Costa Rica Mulls on Legal Use of Bitcoin for Daily Transactions: Report

Bitcoin Latin America

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Sujha Sundararajan

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Sujha Sundararajan

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Sujha has been recognised as 🟣 Women In Crypto 2024 🟣 by BeInCrypto for her leadership in crypto journalism.

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April 8, 2024 05:09 EDT

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Costa Rica has been one of few jurisdictions worldwide where cryptocurrency is commonly accepted asset. However, there are still legal obstacles concerning the ownership and trading of Bitcoin.

According to Jan3, a prominent crypto tech firm, the Latin American nation is considering a potential crypto law. The legislation would “compromise the ability to freely use Bitcoin as money for day-to-day transactions,” the firm wrote on X.

🇨🇷 Like most countries, Costa Rica lacks proper legislation concerning the ownership and trading of #Bitcoin and other digital assets. However, recently the nation has resumed debates around a potential crypto assets law that could compromise the ability to freely use Bitcoin as… pic.twitter.com/2weUPjOo0w

— JAN3 (@JAN3com) April 6, 2024

The government does not regulate cryptocurrency as a means of payment and the Central Bank of Costa Rica (CBCR) declared these asset classes are outside of the national banking system. Nevertheless, cryptos are accepted at an abundance of stores in Costa Rica.

As a result, the key concern was centric around effective Know Your Customer (KYC) and Anti-Money Laundering (AML) practices.

“Fears often linked to the crypto space have played its part in these debates, with KYC and AML practices being at the heart of the proposed measures,” Jan3 wrote.

Jan3 further said that the debates align with the company’s mission to help design Bitcoin policies that foster economic well-being rather than restricting potential growth opportunities.

Additionally, Costa Rican lawmaker Johana Obando, has been pushing legislation to regulate and recognize cryptocurrency in the jurisdiction. The Congresswoman has been “vowing to steer these debates to the right side of the conversation, seeing Bitcoin as a tool that can improve the lives of all Costa Ricans.”

Furthermore, Costa Rica offers cryptocurrency miners competitive advantages because the country has one of the highest renewable energy outputs worldwide.

Costa Rica’s Bitcoin Jungle

Talking about Costa Rica’s tourism, Jan3 mentioned that the country has made the “ideal home” for Bitcoin Jungle. This project aims to adopt Bitcoin in all economic and social areas in Costa Rica. It is centered around the Golden Triangle area and intends to cover the entire country.

Bitcoin Jungle facilitated its digital payment wallet, which helps Costa Rican merchants save on credit card fees, among other touted benefits of using the blockchain.

Costa Rica already boasts an impressive demand for tourism (contributing 6.3% of GDP according to the Costa Rican Tourism Institute) as its natural beauty attracts millions of visitors every year. It's precisely that that's made Costa Rica the ideal home for @BitcoinJungleCR,… pic.twitter.com/zMcyylntXM

— JAN3 (@JAN3com) April 6, 2024

“Grassroots projects like Bitcoin Jungle are key to better portray Bitcoin’s true qualities to politicians, but so is supporting Bitcoin allies like Johanna Obando,” the firm said.