7 Countries That Recognize Bitcoin as Their Legal Currency (and Why)?
There are many reasons why investments in cryptocurrencies arouse HUGE emotions.
Let’s answer the question: who doesn’t want to exchange money faster and easier?
Majority trading platforms combined with amazing technology have made digital currencies an affordable way for many people to invest their capital.
Two different persons can make cryptocurrency transactions from the furthest corners of the world without being charged additional fees.
Moreover, transactions don’t require information from a private bank account. And also, don't hold your personal data, which keeps your transactions more private and secured.
Of course, we are talking about Bitcoin (BTC), which has become the leading cryptocurrency in a digital world.
With all the enthusiasm that often appears around cryptocurrencies, one major question comes to mind... are cryptocurrencies legal?
The answer to this fundamental question is ambiguous... Much depends on regions of the world and their regulations.
If you want to know, in which countries Bitcoin is legal (and why). Let’s find it out it the next paragraphs of this article.
Which Countries Recognize Bitcoin as Their Legal Currency (and Why)?
1. El Salvador
El Salvador, as of June 2021, is the first country to adopt Bitcoin as a legal tender accepted throughout the country.
This means that you can, for example, go to the nearest McDonald's and pay for your favorite burger with Bitcoins.
This is what Bitcoin Magazine journalist Aaron van Wirdum decided to check.
Aaron expected a negative reaction, but the restaurant staff did not make a fuss about it.
Residents of El Salvador prefer to pay via Bitcoin because most of them are unable to secure their own bank accounts.
2. United States
Most of the world's transactions are made in dollars.
The U.S. currency is commonly used by consumers as well as business owners around the world.
Bitcoin in the United States is legal. People there can make purchases and investments in this popular cryptocurrency.
In the US, there are companies that welcome payments via Bitcoin, e.g., Microsoft, Subway, or Twitch.
Bitcoin is legal in Canada but is not recognized as legal tender.
Canada's tax agency has classified cryptocurrencies as assets. Because of this, using them to pay for products or services should be treated as a barter transaction.
Transactions with digital money are subject to Canada's tax laws, including the Income Tax Act.
Some companies in Canada have already been properly instructed to accept payments using Bitcoin.
What's interesting is that Canada has a turnover of about $65 MILLION in Bitcoins!
Most Bitcoin transactions in Asia take place in Japan.
Over the past few years, the Japanese government has increased the presence of cryptocurrencies in the national economy.
Since 2017, BTC has been recognized as an official tender in Japan.
Some innovative companies have started paying part of their employees' vague in Bitcoins (wow ?).
Another important step to popularizing digital currencies was to exempt cryptocurrencies from Japan's "JCT" consumption tax.
Thailand is one of the most technologically open countries that allows legal trading of cryptocurrencies.
Thailand's Securities and Exchange Commission in 2018 recognized Bitcoin (and 6 other cryptocurrencies) as a legal tender.
This was made possible by the introduction of new regulations.
Before companies link their businesses to cryptocurrencies, they must first apply for a special license.
The Monetary Authority of Singapore (MAS) licenses and regulates Bitcoin exchanges across the country.
Cryptocurrency trading is legal in Singapore.
The government has no control over the financial activities of local merchants and other interested companies.
This means that you can pay for your favorite juice (or any kind of beverage ??) via Bitcoin.
Since the Singaporean authorities consider Bitcoin a good, they have imposed a goods and services tax on it.
Where possible, MAS has decided to leverage existing regulatory structures for cryptocurrency exchanges.
In Singapore, companies that are connected to cryptocurrency exchanges, are taxed according to the amount of Bitcoin they sell.
7. Central African Republic
The Central African Republic is another country that has adopted Bitcoin as a legal currency, which puts BTC on an equal footing with their own currency, the Central African franc.
CAR became the first country in Africa to take such a step and recognize BTC as legal tender.
Tax contributions can also be paid in cryptocurrencies through platforms recognized by the government.
The government of the CAR argues its decision will secure the country's independent financial future.
As of 2020, an estimated 9 out of 10 Central Africans do not have access to the Internet, a prerequisite for using Bitcoin.
A Few Things to Keep in Mind
Bitcoin is a good alternative if you are looking for a convenient payment method.
Whether you're investing or paying, cryptocurrency won't give you any trouble.
As we’ve already seen, digital currencies are a great way to manage your finances. More countries are likely to open up to cryptocurrencies in the next few years.
Although adoption is in progress, it still has a long way to go, so if you're interested in the topic of cryptocurrencies. You're in a good place to start or continue your crypto-journey!
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