5 countries that could be next in line to adopt Bitcoin as legal tender
Currently, El Salvador and the Central African Republic (CAR) are the only two countries in the world where Bitcoin functions as a legal currency. However, speculation is rife that many others are likely to follow suit.
Bitcoin or cryptocurrencies are one of the most talked about topics in the last decade. Ever since the emergence of blockchain technology, the traditional global financial market has witnessed a revolution. Armed with the power to decentralize, cryptocurrencies have emerged as the future of finance.
Since 2017, when the first Bitcoin boom occurred, countries and institutions around the world have been taking notes. Back in May 2021, President Nayib Bukele of El Salvador, a small Latin American country, declared that they are adopting BTC as legal tender. Eventually, El Salvador became the first country in the world to adopt BTC as legal tender.
On April 27, the Central African Republic (CAR) adopted BTC as legal tender as well. Despite being rich in natural resources, CAR has remained one of the poorest countries in the world. President Faustin-Archange Touadera expressed his belief that adopting BTC as a legal tender will bring prosperity to the country in the future. Some experts also believe that this decision could help the country reduce its dependence on the US dollar and create sustainability for the struggling nation.
In addition, a special economic zone on a specific tourist-centric island in Honduras last year also adopted BTC as legal tender.
As of now, El Salvador and the Central African Republic (CAR) are the only two countries in the world where Bitcoin functions as a legal currency. However, speculation is rife that it is more likely that many others will follow suit.
Accept BTC as legal tender
The central banks and regulatory authorities of a country or nation determine what can be used as legal tender under their jurisdiction. For example, a $5 or a $10 bill can be used to purchase goods in the United States since these bills are considered legal tender in the United States.
Similarly, adopting Bitcoin as a legal tender means that the citizens of the country can pay for all goods through Bitcoins, in the same way that they use fiat currencies. Without approval from central banks, anyone accepting BTC to sell goods in a country could be putting themselves at risk. BTC can only become a form of value exchange when it receives explicit support and approval from central banks.
Digital currencies like Bitcoin and other cryptocurrencies make it easy to track each and every unit of currency used, reduce money laundering and calculate their taxes in a more organized way.
Therefore, countries like UK, USA, China and India are busy creating pilot projects regarding Central Bank Digital Currency (CBDC). These countries have obviously found some credible uses for cryptocurrencies instead of fiat currencies.
5 countries likely to adopt Bitcoin as legal tender
Saint Kitts and Nevis
On November 12, 2022, while speaking at the Bitcoin Cash 2022 conference, Terrance Drew, the Prime Minister of the Caribbean nation of Saint Kitts and Nevis, said that the country may adopt Bitcoin Cash (BCH) the following year.
As a member of the Eastern Caribbean Central Bank and part of their CBDC program DCash, Drew said their nation was a forward-looking nation that encouraged exploring modern technologies for the future of its people.
Paraguay
Shortly after El Salvador declared BTC as their legal tender, Carlitos Rejala, a member of Paraguay’s Chamber of Deputies, proposed a bill to accept BTC as legal tender in the county.
Next year he is willing to run for president, and part of his campaign will be dedicated to this issue. As a result, it is possible to see Paraguay as a BTC-friendly country.
Ukraine
Just a couple of years back, Ukraine created its own Ministry of Digital Transformation, and they have announced that the country aims to become one of the leading authorities on crypto.
As the war between Russia and Ukraine rages, we have seen how people around the world have donated millions through crypto payments as wartime aid for food and basic supplies. Vitalik Buterin, co-founder of Ethereum, himself donated 5 million dollars to the country during the war. Although highly unlikely right now, in the middle of the war, there is a strong possibility that Ukraine will soon adopt crypto as legal tender.
Venezuela
The chances of Venezuela adopting crypto as a legal tender are relatively high since Venezuelans have been using crypto for a long time, not as a hedge, but to pay for their daily needs. Some experts also believe that crypto could usher in an era of economic freedom that will ultimately lead to the end of socialism in Venezuela.
USA and Russia
The two countries mentioned in the list of countries most likely to adopt BTC, according to CoinMarketCap, are the United States and Russia.
The position for the US and Russia to take a step towards BTC adoption right now is unlikely. The state of regulation in the US is cumbersome, while Russia is at war with Ukraine. As the crypto winter continues, we may have to wait to hear about developments from these two giants of crypto adoption.
