Studying adoption of cryptocurrencies and blockchain technology in the Baltic States

Abstract

The paper aims to analyse adoption of cryptocurrencies and blockchain technology in the Baltic States in the context of regional competitiveness. To achieve the aim, the following tasks are set: 1) to investigate crypto activity and crypto regulation, 2) to analyse blockchain applications and policy actions beyond crypto space, 3) to investigate interconnections between blockchain adoption and regional competitiveness. The study employs methods of descriptive statistics and content analysis. The study concludes that Estonia’s leadership in the majority of regional competitiveness indicators correlates with its leading position in blockchain adoption not only in Baltic States, but also worldwide, specifically in the area of e-government. Lithuania shows an overall competitive position in blockchain adoption in fintech area. In contrast, Latvia significantly lags behind Estonia and Lithuania in terms of regional competitiveness and adoption of blockchain technology, which is weakened by the regulatory unclarity for virtual asset service providers and the lack of supportive actions from the government for blockchain innovation and its further adoption within and beyond crypto-space.