Costa Rica introduces bill to legalize cryptocurrencies as a means of payment

The document approves the concept of digital currencies, as well as protects the rights of citizens to own this type of asset

29.10.2022 - 08:15

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2 min

What’s new? Costa Rican Congresswoman Johana Obando has introduced a bill to legalize bitcoin and other cryptocurrencies as a regulated payment method. According to Livecoins, the document includes the definition of “cryptocurrency” and also protects the rights of citizens to own such assets. One of the goals of this bill is to provide clarity and protection for those investing in digital currencies, which will help to attract additional funds to this area.

Material by Livecoins

More details about the bill. Obando explained that the document does not require anyone to accept bitcoins as payment, it simply establishes the ability to do so if both parties agree upon using it.

“The cryptocurrency assets market is very new. This bill wants to propose Costa Rica as an investment center for crypto-related people and companies to see Costa Rica as a growth niche,” congresswoman explains.

The bill also aims to integrate the banking system with the cryptocurrency economy. As Obando notes, banks will be able to act as custodial providers, wallet operators, and cryptocurrency exchanges.

In September 2021, El Salvador became the first country in the world to adopt bitcoin as an official means of payment. This means that both sellers and lenders in the country are required to accept the first cryptocurrency. The total amount of BTC in the country’s account is 2381 BTC (~$49,38 million at the Binance rate) as of October 29.

However, according to a University of Central America (UCA) study, 77% of El Salvadorans believe that the government should stop spending public funds to buy bitcoins. The same percentage of respondents called the legalization of BTC a bad idea. Earlier for this reason the IMF refused to give El Salvador a $1,4 billion loan. The fund believes that the legalization of the asset is a threat to the financial stability of the state.

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