A beautiful archipelago located in the middle of the Atlantic Ocean is actively seeking startups and tech talents to drive its economic growth. The region is attracting Web3 entrepreneurs who are eager to be a part of its burgeoning tech ecosystem.
Portugal’s Madeira archipelago, known for its stunning natural beauty, is facing challenges posed by an aging population and a need for a more diverse economy. In response, the local government has turned to emerging technologies, including blockchain, to drive economic development.
Rogerio Gouveia, the finance secretary of the regional government of Madeira, revealed that nearly 30% of businesses in Madeira’s free trade zone are now emerging-technology companies. This special economic area provides attractive tax benefits, including one of the lowest corporate tax rates in the European Union and capital gains tax exemption for eligible firms.
One company contributing to Madeira’s Web3 ecosystem is Yacooba Labs, a software development company focused on using blockchain technology for ticketing solutions, addressing issues such as overpriced secondary markets and ticket fraud.
Furthermore, Madeira’s tax incentives are just one aspect of the region’s broader initiatives to transition from a tourism-based economy to one driven by technology. This includes an emphasis on information technology education in local schools, a stark contrast to the island’s high illiteracy rate in the 1970s.
Additionally, Madeira is actively developing a payment network to simplify currency exchange for tourists and connect local merchants. The network is expected to leverage blockchain technology to enable tourists to use a single debit card across the archipelago for all purchases, as well as streamline government operations, including the disbursement of social benefits to residents.
“We want to test the feasibility of this model, using Madeira as a laboratory, similar to how the region has previously validated other technologies like 4G and cable television,” Gouveia explained.
Cointelegraph provided coverage of the second edition of the Madeira Blockchain 2023, which brought together Web3 companies from around the world to explore the future of business models and technologies.
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