Slovenia is situated at the heart of the European Union’s former Yugoslavian republics. However, Slovenia has been forced to cope with the economic crisis that started in 2008 by improved taxation and budget discipline. Visit Immediate Edge software for more information on bitcoin trading.
In 2013, Slovenia reached an agreement with its EU partners for a support package worth 2.3 billion euros to help it emerge from the crisis. The government has not yet taken action against digital currencies, but they plan to regulate them soon, probably influencing bitcoin price and its economy.
7 Ways That Bitcoin Can Help The Economy Of Slovenia
The impact of tourism on the Slovenian economy is already considerable. But how can bitcoin help?
A solution would be to use bitcoin in restaurants, bars, and shops for tourists to pay in their preferred currency, i.e., in bitcoin or any other cryptocurrency, without being charged high commissions by credit card companies which would bring more revenue to the local economy.
2. The logistics industry
According to a report published in 2012, Slovenia is among the top logistics locations in Europe, and it has an advanced infrastructure – a well-developed road network – for example, 57% of goods transported within the country are moved by road.
This makes transport very affordable and competitive compared with other countries.
To solve the problem of food security with an ageing farming population, Slovenia needs to attract foreign workers.
To do this, they need to make the agricultural industry more attractive by making it more profitable.
Bitcoin can help by making international trading easier and increasing profits by cutting out the middleman (which is essentially the case with Agro-explorer)
4. Home industry Slovenians
Home industry Slovenians are known for their creativity in furniture, interior decoration, and fashion.
These industries would greatly benefit from accepting BTC because it would attract customers from all over the world and facilitate the work of designers, helping Slovenia remain competitive.
5. Banking and other financial institutions
There are no specific plans for bitcoin in Slovenia, but banks have shown interest in this currency. In addition, in 2013, BTC was included in Standard & Poor’s rating system, which has led to more trust from investors.
In February 2014, BTC-e partnered with one of the largest Slovenian banks, enabling customers to exchange bitcoin and litecoin directly into US dollars.
6. Disability payments
A small percentage of the Slovenian population deals with disabilities which may prevent them from working.
To help these people secure their future, Slovenia has introduced a state allowance for those who cannot work. But the criteria to qualify are stringent, and not all can benefit from it.
In an age where blockchain technology reduces financial transaction costs, accepting cryptocurrency as a means of payment could help improve this system.
7. Crowdfunding projects
Even though Slovenia has seen its most tremendous crowdfunding success in music festivals, it has not yet embraced the idea of crowdfunding for startups and SMEs.
There are several platforms in Slovenia, but they are not very well known or trusted, limiting their influence on the local economy. However, some projects have seen significant success due to international investors interested in Slovenian startups.
Some Negatives of bitcoin that impacted the economy of Slovenia
1. VAT imposed on bitcoin transactions
As it happens in other countries, tax authorities want their share of cryptocurrency profits.
So if you buy BTC and then pay for goods or services, the value-added tax (VAT) that applies will also be paid in fiat.
Unfortunately, at this time, there is no IRS-like authority enforcing VAT on cryptocurrencies in Slovenia.
In May 2017, BTC-e – one of the largest bitcoin exchanges website – was hacked, and its customer database was released. Payment details were then gathered and sent to Interpol for investigation.
This has led to several companies increasing their security measures and not accepting bitcoin as a safe payment method, causing the market share of Slovenia-based BTC-e to decrease.
Slovenia has seen significant forward movement with blockchain technology and cryptocurrencies. Its central bank is looking into how it can benefit the economy, but its small size has limitations if it wants to integrate bitcoin as a mainstream currency.