Economy

Digital technology, a driver of Growth

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 has been voted 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, Monaco Telecom, 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 Monaco Tech, Monaco’s business incubator.
• Attracting innovative and ethical companies through new funding methods such as Security Token Offering.

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 eco-nomic fabric made up of locally established companies and startups, investment funds, R&D entities and gov-ernment 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 STOs (Security Token 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.

End 2019, a law has been voted to legislate 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.