From port economy to international finance hub: the overseas territory which is leading the way. Gibraltar is a British Overseas Territory located on the Southernmost tip of the Iberian Peninsula, which juts into the entrance of the Mediterranean Sea. There are 14 British Overseas Territories, including Bermuda and Falkland Islands, which are the two most well-known alongside Gibraltar. The official currency is the Gibraltar Pound, which is pegged to the Pound Sterling. UK notes and coins are also accepted in Gibraltar. Most shops also accept Euros but this not Gibraltar’s official currency.
Gibraltar’s history of trading
In the mid-18th century, the port of Gibraltar became a naval station for the Royal Navy. Therefore, Britain having the port secured, turned their main focus to exploiting the port’s economic assets. After this, the port allowed the distribution of goods to all over Europe making it the best efficient way to import and export to Europe and the Mediterranean Sea. As a result of being one of the busiest ports in the world this created opportunities. As the centre of the international trade market, the port of Gibraltar had large amount of currency transaction during this trading.
However, in 1982, Gibraltar’s economy suffered heavily after the closure of the dockyard. It was marked by a rapid rise in smuggling. A Gibraltarian trade unionist, Mr Bossano described the closure of the Gibraltar dockyard as, “a watershed for Gibraltar in its economic history.” For this reason, the Gibraltar government had to diversify the economy and promote new industries. This coincided with the rise of e-commerce and internet usage which was when the emerging of online gaming was occurring.
Crypto currency
Gibraltar also became a hot spot destination for crypto currency. Gibraltar is well known as a low taxation environment. It does not impose capital gains or dividend tax on cryptocurrencies, and crypto exchanges are rated as a business. This comprises of a very friendly 10 per cent corporate income tax rate, making crypto currency a highly attractive niche for Gibraltar. It recently hosted the first international post-pandemic crypto event on October 8, 2021 where 300 […]
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