A few years back, it would be considered a huge mistake if a country were to announce that they were adopting crypto as a legal tender.
However, as the cryptocurrency industry has gained worldwide recognition starting from 2020, the idea has started to make sense.
Now, things are becoming clearer pertaining to the adoption of cryptocurrencies as legal tenders. Up until now, several countries including the US and the European region have granted operational licenses to the cryptocurrency exchanges.
However, the idea of adopting a crypto or cryptocurrencies as a legal tender is still not something that every country thinks about.
A legal tender means that the particular asset becomes part of the economic system of the country or the region adopting it.
Any business or retail operating in the country is required by the law to accept such assets because they have a legal status in the particular jurisdiction.
If any business refuses to accept the particular asset, legal actions can be taken against them according to the regulatory laws of that country.
St. Kitts and Nevis to Adopt Crypto
So far, there is only one country, El Salvador that has taken the risk of adopting Bitcoin as a legal tender. The country inducted Bitcoin as a legal tender into its law in September 2021.
Since then, the country has continued rolling out the access of Bitcoin and its services to the locals. Whether it is making a payment for a service or shopping, Bitcoin is available in the country as a payment method.
El Salvador’s adoption of Bitcoin as a legal tender has been working like an inspiration for other countries in adopting the crypto they prefer in the same manner.
Brazil, Venezuela, and a few more countries are also considering the possibility of legalizing Bitcoin on their soil. However, a nation in the Caribbean has taken the lead after El Salvador but it is not adopting Bitcoin.
Instead, the nation has announced that they will be adopting Bitcoin Cash (BCH). The prime minister of St. Kitts and Nevis, Terrance Drew announced that they will be adopting Bitcoin Cash as legal tender.
BCH to become a Legal Tender
The prime minister announced on November 15 that they plan on adopting BCH as a legal tender. They are currently in talks about the matter and they are strongly considering the adoption of BCH as a legal tender.
They have already decided that they will be adopting Bitcoin Cash in the year 2023. As per reports, the nation wants to adopt BCH as a legal tender by the end of the first quarter of 2023.
Drew revealed that they are currently working on the crypto regulation framework and hope to finish it by the end of 2022.
By then, they will make necessary adjustments to smoothen the adoption of Bitcoin Cash as a legal tender. The country was also working on the development of their central bank digital currency.
However, they seem to have found multiple problems and issues with the development of the CBDC. They have also found multiple flaws in the central bank digital currency project known as DCash.
As they have continued facing a problem with the development and implementation of the DCash, they have decided to invest their efforts in Bitcoin Cash.
St. Kitts and Nevis is already working on a policy to better regulate and safeguard the interest and investments of the locals.
They aim to provide them with all the security and support possible while interacting and using the Bitcoin Cash.
So far, a bill has been proposed at the parliament of St. Kitts and Nevis for the consideration of legalizing BCH and holding the vote casting session.
It is a strong anticipation by the prime minister of the nation that the parliament may unanimously vote in favor of adopting BCH as a legal tender.
This is because BCH is already being used in the Caribbean country for payment related activities.