The world of cryptocurrency was rattled when El Salvador announced the legalization of cryptocurrency back in 2021. It became the first country to ever recognize Bitcoin, the most dominant cryptocurrency in the world, as legal tender, allowing the populace to use Bitcoin as a means of payment. Following El Salvador’s decision, a few countries also replicated their move as well.
The utilities of cryptocurrencies are not limited to mere economic hedges, but it also plays a role in today’s entertainment and daily livelihood. In fashion industries, food enterprises, and more, cryptocurrency exists and is used by several markets. Even the iGaming community has leaned towards the asset class. This has led to the launch of several online casinos that accept cryptocurrency as a form of legitimate payment. Gambling is not legal in many parts of the world while many would like to have anonymity when they play online games so the benefits of crypto are used to their full value here.
Below are the three main countries that have embraced cryptocurrency where anyone can use the asset class for several accessories.
El Salvador:
The pioneer state that recognized Bitcoin, El Salvador is the country that prides itself as the first nation to fully embrace cryptocurrency. The country passed the Bitcoin law that officially permitted the use of cryptocurrency as a means of payment, making it obligatory in all types of businesses.
The cryptocurrency paved the way for Salvadorans to reduce remittance fees whenever they sent or received funds from abroad. It also provided the unbanked populace with access to financial services in the country at a lower cost, allowing them to gain services at a reduced price. Perhaps the main reason for Bitcoin’s legalization was to bypass the global financial service where investments and services are aimed toward richer countries and individuals.
Central African Republic:
The Central African Republic is the second nation behind El Salvador which has officially adopted Bitcoin as a legal tender alongside the nation’s own local fiat currency. A unanimous vote in CAR’s parliament passed a bill that fully legalized the usage of Bitcoin and several other cryptocurrencies as a means for payment, alongside the CFA franc, the regional currency.
A major driving force behind the region’s move was to solve the currency and exchange rate issues the nation faces. Citizens in the region can protect their earnings from a failing economy by using crypto as it is not affected by the inflation rate. Additionally, cross-border payment is not only easier with crypto but also cheaper and faster, which the locals can make use of in the poor economy.
Cuba:
Cuba’s muddled economic conditions worsened due to sanctions last year, preventing remittances to and from the country and depriving the locals of making a living. To counteract this issue, Cubans used cryptocurrencies to send or receive remittance funds from families abroad. Some Cubans have left their low-paying jobs to fully dedicate themselves to trading.
While cryptocurrency is not officially by law used as a legal tender, locals can use Bitcoin with the right requirements such as licenses. Nonetheless, Cubans continue to use cryptocurrencies locally as well for necessities and utilities. Cross-border payments, protecting savings against inflation and local consumerism, Cubans have truly used crypto to its fullest.
Conclusion:
It is evident that most countries use cryptocurrencies to bypass the financial difficulties in national currency. More nations have considered adopting cryptocurrency in the future, but it remains to be seen whether crypto will be recognized as a legal payment method around the world.