Bitcoin Cash legal in Saint Kitts and Nevis?

Saint Kitts and Nevis, an island nation in Central America, is considering making Bitcoin Cash legal by March 2023.

The good news comes from the Bitcoin Cash 2022 conference held on November 12 and 13, where Terrance Drew, Prime Minister of the Central American island state of St. Kitts and Nevis, revealed a positive intention towards Bitcoin.

It seems that the country is following a process of integrating cryptocurrencies into the economy and is studying this operation, just as part of this process.

Drew admits: Bitcoin Cash as legal tender could be the turning point

In the speech delivered by Drew, the Prime Minister’s intentions are clear:

“I welcome the opportunity for further dialogue to explore the possibilities of mining Bitcoin Cash and making it legal tender in St. Kitts and Nevis by March 2023, when safeguards are in place for our country and people.”

Apparently, according to Drew, his country is increasingly realizing the potential benefits of adopting cryptos like Bitcoin as legal tender.

In fact, many businesses on the island already accept Bitcoin Cash as a form of payment.

Logically speaking, this is a complex and time-consuming operation that can only be started after considering all aspects of such a venture and following all necessary due diligence best practices.

But the intention is there, and for Bitcoin, the most prestigious and highly valued crypto, the news bodes well. Since cryptocurrencies have always and by many been viewed with hostility and mistrust.

Nevertheless, Bitcoin in particular has never given up, and while letting those who doubted its potential speak for themselves, it has gradually built a veritable empire.

However, if the country went ahead with its project, it would follow in the footsteps of other states that have already moved in this direction, such as El Salvador. Which declared Bitcoin a legal tender in June 2021.

Bitcoin: the first to adopt it as legal tender is El Salvador

On September 7, 2021, the Central American state of El Salvador officially became the first country in the world to adopt Bitcoin Cash as legal tender. On that occasion, President Nayib Bukele formally stated his aims, saying:

“The goal is to increase economic development and allow citizens to save on the $400 million in commissions paid in money transfers from the United States and other countries.”

Specifically, the law institutionalizing cryptocurrency was passed in June 2021 with 62 of the 84 available votes in the Legislative Assembly, the Salvadoran Parliament.

The move, hailed as “historic” by Bukele, requires merchants and businesses to accept the queen of cryptocurrencies as a means of payment, in a state of equivalence with the other official currency of the country (the US dollar).

On September 6, 2021, the director announced the purchase of the first 400 bitcoins and then worked to install 200 counters in the country to allow conversion between the two currencies and withdraw bitcoins at no additional cost.

In addition, there was also a kind of national campaign to get closer to the instrument: the equivalent of thirty dollars in bitcoin as a gift to everyone who uses the digital wallet accessible through an app called Chivo.

Advantages and criticisms of Bitcoin Cash as a legal tender

The countless advantages of adopting Bitcoin Cash as a legal tender are numerous and were already stated by Bukele when he did so in El Salvador. But as with any major innovation, there has also been no shortage of criticism from skeptics.

Let’s try to get an accurate picture of the situation. As a legal tender currency, Bitcoin Cash offers fee savings and is certainly an important business transaction.

In addition, innovation leads to greater economic inclusion, potentially solving the unbanked problem, more investment, tourism, innovation and economic development for countries, especially considering savings on remittance flows.

In fact, the use of Bitcoin Cash can greatly reduce the fee burden and make it cheaper to send money, with a positive leverage effect for the national economy.

As already expected, even in the face of these advantages, there has been no shortage of criticism. Many are still scared and disagree with the decision first taken by El Salvador and now probably by St. Kitts and Nevis.

This is because they see Bitcoin as too volatile a currency and fear the transparency and environmental risks of mining in Central American countries. In addition, critics fear that the effect of Bitcoin as legal currency is to fuel money laundering.

Meanwhile, some analysts warn about the damage to the reputation of “Government Bitcoin” in the eyes of foreign investors.