Inaugurating a new cycle of economic prosperity

Digital technology, a driver of growth

Although Monaco has been able to maxi- mize its economic potential in relation to its size, this is now clearly a limiting factor for its growth. By liberating Monaco from its territorial constraints for the first time, digital technology is an opportunity to embark on a new development cycle and to take a more prominent seat in the forum of global cities.

5G in 2019

During 2019, the 5G mobile network, deployed for the first time throughout a national territory, will be an extraordinary driver of new uses, economic develop- ment and attractiveness. It will multiply download speeds by 10, thus shortening connection times by the same factor. Simultaneous processing will be 10 times faster and will facilitate the unlimited use of connected objects.

The Principality is basing its goal of digital-driven economic growth on three major actions:

Giving Monégasque companies a framework that is conducive to capturing all the potential of digital technology

  • By equipping itself with large digital infrastructures such as 5G and fiber throughout its entire territory.
  • By guaranteeing security and sovereignty.
  • By adapting Monaco’s legislative framework to facilitate the development of digital technology. Three laws in particular will be enacted during 2019, enshrining the blockchain, digital identity and digitization concepts.
  • By adopting a Strategic State approach, with for example the Monaco Government initiating and driving digital technology-based economic growth initiatives, or attracting digital and indus- trial partners.

Boosting and perpetuating its current economic model

  • By contributing to the Principality’s event strategy, for example by increasing the impact of key events such as the Grand Prix or the Yacht Show.
  • By encouraging companies that enjoy a monopoly (SBM,SMEG,MonacoTelecom, CAM, etc.) to develop new services via digital technology.

Creating new, highly targeted growth drivers for the digital sector in the Principality

  • By focusing on the technologies of the future in tandem with leading sectors in Monaco (Real Estate, Wealth Management, Luxury,Yachting, Sport, Business Tourism) via the creation of financing structures or the setting up of dedicated startups through MonacoTech,Monaco’s business incubator.
  • Attracting innovative and ethical com- panies through new funding methods such as Initial Coin Offerings.

Guaranteeing security
and sovereignty

As a mark of Monégasque excellence, security is a top priority – the same is naturally true of digital security. The Principality also has its own Cyber Security Agency (Agence Monégasque de Sécurité Numérique – AMSN) which applies the best global standards in this matter. For both security and sovereignty reasons, regarding the applica­tion of Monaco’s legislative framework on stored data, the Principality is set to announce the launch by the end of the year of a Sovereign Cloud solu­tion for use by the Government and Operators of Vital Impor­tance (OVI), an infrastructure that will also be of benefit to companies based in Monaco. Also with the adoption of the highest corporate security standards in mind, Monaco’s Sovereign Cloud will have a digital “twin” in the form of an “e­Embassy” in Luxembourg.

Towards a progressive digital ecosystem in Monaco

With a clear view of its strengths and position- ing, Monaco is developing a focused strategy to connect digital players and financing in highly promising areas, in line with its values of progress and responsibility.

Monaco’s aim is to become a Funding Nation for progress, a global market where progress is developed and financed.

The Clean Tech field will be the first to benefit, with the launch of a dedicated investment fund during 2019.

In a given area, in addition to its investment capacity, Monaco offers an economic fabric made up of locally established companies and startups, investment funds, R&D entities and government services for leading digital giants and international startups. The Principality will thus be a “showcase” for business incubation and preview demonstrations of innovative projects.

Funding game-changing projects

With the development of blockchain technologies, financing projects through ICOs (Initial Coin Offerings) is becoming increasingly popular worldwide. Monaco is looking to encourage this method of financing innovation while protecting investors and supporting a crucial and important issue for the Principality: protecting the environment.

Before the summer of 2019, a bill will be tabled to legislate for these practices: issuances of tokens on a blockchain will require a mandatory label issued by the Minister of State. The criteria for obtaining this label include: the incorporation and establishment of a company in Monaco, disclosure of shareholders’ details, description of the token, the governance of its use over time, and investor protection guarantees.

And in the future?

Monaco has set its sights on becoming the world leader of environmental ICOs, and is making this ambition a reality in 2019 with its first ICO to fund the production of the new documentary by Luc Jacquet, Oscar-winning director of March of the Penguins.