Governments and Banks: Trust in the Digital Economy

Governments and banks: how to build trust in the digital economy

Overview

How is trust built in the digital economy? In this MERGE Madrid panel, Madrid City Council, the City of Buenos Aires, Tower Bank (Panama) and the web3 sector debate the role of regulation, banks entering crypto, city-level incentives and the use cases that build trust among citizens, businesses and users.

What you'll learn

• What trust means: for banks, regulators, cities and web3
• Regulation and adoption: how MiCA opens the door to banks
• Compliance by design: the experience of a bank that adapts
• Crypto city: tax incentives and paying taxes in Buenos Aires
• Community and talent: Madrid's bet on the blockchain ecosystem
• Use cases: blockchain for subsidies, traceability and green bonds

Session summary

What trust is: the web3 sector explains that regulation builds user trust (versus the previous “wild west”) and encourages banks to offer crypto services.

The bank that adapts: Tower Bank (Panama) describes how banking, historically focused on trust and protecting the system, now adopts fintech technologies with “compliance by design” (for example, opening accounts in minutes) and working transparently with regulators.

Buenos Aires, crypto city: the City of Buenos Aires presents three levers to build trust: tax relief and registration of crypto activity, promotion before regulation, and paying local taxes in crypto, alongside a merchant training program (with Binance) to drive mass adoption.

Madrid and community: Madrid City Council stresses that trust is built by communities and talent; it mentions blockchain awards endowed with half a million euros for eight projects (according to the talk) and the option to pay taxes with Bizum.

Use cases and the intersection of worlds: it cites blockchain examples for distributing subsidies (Netherlands) and for green bonds and CO2 traceability in Spain, and how MiCA, ETPs (such as Valour's) and new licenses bring the worlds of exchanges (CASPs) and banking closer, giving users more options.

Watch the full talk

Watch the full recording on MERGE's YouTube channel, with Madrid City Council, the City of Buenos Aires, Tower Bank and the web3 sector on trust in the digital economy.

FAQs

How is trust built in the digital economy?
According to the panel, with regulation, public-private collaboration, reputable players and real use cases.

Why are banks entering crypto now?
According to the talk, because regulation (such as MiCA) gives them legal certainty to offer crypto services to their clients.

What does Buenos Aires do as a “crypto city”?
According to the talk, it registers the activity, offers tax incentives, allows paying local taxes in crypto and trains merchants.

Is this investment advice?
No. This content is informational and summarizes what was presented in the panel; it does not constitute investment or legal advice. Consult a professional for your specific situation.