Uruguayan Lawmaker Proposes Bill to Treat Crypto as Legal Tender

aku_sultan20

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Quote from: romero121 on August 04, 2021, 07:59:25 PM

That truly support the Uruguay citizens free to use bitcoin and other cryptocurrencies. By the time through the bill it is also into discussion about the law for mining of cryptocurrencies. When cryptocurrency usage is legalized automatically mining must be taken into consideration. If not this would be a big issue.

In recent days Iran faced such an issue. It legalized the usage of cryptocurrency, but there is nothing specific about cryptocurrency mining. When China closed doors for mining, more miners were moved to Iran due to the low electricity consumption charge. The same has resulted in making the government think of banning cryptocurrency usage. Because, without any proper licensing more than 85% miners are run. This illegal form of mining has caused severe power failure issue and the government isn't able to meet the needs. Only 5% miners are running in a legitimate manner.

I've also heard this in some countries. Many people take electricity in a steal.
As happened in Warsaw Poland recently, a computer technician was arrested by the Polish National Police for illegal mining at a police station. He stole electricity to mine cryptocurrencies.

Not only stealing the electricity supply, he also uses a computer owned by the police to mine cryptocurrencies. for the benefit of the dark-eyed brand. What is the best way for those who do not have enough capital. I understand about crypto but want to own bitcoin??.. Other than the act of stealing.
Crypto curency with the art of crypto grafi makes computer taknisi / individuals want to develop talent. About the love of computers

Sebas.tian

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Many countries are preparing to legalized bitcoin so that their citizens will have full access to cryptocurrency in the country. Since it is educated people that raised such bill in the country, it will definitely stand and it will bring positive change to their country. The lawmakers have heard how other countries are using bitcoin to grow their economy and other activities in the country by legalized bitcoin for the country.
If the government can sign such bill into law so that bitcoin can be legal in the country, it will bring a lot of changes to the communities in the country. It will reduce inflation in the country and maintain deflation to allow the citizens to enjoy the economy as never before.

aku_sultan20

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Talk about Juan Sartori. He was an influential man with many great influences under him.
Lately I often come across good topics about bitcoin and crypto curency I am happy and hopefully will be assimilated in all countries. Although maybe the bill of each state has rejected it. Although only 3 countries bill that accept bitcoin. Panama.. uruguai.elsalvador but I am optimistic that other countries will follow.
Thank you for adding reference to my knowledge. Will bitcoin be against the dollar? Or be a good partner?

kryptqnick

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If it's just a draft bill, let's not get too excited. Many bills are killed early on, and this one offers something quite innovative and untested, so this might end up to be one of those proposals that never get implemented. If it does gain enough support, this could be awesome news and gain way more attention than a similar decision in El Salvador. The reason for this is that El Salvador is in a terrible economic and political situation, so it's not surprising that they might try adopting Bitcoin out of desperation. Uruguay, on the other hand, seems to have a very decent economy, so its example can get more countries interested in treating Bitcoin as money and potential benefits of this decision to an already good economy.

DooMAD

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Quote from: dkbit98 on August 07, 2021, 10:44:08 AM

Real question is what is better option for Bitcoin, to be legal currency or legal tender?

I'd imagine that's entirely subjective. Everyone is going to have their own thoughts and opinions on it, so I don't think there's a right or wrong answer to it. Particularly when we still don't know the outcome yet. It's still another month or so to go before we find out for certain what impact El Salvador is going to have. People assume Bitcoin as legal tender there will be a net-positive thing, and I certainly hope it will be, but this is something that's never been attempted before. I'd like to see it in action before I draw any conclusions. I forget the date it becomes legal tender in El Salvador, but I'm sure it was in September.

Ask me again in October, heh. Grin

Charles-Tim

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Quote from: dkbit98 on August 07, 2021, 10:44:08 AM

Go Uruguay go!
I won't be happy about this news until I see this confirmed, but if this bill comes true than Uruguay will be the second Bitcoin domino that will create cascade of events around the world, all starting from South and Latin America.

The thread title is misleading, Uruguay is not making Bitcoin a legal tender as I have commented before on this thread, they only want to make legal businesses in the country to accept Bitcoin.

Quote from: dkbit98 on August 07, 2021, 10:44:08 AM

Real question is what is better option for Bitcoin, to be legal currency or legal tender?

Both, but making Bitcoin a legal tender could help more in adoption as some countries legal tender means that citizens are forced to accept Bitcoin as a payment method. Like in El Salvador, if you want to pay in Bitcoin to anyone, the person has no choice than to accept. But Bitcoin gives freedom, while people should not be forced to accept Bitcoin, it should be their choice. It would have been best for countries to just make Bitcoin a legal form of payment which can still also increase Bitcoin adoption and the use of lightning network for payment.

