Bitcoin legal tender in some countries

What should you know about bitcoin?

Bitcoin is the assembly of the English terms “bit” which is the unit of binary data and “coin” for currency. It is a virtual currency designed and mentioned by Satoshi Nakamoto in 2008. Unlike physical currencies such as the euro or the dollar, bitcoin does not depend on any authority and financial institution. Even though it is not banned by any central body, this currency follows a variable course. Its value increases or decreases depending on supply and demand. Bitcoin transactions are secured by the blockchain technology. This system stores and transfers information transparently and completely securely. If you wish, you can invest in this digital currency. Among other things, you can buy bitcoins at competitive prices on LiteBit. This platform also allows you to buy ethereum, another cryptocurrency. In addition, you also have the possibility of selling your currencies and increasing your trading impact on the site.

Why have some countries decided to make bitcoin legal tender?

With the evolution of technology and the revolution of the monetary system thanks to cryptocurrency, some countries have decided to elevate bitcoin to the rank of legal tender. This is the case of salvador. This Central American state is the first country to legalize the circulation of bitcoin as an official currency. Since September 7, 2021, merchants and all Salvadoran financial institutions are required to accept any payment through this cryptocurrency. This decision aims to reduce dependence on the US dollar and to optimize the population’s access to the banking and financial system. The objective is also to facilitate the transfer of funds from abroad.

After El Salvador, the central african republic is the second country in the world to adopt bitcoin as its official currency alongside the CFA franc. It is therefore the first African country to revolutionize its monetary system. This decision was taken to solve the difficulty of receiving and sending money in the country. Thus, in the Central African Republic, bitcoin is authorized in the context of online commerce transactions, money transfers and tax contributions. Cryptocurrency exchanges are also exempt from taxes.

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