Crypto-friendliness: understanding blockchain public policy

Abstract

Purpose The purpose of this paper is to conceptualise the chief aspects of policy interest in blockchain technology. Design/methodology/approach The paper outlines policymaking processes in the context of innovation and technological change, assesses generic variations in policy treatment towards blockchain, and identifies manifestations of policy entrepreneurship using national case studies of blockchain policies. Findings Favourable policy dispositions towards blockchain technology are interpreted as political efforts to develop local, blockchain-enabled economies. So-called “crypto-friendly” jurisdictions proactively clarify regulatory and tax treatments of cryptocurrency and other blockchain applications, and trial blockchain uses in fields predominated by public sector activity. Policymakers in countries hostile towards blockchain-related activity have instigated bans or strict limitations with respect to blockchain engagement by developers and users. Research limitations/implications Reliance upon case studies suggests the need for alternative study approaches (e.g. index construction, empirical research) as blockchain use consolidates throughout the global economy. Practical implications This paper provides insight to policymakers and blockchain practitioners regarding the attributes of accommodative policies towards distributed ledger technology. Social implications Countries and sub-national regions exhibiting a more welcoming policy stance are more likely to attract entrepreneurs and investors in the crypto-economic blockchain space. Originality/value This paper develops a policy “crypto-friendliness” construct to assess the extent to which policymakers enact accommodative policies for blockchain development.

A Cross-National Comparative Policy Analysis of the Blockchain Technology Between the USA and China

“…Novak's research found beneficial policy inclination regarding blockchain technology is expounded as political efforts to evolve local, blockchain-enabled economies [58]. Policy makers in countries/regions that oppose blockchain-related activity have imposed prohibitions or strict restrictions on developers and users participating in blockchain activities.…”

“…Mei and Liu [5] introduced the technical principles of blockchain, discussed its industry situations and existing problems, and proposed related policy suggestions for government, industry, and academic institutions. Novak [34] [37] pointed out that the effective supervision of financial blockchain technology is a issue which has to be resolved earnestly and propose risk prevention and regulatory policy recommendations. Truby [38] explored the regulatory, legal and policy related to blockchain technology and digital currencies for sustainable environmental development.…”

New Horizons in Business and Management Studies

“…The conditions of the external environment affect the adoption of BT and the entry and success of the BT-enabled firms. Countries that exhibit a more welcoming policy stance are more likely to attract entrepreneurs and investors in the cryptoeconomic blockchain space (Novak, 2019). Allen (2019) also suggests that the BT policy within early-stage entrepreneurship should focus on how existing policies inhibit the process of an emergent entrepreneurial organisation.…”

A Cross-National Comparative Policy Analysis of the Blockchain Technology between the USA and China

“…Mei and Liu introduced the technical principles of blockchain, discussed its industry applications and existing problems and proposed related policy suggestions for government, industry and academic institutions [5]. Novak built a blockchain "crypto-friendliness" model which can evaluate policy accommodation [30].…”