Bitcoin — new legal tender in countries?

Yaroslav Bogdanov, Сhairman of the Board of the Fund for Protection of Investors' Rights in Foreign States

Yaroslav Bogdanov, Chairman of the Board of Fund for Protection of Investors' Rights in Foreign States, believes that bitcoin in the nearest future may be recognized as a means of payment by some Latin American countries.

For now, inflation in Latin American countries remains at extremely high level. Law on bitcoin, which recognizes it as legal tender along with other currencies, will come into force in El Salvador on September 7.

El Salvador’s cryptocurrency policy has received absolute support from the Central American Bank for Economic Integration (CABEI).

— CABEI member countries such as Nicaragua, Guatemala, Costa Rica, Panama, Honduras, Dominican Republic, Mexico, Taiwan, Belize Argentina, Colombia, South Korea, Spain and Cuba support its position as a unified body. That is to say, we may assume that most of the participating countries agree with the decision of El Salvador, explained Yaroslav Bogdanov.

According to the expert, Panama, Paraguay, Brazil and Argentina are likely to be among the first countries to recognize bitcoin.

— In Argentina, bitcoin has been a popular means of payment for a long time because of problems with the fall of the national currency. The inflation rate there was 54% in 2019 and 42% in 2020, the expert recalled.

Earlier Yaroslav Bogdanov came up with an idea to protect personal data of citizens. The lawyer believes that this could be done by the International digital arbitration.

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