Exciting times ahead for Portugal’s crypto scene

Portugal’s general elections on March 10, 2024, are not just about politics; they’re pivotal for the country’s blockchain and digital assets industry. As voting kicks off, the crypto-friendly status Portugal has enjoyed since 2016 hangs in the balance.

In 2022, former Prime Minister Antonio Costa’s majority win marked a historic moment, but corruption and scandals led to resignations, triggering new elections. The latest Consulmark2 poll paints a tight race, with the center-right Democratic Alliance (AD) barely leading against the Socialist Party (PS) and the rising right-wing party Chega making waves.

Portugal’s crypto-friendly reputation might face shifts based on the incoming government’s policies. The unique tax regime that turned Portugal into a global crypto hub could be at stake. The political parties present their crypto stances, with Chega leading as the most crypto-friendly, aiming to solidify Portugal’s position as a global crypto hub.

Chega plans to invest in tech education, introducing blockchain courses in schools, and exploring blockchain’s potential for administrative improvements. AD also supports coding in education but is silent on blockchain.

Socialist PS, already fostering crypto-friendly policies, wants to resume its Web3 national strategy. However, smaller parties like Left Block (BE) propose taxing all crypto gains and mandatory reporting, potentially challenging PS’s crypto-friendly regime.

The New Economy Institute warns that an alliance with BE and CDU might push PS to abandon its crypto-friendly stance. The outcome rests on whether BE can exert enough influence to sway PS.

For the Portuguese crypto community, continuity in legislation is crucial. A change, especially if BE enters the government, may impact the community negatively. Influencers like Sebastian Montgomery fear increased tax rates, potentially prompting some to leave. The crypto industry’s mobility could see talent and businesses relocating to more favorable countries.

Portugal’s Web3 ecosystem, boasting over 650 companies, faces a critical juncture. Despite having attractive crypto-friendly laws, Portugal ranks 58th worldwide for crypto adoption. The potential shift in policies could hinder the industry’s growth.

Henrique Corrêa da Silva, president of the New Economy Institute, sees Portugal’s unique chance to create generational wealth through crypto adoption. Drawing parallels with Portugal’s golden age, he envisions the country becoming a major international player in the digital world.

In these elections, Portugal doesn’t just decide its political fate but also the future of its digital assets hub. Stay tuned as Portugal stands on the brink of a transformative moment!