Calls for Bitcoin coin adoption increase as more countries and sovereign entities continue to push for Bitcoin to become a legal tender.
Like El Salvador did in 2021, reports have emerged that political advisors in California are working on a new bill to make Bitcoin a legal tender. This move was made known in a tweet by the former majority leader of the golden state’s assembly Ian C. Calderon. He revealed that he was collaborating with Bitcoin expert Dennis Porter to draft a new proposal concerning the foremost cryptocurrency.
More Legislations Backing Bitcoin On the Horizon
The move by California comes on the heels of reports that its neighbouring state Arizona had a bill concerning Bitcoin presented to congress by its Senator. Senator Wendy Rogers put forward legislation to exempt cryptocurrencies from property tax. She announced the bill on Twitter.
Also, the Kingdom of Tonga has hinted at the possibility of making Bitcoin a legal tender by November this year. A former member of the Polynesian kingdom’s parliament, Lord Fusitu’a, made this known. The island nation had a first-hand experience with the digital asset when it received hundreds of Bitcoin donations to its relief fund. The aid fund valued at over $40,000 was used for recovery after a devastating volcanic eruption.
However, California’s effort is not a surprise. Last year, research by Crypto Head revealed that the Golden State came out top among the most crypto-ready jurisdiction in the United States. This was due to the growing number of crypto ATMs and increased interest in digital assets amongst its citizens.
In the crypto ready index for states, California scored 5.72. New Jersey came second with 5.44 while texas rounded up the top 3 with 5.28. Impressively, the golden state’s score was 2.54 points higher than the average of all the US jurisdictions.
These upcoming legislations regarding Bitcoin seem to support El Salvador’s presidents earlier predictions concerning Bitcoin in 2022. He predicted that two countries would adopt the digital asset as legal tender. So far, he seems spot on.
El Salvador Benefiting From Bitcoin
After rebuffing the IMFs warning about the potentially harmful effect of its Bitcoin policy, El Salvador seems to be benefitting immensely from the move. Economic data over recent years show that the central American nation has performed well since participating in the crypto space.
Data from the world bank reveals that since having a terrible fiscal year in 2020, El Salvador has managed to turn its fortunes around. The Covid -19 pandemic led to a fall in its GDP (Gross Domestic Product) in 2018 after reaching an all-time high of $26.9 billion in 2019. Since then, it has steadily grown, with projections for the year 2022 fixed at $26 billion.
El Salvador’s GDP. Source: World Bank
This development has coincided with El Salvador’s recognition among crypto enthusiasts globally. Investors may become more bullish on the country’s likelihood of economic success. Nabil Bukeye, the country’s president, is pressing harder to get more investors to participate in their economy by offering citizenship for its Bitcoin bond buyers.
Do you think more countries will adopt Bitcoin as a legal tender? Let us know your thoughts in the comments below.
Chris is a crypto enthusiast and a firm believer in the blockchain’s ability to create a new financial paradigm. Through writing, Chris hopes to expose the intricacies of this disruptive technology and how it is beneficial to Africans and developing countries. He aims to give readers a rational and unbiased outlook of the industry by equipping them with the necessary information to make enlightened investment decisions.
