Saint Kitts and Nevis could become the first country in the world to adopt Bitcoin Cash as legal tender next year.
The Federation of Saint Kitts and Nevis, an island country located in the West Indies, is considering legalizing Bitcoin Cash in the country.
Terrance Drew, the current Prime Minister of St. Kitts and Nevis, announced the news during the Bitcoin Cash 2022 conference held this past weekend.
During his participation in this conference, Drew highlighted the possibility of creating a regulatory framework that would allow the adoption of Bitcoin Cash (BCH) as legal tender in the country. However, the Prime Minister of the islands also stated that the nation is conducting due diligence and consulting with experts to evaluate this possibility, in order to guarantee the necessary safeguards for both the country and its citizens.
If a law is passed allowing for the legal adoption of Bitcoin Cash, the Federation of Saint Kitts and Nevis would become the first country in the world to make this cryptocurrency its legal tender.
A plan to mine Bitcoin Cash and boost the national economy
One of the main motivations that the Prime Minister of Saint Kitts and Nevis highlighted for supporting Bitcoin Cash as legal tender is the potential that cryptoassets have to contribute to the growth of local economies.
During his speech, Drew said that St. Kitts and Nevis is very interested in exploring the opportunities offered by Bitcoin Cash, including crypto mining. In fact, the leader highlighted that the island nation has plans to participate in this activity in the future.
Drew also commented that many businesses on the islands are now accepting cryptocurrencies as a means of payment.
“I welcome the opportunity to engage in further dialogue, with a view to exploring future opportunities to engage in Bitcoin Cash mining and making [the cryptocurrency] legal tender in St. Kitts and Nevis by March 2023.”, Drew said.
The Prime Minister of the islands expressed his confidence in cryptocurrencies as a way to contribute to the growth and development of the country. Regarding Bitcoin Cash, Drew commented that the cryptocurrency can attract new companies and encourage foreign capital investment.
A Crypto-Friendly Nation
This is not the first time that the Federation of Saint Kitts and Nevis has expressed interest in the crypto industry. According to the Cypher Bits media outlet, which specializes in Bitcoin and Bitcoin Cash, in 2020 the region's Financial Services Regulatory Commission approved a bill to recognize cryptoasset companies.
The islands' Prime Minister at the time, Timothy Harris, had stated that companies providing cryptocurrency services should be subject to the supervisory regime, to ensure compliance with anti-money laundering regulations and, by extension, FATF (Financial Action Task Force) standards.
More countries recognize cryptocurrencies as legal tender
Despite the uphill battle in the cryptocurrency market following the FTX events, more countries seem willing to bet on this new class of digital asset to strengthen their economies and boost technological innovation.
As reported by this media, in September 2021, El Salvador became the first country in the world to declare a cryptocurrency as legal tender. It was Bitcoin, the most capitalized in the entire industry. El Salvador was followed by the Central African Republic, which in April of this year, presented a regulatory framework to accept Bitcoin as legal tender and build a favorable environment for the development and growth of the crypto industry.
Also, the cities of Valley of Angels and Prospera, located in Honduras, have been implementing Bitcoin payments since this year, in order to provide their residents and tourists with the experience of paying with the most important cryptocurrency on the market in many of their businesses.
From Mexico and the state of Arizona (United States) Senators Indira Kempis and Wendy Rogers, respectively, have also taken an interest in Bitcoin and cryptocurrencies and are pushing several regulatory proposals to transform their systems and integrate Bitcoin as legal tender.
What is Bitcoin Cash?
Bitcoin Cash (BCH) was born as a result of the first major hard fork made to Bitcoin in 2017. The cryptocurrency It was developed with the intention of increasing the scalability and capacity of blockchain, in order to allow transactions with cryptoassets to occur more quickly than with Bitcoin, to serve as a payment system on a global scale.
At the time of writing this article, BCH is trading on the market with a price of $ 104 dollars and ranks as the 27th most capitalized cryptocurrency in the industry.
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