Countries where Bitcoin is the most welcomed

by Josh Biggs in Blockchain on 24th December 2020

As more and more people purchase Bitcoin to escape the economic instabilities that we are currently experiencing, some countries seem to be more welcoming than others. 

Bitcoin has long proven its ability to separate one’s wealth from the state, and this can be extremely useful for countries that have fallen into hyperinflationary situations. Additionally, the popular cryptocurrency is the point of attention when it comes to the development of smaller countries without much power or saying on a global scale.

In this article, we discuss which countries most benefit from Bitcoin, and which use the popular cryptocurrency as a way to increase their authority as nations. Let’s delve in.

Welcoming cryptocurrency as the bull market continues

What most people don’t know is that Bitcoin is not simply accepted or not accepted as a store of value and alternative cryptocurrency. This is very “black and white” thinking. We are currently at the industry’s price discovery stage, and several countries need or want Bitcoin for different reasons. More specifically, there are three types of countries we will be talking about.

  • Counties where Bitcoin is providing a solution to a problem
  • Countries that are using Bitcoin to elevate their status
  • Countries that do not oppose the evolution of blockchain technology

Counties where Bitcoin is providing a solution to a problem

As mentioned in the introduction of this article, there are several countries, especially those situated in Latin America, that are experiencing the negative side effects of hyperinflation. Countries like Venezuela and Argentina are in most need of Bitcoin and its underlying technology to preserve their wealth and not fall victim to the ever depreciating FIAT currency that they are forced to use.

Colombia is also in the same boat. The president of the country created the country’s official cryptocurrency Petro, in an unsuccessful attempt to better control the depreciating currency of the nation. The experiment did not work out, but Colombia still managed to amass a large amount of Bitcoin, storing it into the country’s cash reserves.

Finally, Brazil, Chile and Mexico are also suffering from highly depreciating fiat currencies, which decrease the buying power of the public on a rapid pace. Therefore, the consumers of the country are welcoming cryptocurrency, and crypto exchange signups are booming.

Countries that are using Bitcoin to elevate their status

These are generally smaller countries that do not have much authority but wish to become part of the evolving technological revolution. The first country that comes to mind is, of course, Malta. The tiny island-nation welcomed all new cryptocurrency businesses, giving them better operational terms, more flexible regulatory measures, and low taxation.

Other countries that seem to be interested in this are the Baltic states (Lithuania, Latvia, and especially Estonia), having placed low capital gains taxes on the amounts to be taxed, as well as a no-trading tax at the current time of this speaking. It is worth noting that the Baltic states regularly host hackathons and sponsor new projects that aim to accommodate blockchain technology which could in turn increase crypto prices.

Finally, and this one is still not fully accepted as of this moment, India is also looking to accept cryptocurrency purchases and blockchain technology. The country had previously put a ban on Bitcoin since 2014, not allowing anyone to use their bank account to make purchases directly on exchanges. Today, however, many large projects are not only created in but also operated from India. These include popular exchange WazirX, Matic, and more.

Countries that do not oppose the evolution of blockchain technology

At the moment, most countries are not opposed to the concept of cryptocurrency. More banks are now offering custodial solutions, while many industries are being disrupted with the help of blockchain technology. Some countries, however, tend to favor the concept more than others.

Germany is a good example. The country offers no capital gains taxes to users who choose to cash out cryptocurrency that has been in a wallet for longer than 2 years. This makes the country a favourable place for many long term HODLers.

China and Sweden, on the other hand, are currently testing new digital currencies based on Blockchain technology, aimed to completely replace cash as a means of payment. The digital Yuan in China has already been tested in 4 different locations and seems very promising.

Wrapping up

At the moment, countries are still somewhat skeptical when it comes to the concept of cryptocurrencies. Some seem to have taken the first step towards accepting the new financial technology as part of their future. Others, like the USA, feel rather threatened by its presence.

That being said, eventually all countries will need to find a way to coexist with this new form of money. And those who choose to be the first to invest their cash reserves into Bitcoin are the ones that will benefit from it the most in the long term.

Categories: Blockchain