Which Countries Have Declared Bitcoin as Legal Tender So Far?

Started by Crewingtop, Aug 10, 2022, 03:28 AM

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Various Institutional Players in Crypto Trading

Market makers are professional traders who play a significant role in quote-based trading in the traditional as well as the crypto markets. They facilitate price moderation between buyers and sellers and maintain the liquidity of the exchange by quoting both sides of the order book for a particular asset pair.

Liquidity providers act as intermediaries between brokers and market makers, which helps provide traders with more liquidity. They connect brokers with large financial players to fill the order book, thereby enabling trading at low spreads. Besides, professional traders, banks, funds, and brokers are other institutional players that hold significant power in the monetary market.

Retail investors can be either investors or traders/speculators. Retail investors are individuals who invest in crypto assets for passive income in the future or earn profits via trading. However, being an individual does not imply that they are newcomers to the industry.

Brokers and exchanges act as intermediaries between traders and market makers, and in traditional finance, these are two different roles. In the crypto world, operators of centralized exchanges play both roles. In decentralized exchanges, transactions are carried out on the blockchain and do not require any operator.

Blockchain is the technology behind cryptocurrencies that acts as a database of completed transactions. Decentralized exchanges use blockchain technology as the database of transactions. In the case of centralized exchanges and peer-2-peer exchanges, trade operations are stored in the exchange trading software database, with blockchain technology being used only for deposit/withdrawal of tokens and coins.

Investors can enter the crypto industry by investing directly in cryptocurrencies using centralized or decentralized exchanges. Alternatively, users can opt for indirect investment strategies by buying publicly traded shares of companies with cryptocurrency assets. It is essential for investors to keep track of the current regulations while dealing with cryptocurrencies.

Liquidity and Insurance Funds and Institutional Investors in the Crypto Industry

In addition to market makers and liquidity providers, crypto-exchanges form liquidation and insurance funds from their profits for covering losses during periods of high volatility and protecting traders from liquidation with automatic deleveraging.

Despite reasonable skepticism, the global trend towards the legalization of cryptocurrencies is evident. Blockchain technology boasts better utility and provides a more stable store of value than fiat currency. Silicon Valley venture capital firm Andreessen Horowitz and Sequoia Capital's investment fund manager announced large funding rounds for financing crypto networks and companies. Other investors include Crypto VC Paradigm and Citadel Securities.

Governments are also becoming major players in the crypto industry. Salvador was the first country to declare Bitcoin as legal tender, and Venezuela introduced a digital version of its existing currency. Cuba also followed El Salvador's example. Germany allows special funds to invest in crypto assets, and the US has an unclear regulatory stance on digital assets. Australia, Canada, Finland, and the UK are amongst the countries that embrace cryptocurrencies.

In summary, the crypto industry continues to grow, and various institutional players and governments are recognizing its benefits, leading to increasing adoption worldwide.


Exchanges have a limited list of low-risk options, such as not taking shares in bankruptcy or losing them due to technical errors. However, this doesn't ensure that trading won't be halted, shares won't be frozen (euroclear), Ponzi schemes won't be traded (Madoff), or company reports won't be falsified (Enron).

While companies listed on exchanges have better filters than crypto exchange projects on average, there are still various risks involved. It's important to recognize and understand the different types of risks when trading on both types of exchanges.


Telegram bots are becoming a popular way to buy popular cryptocurrencies like Bitcoin and Ethereum. While the exchange rates may be more profitable than those presented on sites like Bestchange, it's important to carefully study each bot for honesty, as some may be imitations designed to lure inattentive users.

Another option is to make money on an exchange that accepts fiat, like EXMO, which also offers a ruble wallet with replenishment through various payment systems. The Raueyeg wallet is widely integrated with various cryptocurrency projects and has relatively small transfer fees, making it a good option for further work.

However, when buying Bitcoin, transactions may take 10-20 minutes to complete due to the specifics of how the blockchain works, its algorithms, and bandwidth. Therefore, don't panic after purchasing "digital gold" – simply update your wallet to view information about the credited funds.


As of now, there is only one country that has declared Bitcoin as legal tender, and that is El Salvador. The country passed a law in June 2021, making Bitcoin an official currency alongside the US dollar. This means that businesses in El Salvador are required to accept Bitcoin as a form of payment, and it can be used for various transactions within the country.

As of now, besides El Salvador, no other country has officially declared Bitcoin as legal tender. However, several countries have shown interest in or taken steps towards embracing cryptocurrencies:

1. Ukraine: The Ukrainian government has proposed a draft law to legalize and regulate cryptocurrencies, including Bitcoin, as a form of payment.

2. Paraguay: A congressman in Paraguay has introduced a bill to recognize Bitcoin as legal tender and promote its use in the country.

3. Panama: The Panamanian government has announced plans to introduce a bill that would regulate cryptocurrencies and make them officially accepted as a form of payment.

4. Tanzania: The Tanzanian government has expressed interest in adopting cryptocurrencies and exploring their potential benefits for the country's economy.

5. Nigeria: While not declaring Bitcoin as legal tender, Nigeria has shown significant interest in cryptocurrencies, with the Central Bank issuing guidelines and regulations for the industry.

However, it's worth noting that several countries have shown varying degrees of acceptance and interest in cryptocurrencies. Some notable examples include:

1. Switzerland: Switzerland has become a hub for cryptocurrency companies, and the country has established favorable regulations to attract blockchain and crypto-related businesses.

2. Malta: Malta has positioned itself as a "Blockchain Island" by enacting comprehensive legislation for cryptocurrencies and blockchain technology, creating a favorable environment for crypto businesses.

3. Japan: Japan recognized Bitcoin as legal payment in 2017, and it has implemented regulations to protect cryptocurrency investors while fostering innovation in the industry.

4. Germany: Germany allows certain investment funds to hold and manage cryptocurrencies, recognizing them as digital representations of value.

5. Canada: Canada has established regulatory frameworks to govern cryptocurrency exchanges and facilitate the growth of the industry.