Madeira Intends to Boost Economy With Startups and an Innovative Payment System.
Madeira is a picturesque archipelago in the middle of the Atlantic and intends to boost its economic growth with startups and emerging technologies. This move has attracted Web3 entrepreneurs as they are flocking to this region.
Portugal’s picturesque Madeira archipelago has been praised for its natural beauty. Still, the government has been promoted to explore emerging technologies, such as blockchain, because of an ageing population and a pressing need for a more diversified economy.
Overview
According to reports, the region’s free trade zone offers attractive tax incentives, including a competitive maximum corporate tax rate of 5%, which makes it an appealing destination for startups and emerging tech companies that make up 30% of businesses in Madeira. The region has one of the lowest corporate tax rates in the European Union and capital gains tax exemption for eligible firms.
Experts at the Bitcoin Apex official site mentioned that the Financial Secretary of the Regional Government of Madeira, Rogerion Gouveia, said, “For companies aiming to establish a presence in the region, the foremost tax incentive is found in the Madeira free zone or the International Business Center. This area offers a preferential tax regime, capping the corporate tax rate at a competitive maximum of 5%.” Gouveia added, “It’s important to note that this is not an offshore haven. This regime operates within a structured set of regulations and undergoes rigorous audits by both national tax authorities and the European Commission”.
Blockchain Innovation in Madeira
Yacooba Labs, a software development company, is one of the companies behind Madeira’s Web3 ecosystem focused on developing intuitive products and innovative services to make interacting with Web3 easier for everyone. The company is leveraging blockchain technology for ticketing solutions to address issues such as overpriced secondary markets and ticket fraud. Additionally, Madeira’s tax incentives are associated with other initiatives to shift the region’s focus from tourism to exploring blockchain for a payment network that will simplify currency exchange for tourists and streamline government operations, demonstrating the region’s commitment to technological innovation.
About Yacooba Labs
Yacooba Labs is a startup specialising in decentralised systems, creating products and services that enable real-world institutions to access the power of new digital and virtual solutions brought by blockchain technologies. The company’s mission is to make blockchain and decentralised systems simple and accessible for every business or entity by exploring their potential and merging them with traditional business models.
Shifting Focus from Tourism to Technology
With an emphasis on information technology education in local schools, Madeira is actively transitioning its economy from tourism to technology-based. This is a sharp contrast to the 50% illiterate population of the island during the 1970s. Madeira’s efforts to attract startups and tech talent and initiatives to leverage blockchain for innovative solutions reflect its dedication to fostering a thriving tech ecosystem. According to reports, Madeira is working on a payment network connecting local merchants and simplifying currency exchange for tourists.
While in its feasibility study stage, the network will likely use blockchain technology to enable tourists to load and use one debit card across the archipelago for all services and products. The same card system will streamline government operations, including paying social benefits, like residents and scholarships. The Financial Secretary said, “We want to see if this model is feasible. We are using Madeira as a laboratory for such a model, similar to how the region has been used in the past to test other technologies”. Gouveia added, “Over the decades, the archipelago has also served to validate other technologies in Portugal, such as 4G and cable television”.
Madeira’s Crypto Timeline
On April 8 2022, Madeira and Prospera, a jurisdiction on Honduras Roatán Island, announced the adoption of Bitcoin (BTC) as an official payment method inside its borders, where residents from these two territories won’t pay capital gains tax when buying or selling BTC. Miguel Albuquerque, president of the Regional Government of Madeira, said, “Residents won’t need to pay capital gains when trading Bitcoin”. Albuquerque added, “I believe in the future, and I believe in Bitcoin. Our government will continue to work to create a fantastic environment for Bitcoin in Madeira”. The Latter’s President, Joel Bomgar, said, “The authorities will enable other municipalities in Honduras or other companies or political subdivisions outside the United States to float Bitcoin bonds from within the Prospera jurisdiction”.
Between November 30 and December 1 2023, Madeira held its second edition of the Blockchain conference at the Cultural & Research of Funchal (CCIF), showcasing the region’s efforts to become an emerging technology hub in the Atlantic. The Madeira Blockchain 2023 conference focused on Web3 companies from all over the globe that are shaping tomorrow’s business models and technologies. The conference’s main topics included blockchain news and its advantages on the current markets and strategies for personal development in blockchain sectors.