The government of Argentina is teaming up with cryptocurrency exchange Binance to co-invest in a series of blockchain projects, in the latest example of a national government adopting pro-blockchain policies.
According to a Cointelegraph report, the government will team up on projects instigated by Binance Labs, the firm’s innovation arm, as well as those being pioneered by regional exchange LatamEx. The news comes following the decision from Binance to choose Buenos Aires as its Latin American hub ahead of the next round of development through its Binance Labs program.
The agreement between Binance and the government will see the state providing matching funding of up to $50,000 for blockchain projects, with scope for up to 10 blockchain projects to be funded per year over a four-year period.
The country’s blockchain accelerator, Founders Lab, will oversee the investment, alongside the development teams at Binance and LatamEx respectively.
The move is designed to encourage blockchain development, providing essential support for the fledgling crypto sector in Buenos Aires and beyond.
Buenos Aires was chosen as one of the six international locations for Binance Labs’ investment, ahead of the next phase of the programme, set to commence later this month. It is joined by Berlin, Lagos, San Francisco, Hong Kong and Singapore, which will each run their own legs of the investment programme.
The news is the latest example of a national government introducing measures supportive of cryptocurrency and blockchain development.
While most have chosen to work on the legislative side to develop laws that give blockchain startups favorable conditions for growth, the funding from the government in Argentina is an example of the more proactive measures governments can take to develop their blockchain industries.
Argentina has been notably proactive around cryptocurrencies in recent months. In February, a chemicals export deal with Paraguay was settled for cryptocurrency, while the country’s public transport card has recently started accepting crypto deposits.
With the latest measures designed to support investment in innovative blockchain companies, the government looks to be taking further steps towards creating a positive environment for its blockchain sector.
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