Countries where Bitcoin (BTC) is legal
2.
Generally, there are macroeconomic factors that a country seeks to manage by adopting a currency as legal tender. In order for Bitcoin to be legal tender, these factors must coincide with visionary leadership.
Despite this, central banks are getting into digital currencies. There are countries with more fundamental problems that a simple digital version of fiat currency may not solve. For example, countries like Argentina and Venezuela have suffered from hyperinflation for years and can make do with a form of currency that derives its value from far beyond their own economies. There are also countries like El Salvador, Panama, Guatemala and Honduras, where a large percentage of GDP comes from remittances. This paves the way for a form of value exchange that is not limited by national borders. For example, 24.07% of El Salvador's GDP in 2020 came from remittances.
Another consideration for countries is the extent of financial inclusion in their economies. While the customer journey around cryptocurrencies is by no means user-friendly, it must be said that hyperlocal experiments in building an ecosystem on bitcoin in countries like El Salvador have seen some success. With remittances contributing significantly to the economy, digital currencies can not only help financial inclusion but also save money on remittance fees.
It should also be noted that the regimes that deploy Bitcoin as legal tender have claimed to bring financial inclusion to its population. Yet financial inclusion must often be preceded by mobile phone and internet penetration. Without the digital infrastructure, a digital currency alone will not be able to solve the problem of financial inclusion.
So which countries adopted bitcoin as legal tender and how did they do it? El Salvador is the first country to adopt Bitcoin as legal tender. Apart from the macroeconomic factors described above, the country had a leader who was willing to experiment with bitcoin. He has been a loyal cryptocurrency ambassador ever since.
The second country to adopt Bitcoin as legal tender is the Central African Republic (CAR). The CAR is rich in natural resources like gold and diamonds and has a $2.3 billion economy. Yet financial inclusion is quite low and they depend on remittances. In addition to adopting Bitcoin, the country also revealed that 20% of its treasury will hold Sango Coin (SANGO), a digital currency that will reflect the health of the country's natural resources.
2.
Generally, there are macroeconomic factors that a country seeks to manage by adopting a currency as legal tender. In order for Bitcoin to be legal tender, these factors must coincide with visionary leadership.
Despite this, central banks are getting into digital currencies. There are countries with more fundamental problems that a simple digital version of fiat currency may not solve. For example, countries like Argentina and Venezuela have suffered from hyperinflation for years and can make do with a form of currency that derives its value from far beyond their own economies. There are also countries like El Salvador, Panama, Guatemala and Honduras, where a large percentage of GDP comes from remittances. This paves the way for a form of value exchange that is not limited by national borders. For example, 24.07% of El Salvador's GDP in 2020 came from remittances.
Another consideration for countries is the extent of financial inclusion in their economies. While the customer journey around cryptocurrencies is by no means user-friendly, it must be said that hyperlocal experiments in building an ecosystem on bitcoin in countries like El Salvador have seen some success. With remittances contributing significantly to the economy, digital currencies can not only help financial inclusion but also save money on remittance fees.
It should also be noted that the regimes that deploy Bitcoin as legal tender have claimed to bring financial inclusion to its population. Yet financial inclusion must often be preceded by mobile phone and internet penetration. Without the digital infrastructure, a digital currency alone will not be able to solve the problem of financial inclusion.
So which countries adopted bitcoin as legal tender and how did they do it? El Salvador is the first country to adopt Bitcoin as legal tender. Apart from the macroeconomic factors described above, the country had a leader who was willing to experiment with bitcoin. He has been a loyal cryptocurrency ambassador ever since.
The second country to adopt Bitcoin as legal tender is the Central African Republic (CAR). The CAR is rich in natural resources like gold and diamonds and has a $2.3 billion economy. Yet financial inclusion is quite low and they depend on remittances. In addition to adopting Bitcoin, the country also revealed that 20% of its treasury will hold Sango Coin (SANGO), a digital currency that will reflect the health of the country's natural resources.
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