Not Bitcoin? What is the most appropriate way of cryptocurrency adoption as legal tender? Based on the case study of Bitcoin adoption in El Salvador

Absztrakt (kivonat)

The popularity of cryptocurrencies increases each year, which could be clearly observed from the number of cryptocurrency wallets being registered each month. Therefore, the demand for cryptocurrency legalization is logically approaching. In September 2021, the first country in the world, El Salvador, officially adopted Bitcoin as the legal tender. This phenomenon has set up a trend of cryptocurrency legalization in Latin America. This paper aims to discover the potential outcomes of cryptocurrency adoption as a legal tender. First, we figure out if cryptocurrency could even become a national currency by defining whether the most famous digital currency Bitcoin fits the requirements and attributes of the legal tender. Then, based on the possible and already visible consequences of such adoption in El Salvador, we seek alternative ways of digital currency adoption that could overcome the Bitcoin vulnerabilities. The research includes a comprehensive case study analysis that covers both legal and social aspects based on the Bitcoin legislative framework in El Salvador and an extensive national survey Finally, the focus is on the research objective: to answer, what is the most appropriate way of cryptocurrency adoption as a legal tender.