How Major Cities Worldwide are Embracing Web3 ⚡

Hey everyone!

After a week of reuniting and hosting friends we haven’t seen in a while, we’ve been reflecting on how much community matters to us. And we’re fortunate for the community we’ve started to create in Web3. Whether it’s through our own research, conferences, or work, we’ve met some amazing builders and investors all over the world. But when we think about whether this community will gather in-person next, there’s a lot of places to choose from! So get your passport ready - today we’re going to explore a few major cities that have really started to grow in crypto!

Streets are saying Lisbon is the new Silicon Valley.

When Kendall had the opportunity to visit the city last month, she visited The Fintech House which is a home base and convening grounds for blockchain start-ups such as  Zharta, Relayz, Blockgreen, and Proprhome. This may come as a surprise, but there’s been a lot of talk that Lisbon may become the Silicon Valley of Web3. Why are people saying this? Well here are three reasons people are drawn to build in this beautiful city:

1. Tax rates are low: Portugal has a business-friendly environment with a low corporate tax rate and a streamlined process for starting a business. This makes it easier and more cost-effective to start a web3 venture in Lisbon.

2. It’s a gateway to the rest of Europe and Africa: Lisbon is located on the western edge of Europe, making it an ideal location for startups that want to tap into both the European and African markets. With its strategic location, Lisbon can serve as a gateway to these markets.

3. The government is optimistic about blockchain: The Portuguese government is known for being blockchain-friendly and has implemented policies to promote blockchain technology. This makes it easier for web3 ventures to operate and grow in Lisbon.

In addition to these reasons, Lisbon has hosted the Non Fungible Conference (NFC) every year, so if anyone wants to make the trip this June, hit us up! For those who call Lisbon home, there is also the LisbonDAO which is a collective of entrepreneurs, expats and free thinkers who are passionate about leveraging blockchain technology to benefit the city. Needless to say, it’s on and poppin’ in Lisbon.

L’optimisme pour le crypto est vivant et bien à Paris!

(Chad’s translation: Optimism for crypto is alive and well in Paris). Coming off the heels of Paris Blockchain Week (not the week you thought we’d say, huh?), people are starting to ask if Paris is the next hub for crypto, not just in Europe, but in the world. Reporters at this French blockchain event spoke highly about the cautiously optimistic theme and mindset attendees and speaker shared. So why would is everyone so excited about Paris? Pour plusieurs raisons (Chad’s translation: for many reasons):

1. Prominent companies: while Paris may not come to mind immediately as a place for crypto, it’s already home to 50 digital asset companies, including highly-respected companies like Ledger and The Sandbox

2. The US environment: with crypto companies like FTX and Binance being hit with multi-million dollar fines for their business practices, some companies are wondering if it’s only a matter of time until their name is called. And others are thinking of an escape plan. For example, Circle chose France to be its European headquarters, a region that’s dreaming of a Euro-dominated stable coin.

3. Business incentives: looks like it’s more than croissants that Parisians are using to capture this crypto audience -  labor-market reforms, tax cuts and a larger post-Brexit continental banking sector… Paris sounds like a good spot to do business 

4. Collaboration: With all the events that also take place in Paris, like Fashion Week, there’s prime opportunities to sync up. Even at Paris Blockchain Week, we saw companies like  LVMH and Givenchy talking to gaming developers, like Animoca Brands. 

Hong Kong makes the call to welcome Web3 startups back into the city.

Hong Kong has had a complicated relationship with cryptocurrency, having been home to several startups before China's ban in 2021. However, the city is now welcoming crypto businesses again, with more regulatory clarity. Hong Kong intends to legalize crypto retail trading and introduce a licensing regime for digital asset providers. We’ve been preaching the gospel about the need for regulation in this space for a while now, so it’s great to see a country finally taking some action on this. Companies are already responding, with expressions of interest from over 80 virtual asset-related companies, and KuCoin opening an office in the city. Although some question Hong Kong's suitability for building web3 organizations, most people believe that crypto-trading-related firms will be the first to benefit from the policy change. 

“Can we make an NFT of the Big Apple?” - Overheard in NYC, definitely, probably, maybe?

Where in the world would you be able to easily gather over 5,000 people, host great parties and speakers, but not get in the way of anyone’s commute to work? None other than New York City! The conference, NFT.NYC, has grown tenfold since the first one was held in 2019. And later this week, the “Super Bowl of NFTs” is set to be an even bigger and better conference as well (and maybe you’ll see us out and about!).

But even though NYC attracts people from around the world, it’s unclear whether this is the future great city for crypto. On one hand, you have a major, like Eric Adams, who just before receiving his first paycheck after being elected in January 2022, stated that his salary would be converted to Bitcoin and Ethereum. But at the same time, NY was the first state to issue state-level crypto ban. Their ban was focused on reducing the large amount of energy consumed by crypto-mining companies using Proof of Work authentication (click here for your refresher newsletter), by stopping the issuance and renewal of air permits to fossil fuel plants that support them.

A whole new world for crypto

Communities comes in all shapes and sizes. And no matter where you are in the world, they are innovating, even Web3 communities in a bear market. For us, we’re so fortunate for the community we’ve been building with W3FTC, and with that being said, we wanted to recognize one of its original members: a dedicated reader who never misses a chance to be the first one to like our articles, the one and only, Nancy Rankin (Kendall’s mom)! Thanks so much for joining us on this journey!

Until next week!

– Chad & Kendall