Maldives Plans $9 Billion Blockchain Hub To Lure Crypto Investors
Highlights
- Maldives is inching toward a $9 billion Web 3 hub to diversify its economy.
- The government is lining up a string of perks to attract international service providers.
- Maldives will face direct competition from Singapore and Hong Kong for Web 3 dominance.
The Maldives wants to diversify its local economy from tourism in a full embrace of blockchain and cryptocurrencies. The government has inked a deal with Dubai-based MBA Global Services to build a $9 billion blockchain hub to attract crypto investors.
Maldives Eyes Mega Blockchain Hub To Diversify Local Economy
According to a Financial Times report, the Maldives has signed an agreement with MBA Global Services to establish a crypto and blockchain hub. Per the report, the hub will be the Maldives’ biggest statement of intent in the quest to diversify its local economy beyond tourism and fisheries.
This time, the Maldives is eyeing an avalanche of foreign direct investment into its fledgling cryptocurrency and Web 3 industry. Dubbed the Maldives International Financial Center, the ambitious blockchain hub will cost the Southeast Asian country a staggering $9 billion.
The Dubai-based MBA Global Services is providing as much as $8.8 billion for the hub, tapping its network of high-net-worth individuals and wealth management firms to fund the project.
For context, the Maldives has a GDP of less than $7 billion, making the proposed Web 3 hub a mega project for the country. According to the plans, the hub will sit on an 830,000-square-foot facility in the capital city of Male and will employ nearly 17,000 individuals.
The hub will mirror Dubai’s transformation from tourism to digital assets over the last four years. Dubai appears to have completed its Web 3 transformation, with Eric Trump confirming cryptocurrency payments in Trump Towers Dubai.
A String Of Benefits For Cryptocurrency Investors
The ambitious project is expected to be completed within five years, with authorities eyeing a raft of incentives for investors. For starters, the hub will operate as a “financial freezone for blockchain and digital assets” to lure investors.
While details are sparse, initial chatter around the Maldives’ blockchain hub suggests 100% ownership for foreign firms and a special regulatory tax. A seamless registration and licensing process with the provision of banking services is tipped to sweeten the deal for cryptocurrency firms keen on setting up shop in the country.
Can The Maldives Compete With Other Regional Heavyweights?
As cryptocurrency investors face tax uncertainty in the US and other regions, crypto investors will flock to the Maldives. The Maldives is aiming to triple its GDP within four years via blockchain investment, but will face stiff competition from other regional heavyweights.
Hong Kong and Singapore hold a clear lead in Web 3 in the region, with Thailand keen on closing the gap following KuCoin’s expansion into the country.
Apart from diversifying its local economy, the Maldives has its eyes on using the revenue stream from the hub to offset its national debt.
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