Bitcoin is a new form of currency that has no physical counterpart, but is utilized by billions of people around the world. It also has no single authority which facilitates transactions on its network, meaning that Bitcoin cannot be counterfeited.
The country considering Bitcoin as its second national currency is Ecuador. This comes after the country’s current financial system was hit with major economic problems in 2010, which led to the country having to borrow money from external sources in order to finance its budget deficit.
This would mean that Ecuador would be the first nation in the world to have a completely digital currency as their national form of money-making it an interesting test case for Bitcoin’s future.
The country’s government is looking to make a major leap in the cryptocurrency industry by adopting bitcoin as a legal currency.
The country is one of a few around the world that could soon be home to a centrally-backed cryptocurrency. After the success of Venezuela’s petro, this would be an impressive feat. If it succeeds, it could be a major milestone for crypto adoption.
Cryptocurrency has been on the rise in recent years, and countries are exploring how they can use it for their own benefit. With so many countries banning bitcoin or not legitimizing it as legal tender, this move by Belarus would have huge ramifications for other countries looking to adopt cryptocurrencies too.
Though cryptocurrencies are banned in China, some countries are turning to them as a way to create their own national currencies. This is because, unlike with traditional money, the central bank of the country cannot devalue this type of currency by increasing the supply.
The most recent example is Uzbekistan. As it turns out, the country has become one of the first to explore making Bitcoin its second national currency after Russia announced its intentions to create a state-backed cryptocurrency called “crypto-ruble.” And while some countries see no reason why they couldn’t adopt this type of currency for themselves, others worry about it’s potential impact on inflation and on existing financial systems.