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Countries in which bitcoin (BTC) is a legal ## country where Bitcoin (BTC) is legal

countries where Bitcoin (BTC) is legal

What does the use of bitcoin mean as a legal payment means? ## if citizens cannot prove that they do not have access to the necessary technology, they can use bitcoin as a form of payment if BTC is considered as a legal payment tool in their jurisdiction. Central banks and regulatory bodies of the country usually decide that it is a legal payment tool in their economy. This means that any form of value that they consider to be legal payment can be used to pay for goods in stores. For example, in the United States, banknotes of $ 10 and $ 50 banknotes are a legitimate payment. If you make bitcoin (BTC) with a legal payment tool, this means that when someone wants to pay for a cup of coffee, it can use BTC to pay. If the Central Bank does not declare Bitcoin a legal payment means, the risk of accepting BTC for sold goods will lie on store owners. If the Central Bank unequivocally announced Bitcoin by a legal payment means, then it becomes an official form of exchange of values ​​in the economy. The growth of bitcoin and some other decentralized cryptocurrencies also served as a catalyst for a number of central banks, which began to consider digital currencies as a more reliable alternative to fiat currencies. As a result, many countries, including China, the UK, the USA and India, are working on the creation of digital currencies of central banks (CBDC). These countries use digital currencies in order to better track and control each monetary unit in the economy. Such trackability will help them to more accurately calculate taxes and identify money launders, but, more importantly, to discover any accumulation of wealth and develop a policy aimed at maintaining it in the economy.

What factors usually stimulate the Bitcoin country as a legal payment fund?

, as a rule, there are macroeconomic factors that the country seeks to regulate by accepting currency as a legal payment fund. In order to make bitcoin a legal payment means, these factors must coincide with a visionary leadership. Despite this, central banks take part in digital currencies. There are countries with more fundamental problems that the digital version of the fiat currency may not solve. For example, countries such as Argentina and Venezuela have been suffering from hyperinflation for many years, and the form of currency, the value of which is determined not only by their own economy, will not interfere with them. There are also countries such as Salvador, Panama, Guatemala and Honduras, where a large percentage of GDP is formed at the expense of money transfers. This opens the way for this form of exchange of values ​​that is not limited by national boundaries. For example, 24.07% of Salvador GDP in 2020 was received at the expense of money transfers. Another factor taken into account by countries is the degree of financial availability in their economy. Although the client’s path to cryptocurrencies is by no means convenient for the user, it should be noted that hyperlock experiments on creating an ecosystem of bitcoin in countries such as Salvador were crowned with certain success. Since money transfers make a great contribution to the economy, digital currencies can not only contribute to financial integration, but also provide savings on commission for money transfers. It should also be noted that the regimes that introduce Bitcoin as a legal payment fund claim that they provide financial integration for their population. However, financial coverage should often precede the penetration of mobile communications and the Internet. Without digital infrastructure, the digital currency in itself will not be able to solve the problem of financial availability. So, what countries did Bitcoin accept as a legal payment fund and how did they do it? Salvador is the first country to accept Bitcoin as a legal payment fund. In addition to the macroeconomic factors described above, the country had a leader who was ready to experiment with bitcoin. Since then, he has been the right alphabet ambassador. The second country, which adopted Bitcoin as a legal payment fund, is the Central African Republic (TsAB). The TsAS is rich in natural resources, such as gold and diamonds, and has an economy of 2.3 billion dollars. Nevertheless, the level of financial availability is quite low, and they rely on money transfers. In addition to the adoption of Bitcoin, the country also announced that 20% of its treasury would occupy Sango Coin (SANGO), a digital currency that will reflect the state of natural resources in the country.

What intends to reach the country, taking BTC as a legal payment means?# ## countries rely on an effective monetary policy as a key lever for managing their economy. Therefore, they need a reliable currency and the ability to maneuver politics around this currency during the crisis. Both Salvador and CAC OPThey filled that they want to make money transfers to the country cheaper. President of Salvadora Nayb Bookie predicts saving $ 400 million in money transfers when the country switches to Bitcoin's infrastructure. When using the Bitcoin Lightning network, payments can be cheaper than existing methods. From a macroeconomic point of view, the currency of these countries, as a rule, hardly hold their value in relation to the US dollar. Salvador switched to using the US dollar as his currency, but soon realized that most of its exports falls on the United States and the weakening of the dollar is more harmful than the benefits of its inhabitants. Unlike other Latin America countries, Salvador did not have very high inflation before he accepted the dollar. It should be added to this that they did not have any control over monetary policy against the US dollar, which is controlled by a centralized organization in another country. Therefore, the country was counting on BTC to solve its key problems associated with money transfers, and at the same time do not depend on the fluctuations in the US dollar.

What are the problems associated with the adoption of Bitcoin as a legal payment means?

# There are risks of liquidity And the regulatory risks associated with the cryptocurrency market, which the country assumes when it uses it as a legal payment fund. Since the cryptocurrency market greatly correlates with the American stock markets, changes in the policy of the federal reserve system will affect cryptocurrency prices. The reason most of these countries accept bitcoin is to reduce the cost of money transfers for the population that does not have bank accounts. This can be a superficial cause, since in most of these countries there is a very low level of penetration of digital technologies and mobile communications. Therefore, if they cannot install bitcoin banking materials throughout the country, they will be impractical to use BTC as a default currency. Another problem is the unstable nature of the cryptocurrency market. When in November 2021 the BTC course fell by more than 70% of his historical maximum, Salvador made several purchases of this cryptocurrency. However, the fall in Bitcoin prices was inexorable, and most of these positions are currently restrained. If the country's treasury uses the money of citizens in a volatile asset, which may lose 70-80% of its value in six months, it cannot be known for its reasonable economic policy. Due to weak monetary positions, the country's ability to occupy more in international markets also suffers greatly. On the other hand, the regulation of bitcoin is largely determined by national regulators. Due to the decentralized nature of cryptocurrency, the BTC ban in one national jurisdiction does not have a direct influence on its legal status in another jurisdiction. Nevertheless, when such a country as the United States tightly regulates cryptocurrencies, the market reacts to this. As a result, the price action may affect all countries that use bitcoin as a legal payment fund or reserve currency.

What countries are prohibited by bitcoin and other cryptocurrencies? ## The ban on such global technology and economic paradigm as BTC is not the best approach to governments to protect their citizens from the risks of this class of assets. It is possible to ensure the safety of retail customers only by accompanying them along this path, training and establishing proper control. There were several BTC prohibitions in the world, other cryptocurrencies and cryptocurrency mining. China banned cryptocurrencies in 2021 due to the digital currency of its central bank, and this also affected Bitcoin mining. As a result, the BTC hashrate in 2021 fell. However, the industry was lifted to the feet due to an increase in the number of Bitcoin miners in the United States. In 2022, India took a tough position in relation to cryptocurrencies. If you believe in stories, every time in one part of the world, an asset ban is introduced on this class, the other region uses this opportunity. Therefore, until there is a consistent ban on cryptocurrencies around the world, it will be extremely difficult to restrain the growth of BTC and digital assets. Similar: cryptocurrency bill: countries where cryptocurrencies are prohibited or illegal Countries seeking to ban cryptocurrencies to protect their citizens, which are retail investors, most likely will not achieve success. A more joint and democratic approach will help them achieve their goal - to protect retail investors.

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8/14/2022