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Crypto-friendliness: understanding blockchain public policy

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  • Mikayla Novak

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.

Suggested Citation

  • Mikayla Novak, 2019. "Crypto-friendliness: understanding blockchain public policy," Journal of Entrepreneurship and Public Policy, Emerald Group Publishing Limited, vol. 9(2), pages 165-184, September.
    • Handle: RePEc:eme:jepppp:jepp-03-2019-0014
    DOI: 10.1108/JEPP-03-2019-0014
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    Cited by:

    1. Saleem Malik & Mehmood Chadhar & Savanid Vatanasakdakul & Madhu Chetty, 2021. "Factors Affecting the Organizational Adoption of Blockchain Technology: Extending the Technology–Organization–Environment (TOE) Framework in the Australian Context," Sustainability, MDPI, vol. 13(16), pages 1-33, August.
    2. Christian Hackober & Carolin Bock, 2021. "Which investors’ characteristics are beneficial for initial coin offerings? Evidence from blockchain technology-based firms," Journal of Business Economics, Springer, vol. 91(8), pages 1085-1124, October.
    3. Alastair Berg & Chris Berg & Mikayla Novak, 2020. "Blockchains and constitutional catallaxy," Constitutional Political Economy, Springer, vol. 31(2), pages 188-204, June.
    4. Chu-Chi Kuo & Joseph Z. Shyu, 2021. "A Cross-National Comparative Policy Analysis of the Blockchain Technology between the USA and China," Sustainability, MDPI, vol. 13(12), pages 1-18, June.
    5. Allen, Darcy W.E. & Berg, Chris & Markey-Towler, Brendan & Novak, Mikayla & Potts, Jason, 2020. "Blockchain and the evolution of institutional technologies: Implications for innovation policy," Research Policy, Elsevier, vol. 49(1).
    6. Silvia Semenzin & David Rozas & Samer Hassan, 2022. "Blockchain-based application at a governmental level: disruption or illusion? The case of Estonia [A systematic analysis of applications of blockchain in healthcare]," Policy and Society, Darryl S. Jarvis and M. Ramesh, vol. 41(3), pages 386-401.
    7. Kyungmoo Heo & Sangyoon Yi, 2023. "(De)centralization in the governance of blockchain systems: cryptocurrency cases," Journal of Organization Design, Springer;Organizational Design Community, vol. 12(3), pages 59-82, September.

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