The Republic of Maldives, a South Asian country, has partnered with MBS Global Investment, a Dubai-based family office, to build a blockchain and crypto hub in the country. This move aims to attract more investors into the country’s financial ecosystem.
According to the Financial Times, the project would cost about $8.8 billion, exceeding the Maldives’ $7 billion annual Gross Domestic Product (GDP) by over 25%.
Maldivian Govt Welcomes Blockchain Technology
Remarkably, the project will have a physical office in Malé, the capital and most populous city of the Maldives, and will feature many investment benefits for indigenous and international investors. The Maldives International Financial Centre (IFC) will allow companies to retain more profits without paying corporate taxes.
Investors can also pass on their holdings to future heirs without incurring inheritance tax. Moreover, the Maldives constitution offers ownership rights, making it a safe space for investment.
As revealed in the project’s master plan, the IFC will serve as a “financial free zone for blockchain and digital assets globally.” Its mission would be to triple the Maldives’ GDP within four years and generate over $1 billion in revenue by the fifth year.
Commenting on the project, MBS’s chief executive, Nadeem Hussain, noted that the project could be funded through equity and debt, and it has secured preliminary funding commitments ranging from $4 billion to $5 billion. He added,
“We appreciated right from the offset what was involved in terms of funding, and we’ve made the necessary alliances and brought in the necessary partners to ensure we have that. It is a large sum of money.”
Remarkably, the commitment between the Maldives Government and MBS Global Investment to establish the Maldives International Financial Center displays confidence in crypto and blockchain technology. In a way, the country is taking a unique step into the ecosystem.
National Crypto Adoption Soars
In 2021, El Salvador set the pace for national and republican crypto adoption. Since then, it has continued to boost its stash of bitcoin (BTC), the world’s top crypto asset. It recently embarked on a daily 1 BTC purchase streak and holds over 6,000 bitcoins.
The country’s success has impacted other political leaders who have made moves to welcome crypto under their administration. Foremost is U.S. President Donald Trump, who has promised to make America the world’s capital of bitcoin and crypto.
Meanwhile, the entire crypto market is valued at approximately $3 trillion, with BTC trading at $94,500 per coin.