Making Bitcoin a legal form of payment is better, and this is what Uruguay and Ukraine are working towards now, and I believe some other countries will follow.

Lawmaker Proposes Bill to Allow Crypto to be Used for Payments
New bill in Ukraine to allow payments in cryptocurrency, says official

dkbit98

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Quote from: DooMAD on August 06, 2021, 05:43:42 PM

This sounds closer to what Japan have already done, where Bitcoin is a legally recognised currency, but not legal tender. People often confuse the two. A currency can be accepted by a business if they choose. Whereas legal tender must be accepted and businesses have no choice about that. You can pay your taxes in legal tender, but can't pay them in other currencies.

Real question is what is better option for Bitcoin, to be legal currency or legal tender?
I don't know how many business in Japan officially accept Bitcoin, but I am sure that it will be more of them accepting BTC in El Salvador according to what you said about legal tender.
Nor exactly sure how this thing will play out in Uruguay and other countries, but regulations is changing so quickly and it's hard to follow it.
I would much rather have less government parasites, less rules, less regulations and more freedom, but it looks like many people can't or won't live like that.

DooMAD

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This sounds closer to what Japan have already done, where Bitcoin is a legally recognised currency, but not legal tender. People often confuse the two. A currency can be accepted by a business if they choose. Whereas legal tender must be accepted and businesses have no choice about that. You can pay your taxes in legal tender, but can't pay them in other currencies.

DdmrDdmr

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I’ve been reading the prosed law (in Spanish), and as @Charles-Tim pointed out before on this thread, CoinsDesk’s article has been corrected, and the scope of the law played down to a smaller range, allowing crypto to be used to make payments to companies (*) as a payment method, but not equating the move to legal tender.

Nevertheless, after reading the proposed law, I’ve got various doubts concerning it’s application, since the detail is not enough, nor is the wording crystal clear nor exhaustive.

i.e.1. I figure businesses will be able to accept crypto as a means of payment, but will not be forced to do so, even more so when crypto is not delimited to any named list (BTC, ETH, etc.). I can´t imagine it being mandatory to accept any type of crypto, so I figure, for now, that it optional, and at the merchant’s discretion if and what he accepts.

i.e.2. There is no mention to P2P TXs, so I figure you could purchase a car from a dealer in crypto, but not from your neighbour.

Edit (*): The proposed law may perhaps apply to P2P too. The wording is not that great, and there are slight differences in Spanish from different countries that make matters more difficult to interpret. The phrase used "en cualquier
negocio jurídico" could perhaps be interpreted as aplying to P2P too, as I was pointed out on my local board.

dothebeats

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It appears that most of those who embrace the possibilities of using crypto in a broader sense than what is currently available are those countries that experienced some sort of economic instability in the past or in the present. That explains a lot considering that even lawmakers and those people whom we are expecting to go against crypto legislation are the ones actually pushing things to get the momentum started. Uruguay isn't really a poor country per se, but to see that it is pushing for something most developed countries haven't really looked deeper into is really fascinating. It may be a long stretch to have bitcoin approved as legal tender on a country that has a functional economy and very high quality of life, but it's still great that some minds have already been thinking of bitcoin even though they don't necessarily need it.

uneng

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Quote from: Vishnu.Reang on August 05, 2021, 03:49:07 AM

Quote from: uneng on August 04, 2021, 09:08:53 PM

I think nothing of that was needed. It just creates more difficulties for who wants to invest and work with crypto currency. So far, crypto universe has been a great place to be because it is accessible and easy to be introduced, especially due to not being legal tender. Look how absurd is that proposal of being necessary to have the government's permission to start mining crypto currency.
Those who have been here since the beginning should be proud of being part of such a wonderful age of crypto currency. Because now things are just going to get worse and worse with growing governmental influence and regulations that don't respect the individuals and their appeal for less bureaucracy.

I don't understand. The proposal was to remove obstacles and not to create them. If Bitcoin is recognized as a legal tender, then it will make the lives of cryptocurrency users much more easier. They don't need to pay capital gains tax on profits from Bitcoin, since it will be considered as a currency (rather than an asset). Making payments with Bitcoin will get easier, if it is recognized as legal tender. On the other hand, in countries such as the United States, it is extremely difficult to deal with cryptocurrency. Since it is recognized as an asset, every transaction needs to be reported in the income tax return, with all the details. It can be really tedious.

The governments want to make people believe regulations will make crypto currency users' lives easier, but it's just propaganda. I can't say for now if there will be less taxes if bitcoin was considered currency instead of asset by authorities, because less taxes is never the goal of governments. They always find a gap to introduce something new that you must pay, justifying it is for your own good.
For bitcoin, neutral/gray area was the best moment in history, when people could deal with it without any complications and government's intromission like the ones blatantly seen in USA right now. And I believe the difficulties faced in USA aren't due to the lack of regulations, but the introduction of abusive ones.

