Last week, Ukraine legalized cryptocurrency in a near-unanimous election. And it looks like the former Soviet bloc republic is acquiring things a step further by making Bitcoin legal tender.
Legal tender refers to a lawfully recognized means of exchange to settle a debt or meet a financial responsibility. In other words, if enacted, Bitcoin would have the same status as the Ukrainian hryvnia, meaning paying for everyday things with BTC would become possible.
El Salvador made history as the first sovereign nation to make $BTC legal tender last week. However , the particular roll-out has not gone away without a hitch – something Ukrainian delegates will be nicely aware of.
Ukraine Wants To Re-Invent Itself As being a Crypto Mecca
It’ s reported that Ukraine’ s President Zelensky has sent a team to El Salvador on the fact-finding mission to aid their plans for crypto use.
Cryptocurrency is becoming something of a political football for President Zelensky, and judging by last week’ s unanimous vote to legalize it, it’ s one which his fellow politicians assistance.
According to Professor Vyacheslav Evgenyev, the President hopes to bring in a dual currency system featuring each Bitcoin and the hryvnia with the beginning of 2023. This individual even broaches the possibility of BTC being pushed as the major currency of the two.
Evgenyev said Bitcoin and Ukraine are a “ natural fit. ” Adding that his fellow compatriots are ready for “ financial revolution. ” And provided the country’ s great turmoil, the people even anticipate upheavals.
The words come in reference to the frosty relationship Ukraine has along with Russia. Evgenyev said Bitcoin could be the driving force in order to step away from “ Russia’ s overbearing influence. ”
“ It has a young population desperate to move out of the shadow of its noisy neighbour and get rid of the financial chains which have restrained it for a lot of years. ”
With many commonalities in between Ukraine and El Salvador, including a great desire for monetary change, President Zelensky and President Bukele have created a close personal relationship.
“ They have been in constant discussion – sharing ideas, plans and thoughts on the future financial roles of their nations. ”
El Salvador Has Bitcoin Snags
As much as Bitcoin will be held as the great monetary equalizer, its path to legal tender in El Salvador hasn’ t been smooth. Far from it.
The most notable uprising came from the particular IMF and World Bank, who voiced resistance to the move.
There was also protests with the community calling for a repeal in line with the view that cryptocurrency isn’ t for working people.
All of these things finished with the Chivo wallet app crashing on the day of start. President Bukele took to Tweets to say the servers couldn’ t cope with the visitors.
“ For a few moments it won’ t work @chivowallet , we have disconnected it whilst increasing the capacity of the image capture servers. The set up problems that some people had were for that reason. We prefer to appropriate it before reconnecting it. ”
However , a week on, and there are reports that the app remains buggy and sometimes unusable.
Taking this into consideration, President Zelensky has his function cut out. But on the plus side, with over a season to go, and being able to draw on the experiences of El Salvador, Bitcoin as legal tender in Ukraine may be an altogether more polished affair.