The revival of the Slovenian economy

Slovenians still remember the earth-shattering impact of the 2008 financial crisis. The country’s economy went from running on all cylinders to an unprecedented recession. When Valter, an entrepreneur from Ljubljana, recalls this period, his voice trembles. “It was terrible, because my company worked mainly for the local banks. Everything collapsed within a few weeks and our order book was suddenly empty. Since then, I have diversified activities and my small financial consulting business has been doing very well. The coronavirus has also caused a slowdown, but business has been picking up again in the last few days.” Not surprisingly, Valter is now doing business in the promising and speculative cryptocurrency sector. At the last Global Blockchain Summit in Ljubljana, more than 100 Slovenian companies confirmed that the government's ambition is becoming reality: their small state is becoming the champion of blockchain and cryptocurrency, putting it in a leading position in the digital world. This thirst for innovation has earned Slovenia the nickname "Switzerland of the Balkans".

The most spectacularly successful Slovenian startup is undoubtedly OriginTrail. Built in part on 20 million euros in foreign investment, the Ljubljana-based startup owes its success to a blockchain-based innovation that enables OriginTrail to offer its customers, both small and large companies, a fully secure data exchange solution. It also thrives thanks to a particularly flexible legal framework that makes Bitcoin and other cryptocurrencies not subject to capital gains tax and exchanges in digital currency completely free. This freedom is the result of political will, as Miro Cerar, Slovenian Minister of Foreign Affairs, confirms. “We recognize blockchain technology as an exceptional opportunity. In this respect, Slovenia is at the forefront and one of the most recognized blockchain destinations in Europe. For our export-oriented, small-scale economy, it is essential to encourage the development and application of business models that allow access to the international capital market.”

The other priority of the Slovenian Government is to promote sustainable development, and this is done by relying on a state-of-the-art circular economy. This explains the recent decision banning gasoline-powered cars, to go into effect in 2030. Another area in which Slovenia wants to be a leader at the European level is recycling. And the country is well on its way, considering that more than 60% of its waste is currently recycled, thanks in particular to the separation and collection of bio-waste. At the same time, information campaigns are in place to raise awareness among Slovenians. Valter is delighted. “The government has chosen the future by opting for new technologies and sustainable development,” he says. “The coronavirus crisis will affect the country's growth in 2020, but I believe that our economy will be back to normal before long."