An utterly bizarre and somewhat amusing twist in the adoption of cryptography by sovereign entities seems to be brewing in the Caribbean. Rolando Brison, a lawmaker from St Maarten, has announced that the nation is considering a bill to make Bitcoin Cash (BCH) legal tender. It comes after Briston became the first lawmaker and politician in the world to receive his salary in Bitcoin Cash.
According to the leader of the United People’s Party, Bitcoin Cash offers an additional viable medium for commerce, transactions, and savings. He further praised Roger Ver, the famous promoter of Bitcoin Cash, for helping to make St. Maarten the cryptocurrency capital of the Caribbean. According to the bill, Bitcoin and other non-fungible tokens would also be exempt from capital gains tax.
Bitcoin Cash—St. Maarten’s interesting choice for a legal tender
On-chain data shows that BCH is used by hundreds of merchants in the Caribbean. The region has become a hotbed of crypto adoption following El Salvador’s use of Bitcoin as legal tender. However, St Maarten’s choice of bitcoin cash is baffling given the availability of much more advertised and proven digital assets.
Bitcoin Cash was born in August 2017 following a hard fork of the Bitcoin network. It has an increased block size, allowing for larger transaction processing and improved scalability.
After initial enthusiasm for the asset, he largely failed to live up to his billing with Vilalik Buterin, calling him largely a failure. The Ethereum founder, whose protocol is transitioning to proof-of-stake consensus, previously hailed BCH as a legitimate competitor to Bitcoin in 2017.
After its launch, Bitcoin cash became one of the largest cryptocurrencies by market capitalization, overtaking Ethereum in 2017. However, the emergence of faster and better scalable alternative layers 1 and 2 caused it to lose its appeal. relevance.
It gradually fell into obscurity during the 2021 bull run, failing to gain enough traction to catch up with the other oldies. The disputed Bitcoin fork is down 91.03% from its all-time high of $3,785.82 set in December 2017. On spot exchanges, it is now trading at $351. Unsurprisingly, Ver has been silent on Twitter for almost a year.
With the whole crypto market going lately, Bitcoin Cash gained 20% last week, outperforming several altcoins. His performance may have been prompted by the news of his adoption in the small island nation.
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El Salvador’s experiment with bitcoin is failing, recent survey finds
More questions are now being asked about why countries like St. Maarten consider digital assets to be legal tender. El Salvador, which has been championing the cause for some time now, even defying the International Monetary Fund (IMF), continues to be plagued with problems.
According to a new survey from the Chamber of Commerce of El Salvador, most businesses in the country do not use Bitcoin. This week’s results are amazing considering Bukele’s efforts to promote the use of Bitcoin.
The study found that only 14% of respondents had used BTC in transactions since the cryptocurrency became legal tender in September. He further suggested that a substantial majority of respondents did not notice any impact on sales due to adoption.
Small businesses accounted for 70% of survey respondents, large businesses 15% and medium-sized businesses 13%. Despite this result, Nabil Bukele continues to be bullish on Bitcoin, with El Salvador owning 1800 BTC. However, adoption remains very low even with the government’s best efforts to promote the use of crypto.
This emerging situation now asks whether digital assets are better used as legal tender versus stablecoins or central bank digital currencies (CBDCs).
A new bill in the US Congress could require stablecoins to be 100% backed by cash reserves. On the other hand, the IMF has thrown its weight behind CBDCs, calling them the future of money. Which will come out the most suitable? Only time will tell.
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