The status of being counted as legal money has become valid for cryptocurrencies, albeit to a limited extent. However, although the majority of countries still do not legally accept Bitcoin, on the other hand, two countries have accepted BTC as legal currency.
Bitcoin is an increasingly popular digital currency around the world. Launched in 2009, this cryptocurrency has experienced a significant rise especially in recent years and is preferred by many investors. However, many countries are still skeptical of Bitcoin and other cryptocurrencies and do not accept them as legal currency.
The number of countries in the world that accept Bitcoin as legal currency is quite limited. El Salvador takes the first place among these countries. El Salvador became the first country to adopt Bitcoin as its legal currency in 2021. Accordingly, the use of Bitcoin was made available for payments and all businesses in the country had to accept Bitcoin.
In South American countries Paraguay, Argentina and Uruguay, the use of Bitcoin and other cryptocurrencies has been made legal. Also, among European countries, Switzerland, Luxembourg and Malta legally accept Bitcoin.
However, in the world, Bitcoin and other cryptocurrencies are still mostly considered illegal. Especially large countries such as China and Russia are among those that tend to limit the use of cryptocurrencies. Also, Bitcoin and other cryptocurrencies face regulatory uncertainties.
El Salvador Became the First Country
El Salvador became the first country to recognize Bitcoin as a legal currency in 2021. This decision was an initiative aimed at contributing to the economic development of the country and offering a solution for citizens experiencing restrictions on access to the financial system.
The decision took effect on September 7, 2021, after it was approved by the country’s parliament. Accordingly, Bitcoin began to be accepted as a legal means of payment alongside the US Dollar and could be used in any transaction.
El Salvador’s adoption of Bitcoin as a legal currency had a huge impact, especially in the Bitcoin community, and set an example for other countries to take similar steps. However, the implementation of the decision has sparked controversy, with some arguing that it could hurt the country’s economy.
The government of El Salvador has taken some steps to popularize the use of Bitcoin and make it easier to transact. These include measures such as installing Bitcoin ATMs, taxing Bitcoin, creating its own Bitcoin wallet for the government, and using renewable energy to mine Bitcoin.
Green Light from Central African Republic to BTC
The Central African Republic, which legally recognizes Bitcoin, gave information about its new projects in this regard last year. The plans were published on the government’s official Facebook page. The post included a link that took people to a landing page on sango.org. After signing up for the waitlist, users were linked to a 24-page online presentation with more details about the project.
According to the presentation, the Sango Project plans to create “the first legal crypto hub recognized by a country’s parliament.” Plans also include establishing a Digital Nation Bank, facilitating land purchases with Bitcoin, and developing a crypto wallet.
Which Country Will Accept Bitcoin as Legal Currency?
The next country to accept Bitcoin as a legal currency was a matter of curiosity. In particular, as awareness of digital currencies and blockchain technology increases, many countries may aim to modernize and make their financial systems more competitive by making regulations for these technologies.
CoinMarketCap has published a statistics on this subject according to user surveys. Accordingly, Paraguay, Venezuela and Anguilla are potentially in the top 3, while Turkey ranks 12th. In other words, Turkey ranks 12th among 244 countries that are likely to accept Bitcoin as a legal currency.