Since it was created, bitcoin has been working fine as currency or investment, and even in case of criminal activities people behind these acts could be tracked without any current regulations, so why to change something that was doing well already?

avikz

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This kind of new actually excites me more than the news of a random company buying millions of dollars worth of bitcoin. Because if a country legalises the bitcoin, that will bring granular level adoption by the mass. That's exactly what we want. That exactly what Mr. Nakamoto would have wanted. Bitcoin is not an asset to sit at a corporate coffer. Rather it needs to sit in a layman's wallets.

I understand this is just a proposal and not a bill yet. But even that baby steps matter. We need to remember that a simple ripple has the power to become a tornado. Let's wait for that day!

SquirrelJulietGarden

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From a proposal to a real approval is far but it give us hope that there will be more nations consider Bitcoin or crypto as legal tender. Uruguay is a bigger nation than El Salvador.

It takes three years from 2017 to 2020 to bring big institutions to crypto market and I hope that after Bitcoin goes to mainstream in the last two years, the process toward legal tender will be achieved in less than three years. Perhaps in 2022, we will see something big with legal tender for crypto globally.

It will not be a rosy journey and there will be many challenges from governments before cryptocurrency can be treated as legal tender on bigger scale, globally.

dkbit98

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Go Uruguay go!
I won't be happy about this news until I see this confirmed, but if this bill comes true than Uruguay will be the second Bitcoin domino that will create cascade of events around the world, all starting from South and Latin America.
Bitcoin Miners in Uruguay would still need a special permit from government but it's not as bad as in other countries like China that banned mining totally.
I am expecting that we are going to see political parties with some people complaining about this bill, in similar way like they did in El Salvador recently, I guess some people just love fiat currency more than Bitcoin.

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Either way, if this legislation passes the Uruguayan Senat, it will be great news for the crypto community and another bullish sign. As other countries in the region follow suit, I hope.
It looks like the whole of South America could become a crypto haven. Grin

DapanasFruit

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My special commendation to the leaders of Uruguay for recognizing a very good opportunity presented by Bitcoin and cryptocurrency where they as a nation can take a special part of. I am expecting that this bill if approved can paved the way for Bitcoin and cryptocurrency mining operations to be legalized in the country, including cryptocurrency exchanges and related businesses that can be headquartered or based in Uruguay. This is not a big nation in terms of population and economy but they can now make it a big part in the cryptocurrency map ahead of other big countries. I am sure that CZ of Binance would be happy to make a big operation in Uruguay.

Kiley33

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There are many good news about cryptocurrency recently:

Google started accepting Bitcoin ads
Uruguayan legislators propose bill to treat cryptocurrency as legal tender

I think other countries will follow suit soon. But in this case, some new laws and regulations may be issued to regulate people's use of Bitcoin, because the government does not want people to be out of control. But the advantages outweigh the disadvantages.
The good news these days should make the price of Bitcoin fluctuate.

Vishnu.Reang

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Quote from: uneng on August 04, 2021, 09:08:53 PM

I think nothing of that was needed. It just creates more difficulties for who wants to invest and work with crypto currency. So far, crypto universe has been a great place to be because it is accessible and easy to be introduced, especially due to not being legal tender. Look how absurd is that proposal of being necessary to have the government's permission to start mining crypto currency.
Those who have been here since the beginning should be proud of being part of such a wonderful age of crypto currency. Because now things are just going to get worse and worse with growing governmental influence and regulations that don't respect the individuals and their appeal for less bureaucracy.

I don't understand. The proposal was to remove obstacles and not to create them. If Bitcoin is recognized as a legal tender, then it will make the lives of cryptocurrency users much more easier. They don't need to pay capital gains tax on profits from Bitcoin, since it will be considered as a currency (rather than an asset). Making payments with Bitcoin will get easier, if it is recognized as legal tender. On the other hand, in countries such as the United States, it is extremely difficult to deal with cryptocurrency. Since it is recognized as an asset, every transaction needs to be reported in the income tax return, with all the details. It can be really tedious.

masterrex

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It's another good news, from the South American country, and if it was successfully crafted into law, l am sure many countries in the region will follow, it was started by El Salvador now it was copied by several countries in the region.
IMO, I believe that there is no problem if the crypto industry will be regulated for me it is better compared to banning the entire crypto industry like what is happening in some countries particularly China. So let us hope that the resolution will be successful for the betterment of this industry.

Cindella

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Cryptocurrency has solved many problems for many developing countries. They are aware of the positive impact and changes that El Salvador has made of Bitcoin as a legal currency, and the proposed bill hopes to be an economic revolution for the country and contribute to the country's economic development. Cryptocurrency is the perfect system to protect them from the devaluation of local currencies.

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