In Which Countries Is Cryptocurrency Legal?
In the Bitcoin legal countries list, there are currently only two countries where the cryptocurrency is legal tender: El Salvador and the Central African Republic.
El Salvador made Bitcoin legal tender in 2021. However, many central banks and other financial institutions criticized El Salvador for that move. El Salvador’s president Nayib Bukele has since repeatedly bought the dip. He even put laser eyes on his Twitter profile picture and tweeted BTFD several times. But El Salvador has not made a profit on its crypto purchases as of 2022. Other countries need to think of the pros and cons of making crypto legal tender.
Even though there are several countries with a central bank digital currency (CBDC) as its official currency, few try to make Bitcoin legal tender. For a long time, there was discussion which country will make crypto legal tender next. Then, the Central African Republic stepped up and made Bitcoin legal tender. The country passed a law, although many of its citizens do not have an internet connection. Some commentators remarked that the move was only a publicity stunt.
But some people also argue there are good reasons to make Bitcoin legal. Countries list many reasons against it. In fact, we should ask ourselves: how could Bitcoin become legal tender?
How To Make Bitcoin Legal Tender
One way is to pass a law letting Bitcoin coexist with a country’s fiat currency. That is what El Salvador and the Central African Republic did.
Another way would be to introduce a digital dollar and Bitcoin simultaneously. But that could be problematic because people may have to calculate in sats or satoshis, the lowest denomination of Bitcoin, representing 0.00000001 BTC, for everyday purchases.
For now, BTC is too volatile to become a currency in many countries. But we could see countries adopt a stablecoin or introduce a peg to a cryptocurrency. Until that happens, many people will only use crypto during a crisis.
