Blockchain Technology: A National Priority for Governments Worldwide
As governments struggle to modernize their financial infrastructure, blockchain is evolving from a private sector experiment to a national priority. From stablecoins to digital identity systems, countries in Asia, Africa, and the Middle East are rapidly adopting tokenized assets – driven in part by fears that regulatory changes in the US could leave them behind.
At the heart of this push is Sign, led by co-founder and CEO Xin Yan. In an interview with crypto.news, he explains what’s driving this wave of adoption, from cost reductions to greater transparency and taking back control of money flows. 
Driving Forces Behind Blockchain Adoption
The U.S. shift in cryptocurrencies has led to major changes among global regulators. Stablecoins have now become a geopolitical weapon for the USA, and when governments get involved, crypto adoption is much more likely. According to Xin Yan, “There are around 190 governments in the world and most of them think in bureaucratic terms. They do not always fully understand new technologies, but they care about national development and do not want their countries to be left behind.”
Xin Yan highlights that blockchain offers real practical benefits, including faster and more efficient global settlement systems, better payments, and more transparency. Compared to traditional options such as SWIFT, blockchain-based settlement is cleaner, faster, and increasingly compliant as digital ID systems and automated KYC improve.
USD Stablecoins and National Sovereignty
USD stablecoins currently dominate the global crypto economy, and governments fear this will lead to deepening dollarization and a weakening of their own currencies. Xin Yan notes that “The traditional US dollar payment system is already losing efficiency, but now there is a new, even more powerful ‘weapon’: US dollar-based stablecoins. This is a real threat to smaller nations.” Currency control is one of the few levers of national sovereignty, and many countries are responding strategically by launching their own stablecoins, pegged to their local currencies.
Sign is working with countries like Kyrgyzstan and Sierra Leone to launch national stablecoins, allowing them to monitor data flow and maintain control over domestic traffic. Xin Yan emphasizes that “The best defense is to adapt the technology: launch your own stablecoin, peg it to your local currency, and create liquidity pairs with exchanges like Binance.”
Blockchain Infrastructure and Tokenization
Beyond stablecoins, governments are building or interested in building blockchain infrastructure, including monetary systems, cross-border payment transactions, and digital identity systems. Xin Yan explains that “The most important layer is the monetary system itself. Governments view blockchain as a superior settlement network – especially between central banks and commercial banks.” Combining stablecoins with blockchain-based settlements creates the next-generation global payments architecture.
Xin Yan also highlights the importance of digital identity, noting that “For monetary systems to work, you need reliable KYC and credential verification.” Sign is developing a new approach to digital ID systems, using verifiable references instead of centralized databases, for countries like the United Arab Emirates, Bhutan, Singapore, and Hong Kong.
Scalability and Public Services
Some are concerned about scalability, but Xin Yan notes that “Modern chains like BNB Chain and Solana process blocks in less than 200 milliseconds. This is more than enough for a country’s transaction volume.” Blockchain is also changing the way governments interact with citizens, enabling direct distribution of funds, such as grants or child benefits, on-chain.
Xin Yan emphasizes that “Once you have national digital IDs and wallets, the government can distribute funds directly on-chain. Instead of having to deal with multiple bank accounts and intermediaries, citizens can simply request an airdrop in conjunction with their verified ID.”
Implications for the Crypto Ecosystem
The adoption of blockchain infrastructure by governments will bring real people and real money into the crypto economy. Xin Yan notes that “When people start receiving pensions or salaries through wallets, they automatically become part of the crypto world. Once this happens, crypto will no longer be niche but will be integrated into daily life, voting, payments, and services.”
Xin Yan also highlights that tokenization will explode, with countries like Abu Dhabi tokenizing even 5% of their oil, becoming one of the largest assets in the crypto market overnight. The real value will finally be in on-chain liquidity again.
For more information, read the full interview with Xin Yan on crypto.news.
