In the previous decade, cryptocurrency has increased in popularity as a more convenient way to save, send, and invest money. The appeal of cryptocurrency is that it eliminates the need for a centralized third party because a digital wallet enables the storage and transfer of funds worldwide. However, not all countries and governments share the same views on cryptocurrency. At first, the majority of people dismissed it as a scam, and it was of no concern to any government. However, soon after, tech enthusiasts and financial giants began investing massive sums in cryptocurrency, and the general public followed suit. Several businesses worldwide started accepting it as a payment method. At present, crypto regulation is one of the most fascinating issues confronting legislators globally. Certain jurisdictions have prohibited it, while others have restricted its usage. However, just as with any other modern technology, cryptocurrency acceptability is increasing daily in terms of legislation, use cases, and investment. This article will analyze the state of crypto adoption in a number of countries:
Australia
Legislation
Australia became a fintech industry leader in 2017 when cryptocurrency was partly legalized there by the government. However, while considering how to acquire cryptocurrency in Australia, there are strict rules to be mindful of. When the government legalized these digital currencies, it proclaimed them to be subject to the “Anti-Money Laundering and Counter-Terrorism Financing Act of 2006 (AML/CTF 2006).” The legislation includes licensing of cryptocurrency exchanges, consumer protection, proper taxation, and international transaction regulations. However, a newly updated framework for digital currencies and transactions is currently in progress.
Use Cases
Cryptocurrency is widely accepted as a payment option by Australian businesses, both online and offline. However, there is much more room for growth. The list consists mainly of eateries and online dealers of technological gadgets. Gambling is the industry that has embraced cryptocurrencies the most. Several of Australia’s biggest online casinosaccept bitcoin as payment. Furthermore, Coca-Cola signed a contract with a digital wallet integrator to allow bitcoin payment in their vending machines in Australia and New Zealand during the COVID-19 situation in order to prevent physical contact as much as possible. To sum up, Australia is not yet completely suited for crypto money, although they have made significant progress in recent years.
Investments
As there is no issue with legality, crypto investment in Australia is very familiar. According to the IRCI, at least 29% of Australians currently own or have owned cryptocurrency in 2020. The tremendous increase in crypto investment is mainly driven by the good experiences of previous investors. 89% of crypto investors reported making money or breaking even, up from 78% last year.
El Salvador
Legislation
El Salvador is the world’s first country to entirely legalize cryptocurrency as a currency. El Salvador’s President Nayib Bukele said on June 5, 2021, that bitcoin, the first cryptocurrency, will become legal currency in the country. A few days later, on Sept. 7, the Bitcoin Law was enacted. In El Salvador, all establishments are required to accept bitcoin as payment for all services.
Use Cases
There is no need to describe the use cases separately as bitcoin is already a valid currency in El Salvador. Every business is legally bound to accept bitcoin as payment. However, you must have a Salvadorian ID and a Chivo Wallet to avail this facility. Moreover, the government has set up 200 ATMs across the country to deposit and draw cash from bitcoin.
Investment
With the legalization of Bitcoin as a currency, the future of crypto investing in El Salvador seems inevitable. Besides, the government itself is holding a large number of Bitcoins in the national reserve. The national reserve held almost 550 BTC. They bought 410 more BTC, worth $14.8M in the current year’s dip. Additionally, they have planned to establish a bitcoin city by funding government-maintained “bitcoin bonds.”.
The United Kingdom
Legislation
Cryptocurrency is not fully regulated in the United Kingdom. As of 2017, the United Kingdom’s government claimed that bitcoin is unregulated and is thus considered a ‘foreign currency for the majority of reasons, including VAT/GST. But it is not illegal to invest in cryptocurrency. The term “not fully regulated” refers to the fact that the procedure of exchanging crypto is not under consumer protection. Therefore, if your digital exchange account gets hacked, you cannot sue for compensation. Profits and losses on cryptocurrencies are subject to capital gains tax.
Use Cases
Several online retailers accept crypto payments on their site, but the number is minimal. Mainly the online retail shops that use the Shopify payment gateway service accept bitcoin payments. The most renowned retailers accepting bitcoin are overstock.com, airBaltic, Travala, Newegg, Etsy, Giftoff, Lush, etc.
Investments
According to the Financial Conducting Authority (FCA) research, “The average crypto holding among the British citizens climbed from £260 to £300 a year earlier, while the largest holding recorded by a respondent was £7 million. The projected 2.3 million cryptocurrency owners represent around 4.4 percent of UK adults and represent an increase of more than a fifth over a year ago when the amount was 1.9 million.
Final Thoughts
Despite being the most convenient and secure technology for transferring and storing money, cryptocurrencies are still not accepted by the majority of people worldwide. However, things are positively changing. Small countries are coming forward to embrace this revolution and utilize it for their best, while large countries are still stuck at paperwork and bureaucracy. It is expected that the scenario will dramatically change throughout the current decade.
