emerging markets, with its government actively tailoring its regulatory framework to fit the burgeoning industry.

John Jansen, the founder of Dutch cryptocurrency exchange Deribit, told Forbes that “crypto is catching on with the Dutch people” mostly thanks to the country’s positive attitude toward this technological development.

“It was recently reported that in October of 2017, an estimated 135,000 Dutch people had invested in cryptocurrencies,” he said. “But by February of this year, that number rose to 580,000… that’s 430% growth in five months. We have every reason to expect that number to continue to rise.”

“It’s amazing that the Dutch government created a special blockchain unit with the goal of not just regulating the new technology but actively looking for opportunities,” Jansen added.