Last year El Salvador made the headline in the news for accepting Bitcoin as a legalised currency in its country. The next country to follow in the same footsteps is the Central African Republic.
The present article is going to talk about the possibilities of many countries to also make Bitcoin and other currencies legal tender as well as all those countries that might get to the same rundown to make digital currencies an accepted form of currency. For more information you can visit http://www.bitcoin-profitapp.com.
What Does Legal Tender Mean?
Any currency that is acknowledged by the laws as well as accepted by the businesses is legal tender money. For instance, in the US the legally tendered money is Dollar but in many other nations currencies like Euro as well as the pound is also in usage. But it is seen that many countries after El Salvador are talking about making Bitcoin and other cryptocurrencies legal tender.
It is very likely that after the Central African Republic many other countries are also going to follow in the same footsteps. But before we discuss the countries that can come to a list-making cryptocurrencies legal tender, we will briefly distinguish between fiat currency like the dollar and Bitcoin.
How Bitcoin And Fiat Currencies Are Different?
One of the prime differences that make both digital currencies as well as fiat currencies different from each other is their regulation. As we know fiat currency is centrally regulated by the government of a country and on the contrary, the digital currency has no such centralised governance. Therefore, central banks and financial authorities would have very little control over how we spend our money if Bitcoin were to become legal tender everywhere overnight. However, there would be a price to pay for this liberty.
While Bitcoin can liberate users from using a currency that is frequently depreciated, it also gives them the option to use it anonymously to pay for unlawful products and services. This makes it unlikely that any government will wish to adopt Bitcoin as its only medium of exchange or legal money. Also, there is no such requirement on part of the countries to utilise bitcoin as a form of currency. Many countries just like El Salvador, utilise cryptocurrencies as well as fiat currency together.
Some Countries That Might Accept Bitcoin As Legal Tender
Panama
Panama is frequently mentioned as the nation most likely to declare Bitcoin legal money because its lawmakers filed regulations to do so the day following El Salvador's historic decision to also make bitcoin legal tender. Meanwhile, there is no leap taken on behalf of Panama to do so.
Ukraine
During the early phases of its conflict with Russia earlier this year, the Ukrainian government established a legislative framework for the cryptocurrency business. The law made it possible for cryptocurrency exchanges to function legally in Ukraine and for banks to set up business accounts for cryptocurrency firms.
Cuba
The Trump administration outlawed the remittance-sending of Cuban immigrants in 2020. Cubans required a method to accept money transfers from friends and relatives who were employed overseas without having to go through American banks.
And cryptocurrency proved to be the ideal remedy. Hence Cuba is also in the rundown of making cryptocurrency legal tender.
Conclusion
With the emerging popularity of cryptocurrency, many countries are accepting them as a legal form of money. It is being presumed that many countries are going to follow in the footsteps of El Salvador and the Central African Republic in accepting cryptocurrencies legally. Hence a rundown of all those probable countries has been given in this article as well.
