There are currently only two countries in the world where Bitcoin has been officially declared legal tender.
Bitcoin as legal tender
Both are poor or relatively poor countries with a small number of inhabitants.
The main thing they have in common from a monetary point of view is that they do not have their own national fiat currency.
The first of them was The Saviora small Central American state with around 6.5 million inhabitants, and 112th in the world in GDP per capita adjusted for purchasing power.
Not having its own national currency, the country uses the US dollar as its legal tender fiat currency, and in September 2021 it also incorporated Bitcoin alongside the dollar as its second legal tender.
Central African Republic
The second was the Central African Republic (CAR)a medium-sized state in Central Africa, but with less than 6 million inhabitants. It is one of the poorest countries in the world with an annual GDP per capita (PPP) of just over $500, ranking it 179th overall in the world.
The country uses the so-called CFA franc, issued by France’s central bank, as its fiat currency, and in April decreed that Bitcoin will be legal tender there as well.
The total number of people in the country is just over 12 million, which is just over half the size of New York City.
interest around the world
Currently, there are other states that seem willing to do something similar, although a state with a national currency might also be much more reluctant to do that. Bitcoin be legal tender.
Of all the countries that seem willing to encourage bitcoin expansion In their countries, the most interesting is Mexico, both because it has almost 130 million inhabitants and because it is very close to the US. Furthermore, although it ranks 67th in the world in GDP per capita (PPP), it is 14th in the world in total nominal GDP.
However, there are many other countries where, although it is not legal tender, Bitcoin is commonly accepted as a form of paymentalthough not by force and not by all.
In this sense, the first to recognize Bitcoin as a currency was Japan, which not only has more than 125 million inhabitants, but is also by far one of the richest countries in the world, ranking third in total nominal GDP. Y 28th in GDP per capita (PPP).
Lately, the places where Bitcoin can be commonly used as a currency are also multiplying in Switzerland, starting with the Lugano city.
Another city that is taking giant steps in this direction is Miami, USA, with New York apparently following suit.
A country where the use of Bitcoin and cryptocurrencies seems to be relatively widespread is Germany, while in Russia BTC circulates a lot, mostly under the radar, because the Russians seem to like it a lot but the regulations still do not recognize it as a currency.
Russia and Ukrainein particular due to the blocks on the use of fiat currencies in electronic format, seem to be increasingly open to the use of cryptocurrencies, even if their current situation does not really work in their favor.
However, if the war ends, the use of cryptocurrencies could be resumed on a large scale, especially if they actually enact favorable laws, such as they seem to try.
Also in Australia, it seems that there are many places where Bitcoin can be used as a means of payment, even if there is no specific law that allows it.
In addition, there seem to be fewer and fewer states that prohibit the use of cryptocurrencies, and more and more those that have a legal framework that legalizes their use, even without declaring them legal tender .