Over the past few years, the word cryptocurrency has been uttered by a wide range of people ranging from peoples grandmas to Silicon Vally tech entrepreneurs like Elon Musk; who has become a very vocal voice within the cryptocurrency space, Elon has even shown off his ability to significantly affect cryptocurrency market conditions at a whim. According to Techpatio “A cryptocurrency is effectively a decentralized, digital currency that uses cryptography methods to perform and record transactions”. An important note to make before we begin is to ensure that you are vigilant when trading and using cryptocurrencies, as if you lose your cryptocurrency in trading scams there is no way to get your money back, unlike traditional regulated FIAT money, such as British Pounds, American Dollars or European Euros.
When most people think of countries that accept cryptocurrencies most people will think of El Salvador first, as in 2021 they were the first country in the world to accept cryptocurrency as payment. In total so far El Salvador has already purchased 2,381 bitcoins for $107m. According to Aljazeera citizens of El Salvador can purchase goods and services from an ever-expanding range of local businesses, alongside global businesses that operate within El Salvador; including McDonald’s, Starbucks and Pizza Hut. El Salvador is also making waves in the international cryptocurrency trading market, having introduced “regulations for relieving foreign investors from income or capital gains taxes on cryptocurrencies.” according to 101 Blockchains
Slovenia is another country that has begun to embrace cryptocurrency, according to Finextra ‘Slovenia has emerged as the most ‘crypto-obsessed’ state in Europe”. Figures show that there are 100,000 cryptocurrency-focused internet searches a month, this is staggering considering that the population of Slovenia currently stands at 2.1 million. This means that out of every 100,000 people, there are an average of 4,789 cryptocurrency searches a month according to Finextra. This mania is fueled by the fact that Slovenia does not impose any taxes on cryptocurrency mining – which is where computers are used to generate new cryptocurrency tokens for the user conducting the minding. Additionally, the government of Slovenia also offers a generous range of tax write-offs for cryptocurrency trading.
Germany is a surprising addition to this list for many, but it is official – Germany does allow businesses operating within the country to sell goods in exchange for cryptocurrency. However, those interested in buying goods with crypto may still be subject to VAT. According to Token Tax Germany is also an attractive place for cryptocurrency traders, as financial gains from cryptocurrency held for more than a year are not subject to tax, and are therefore tax-free. However, if you have held your cryptocurrency for less than that time and are looking to sell you still may not have to pay tax on your gains. Cryptocurrency gains that are less than €600 per year are tax-free.
Malta is another cryptocurrency hotspot that is most definitely worth a mention on this list. What makes Malta different from many other countries is the fact that the country has worked to “enact a comprehensive legislative package aimed at creating a regulatory ecosystem in which the industry could operate and proliferate.”. This provides both the general public and the government with a set of legally binding rules and regulations. This can help members of the public to be more responsible with their investments, as they can definitively check if something they are doing is actually legal or not instead of existing in a grey area like in most countries.
Interest in the cryptocurrency space is steadily increasing year on year, according to Swyftx “an estimated 4.5 million Australians currently own crypto compared to 4.2 million in 2022 and 3.4 million in 2021.” Seemingly the adoption rate of cryptocurrency is gaining traction, with Swyftx claiming that over 1 million Australians plan to enter the cryptocurrency market within the next year.
Cryptocurrency adoption has really taken off in the past couple of years and it shows no signs of slowing down, in fact, it appears to be speeding up. As countries make moves towards cryptocurrency adoption, other countries can observe the various implications cryptocurrency has on the country as a whole. Informing countries about what to expect and how to prepare themselves to embrace cryptocurrency themselves.