Which countries are planning legalisation of Bitcoins?

Highlights

• The Ukrainian Parliament passed the bill in a nearly unanimous vote to adopt a law that legalizes and regulated cryptocurrency in the country.
• El Salvador became the first country to adopt Bitcoin as an official legal currency.
• Countries such as Panama, Mexico, Venezuela, Brazil, Nicaragua, Argentina, and Malta are also following the path.

Ukraine became the fifth country to legalise bitcoin legal tender on 8 September, as the country attempt to make market transparent and prevent frauds. It is a sign that governments around the world are realising that cryptocurrencies are here to stay. The Ukrainian Parliament passed the bill in a nearly unanimous vote to adopt a law that legalises and regulates cryptocurrency in the country. The Bill now needs to be signed by President Volodymyr Zelensky.

Till now, cryptocurrencies were neither banned nor legal as there were no laws to protect the cryptocurrency transactions in Ukraine. On 7 September, El Salvador became the first country to adopt Bitcoin as an official legal currency, which has given confidence to other countries to adopt cryptocurrency.

Which countries are planning Legalization of Bitcoin?

The El Salvador government even promoted the cryptocurrency by offering US $30 in free Bitcoin to people who sign up for Chivo, its national digital wallet and the foreigners were granted residency, who invested three bitcoins worth US $140,000 in the country.

As Bitcoins are not issued and regulated by any central authority, many countries widely criticise cryptocurrencies for its volatility and for the exorbitant use of electricity to mine the coins.

Also read: Bitcoin As Legal Tender: El Salvador First Nation To Back Cryptocurrency

So here are the countries that are planning to legalize Bitcoins:

1. Panama

It is believed that Panama may follow El Salvador steps. The country has always punched well above its weight in respect of economy. If Panama follows the suit, the world really would sit up and take a note. The Panama’s government widely supports Bitcoin. Several political leaders were quick to respond to El Salvador’s legalisation of Bitcoin. Congressman Gabriel Silva also demanded that the Panama to follow its neighbour’s footsteps to become a true technology and entrepreneurship hub.

2. Mexico

The Mexican government is eager to expand its economy as much as possible and in past few years, legislation over cannabis legalisation has facilitated for wider talk about Bitcoin. In early 2020, there has been talks for proposals of the country’s cryptocurrency, but now the discussion has been shifted to Bitcoin just after El Salvador in 2021 started the process for adopting Bitcoin. The Mexican government is in talks to legalise the bitcoin tender and it should be just a matter of time.

Also read : Is Paraguay ready to legalize Bitcoin as a legal tender? Don’t get your hopes up just yet!

3. Venezuela

Venezuela is one of the wealthiest nations in the world and its gold and oil reserves would be the reason of envy to other nations but political corruption, unemployment, deterioration of productivity, economic mismanagement and high dependence on oil have contributed to the economic crisis. The financial world was curios when the country unveiled its own cryptocurrency in 2018. Venezuela’s fiat currency is hyper inflated although it made an effort with crypto. The country has form, infrastructure, and is interested to enter in Bitcoin which would offer a tried-and-tested cryptocurrency solution. 

4. Brazil

Brazil is often considered as innovative, with strong business community and its government widely supports its cryptocurrency and blockchain conferences and summits. Brazil has made it clear about its interest in the national cryptocurrency. However, the officials are said to be interested on the idea of being part of a Bitcoin conglomerate across South America.

5. Nicaragua

Several Nicaragua politicians have already spoken in the support of El Salvador. In fact, many analysts were expecting Managua to announce its intention to make Bitcoin legal tender. Now, as El Salvador has crossed the line, it could boost the confidence of Nicaragua to make a step forward to legalise Bitcoin. However, it needs to look out if the US impose sanction on El Salvador for making Bitcoin legal tender as it is believed that Bitcoin is a threat to the power of the US Dollar.

Also read: What Is the Crypto Fear and Greed Index?

6. Argentina

Argentina is a huge nation with admirable approach to technology, economics and education but, sadly it struggle time and time again to make all three sign in harmony.  In Argentina, cryptocurrency is popular among its major part of population and the government has been in discussions about Bitcoin. Its politicians are interested to adopt Bitcoin but the old guard and ways tend to rupture their excitement.

It is believed that a bill will be proposed in this year. Whether, it goes through or not in the hands of country’s political play.

7. Malta

Malta is the only country outside Central and South America with potential to make Bitcoin legal tender, as the government is positively welcoming tech companies with attractive tax breaks and benefits and it has been the European Vanguard of blockchain and cryptocurrency for few years. Malta has also been an open supporter of UK’s decision head for the Brexit door. A move in Malta is already going on to bring Bitcoin legal tender to the forefront of financial discussion over the next 12 months.