The Ukrainian Parliament has approved legislation that legalizes and controls bitcoin in the nation, which passed today. The measure, written in 2020, was approved, with 276 legislators voting in favor of it and just six against it. The primary goal of this legislation seems to be to give clarity on the asset and to safeguard individuals who possess bitcoin since the purchase was previously neither legal nor unlawful in the nation at the time of passage. According to the Kyiv Post, even though bitcoin and other virtual currencies are not illegal, Ukrainian law enforcement authorities regarded bitcoin and other virtual currencies as fraud, leading to the raiding of bitcoin companies. And before we move further into the guide, we would like you to register yourself on the https://bitcoin-profitapp.com/ platform and learn more about trading in digital currency.
Because it offers tax certainty and legally enables bitcoin companies to operate inside the nation, the courts will be able to adequately safeguard people and businesses now that the law is approved. It also provides clarification on how bitcoin businesses will be taxed. It also establishes some parameters for how Ukraine may attempt to regulate bitcoin in the future further. In addition, the law clarifies what wallets are and what private keys are.
Note that even if bitcoin is now legal in Ukraine, this does not imply that BTC accepts as a legal currency in the nation, which is essential to understand. And to make that happen in the future, it will be necessary to pass a whole separate law.
Great news, and it’s certainly a step in the right way toward the nation ultimately adopting a full-fledged bitcoin standard, similar to what El Salvador has implemented. The essential thing to remember about bitcoin is that, for it to flourish in a nation ultimately, it is critical not to suffocate it with too many rules or restrictions, which would eventually stifle creativity. Bitcoin is still in its infancy and seems to be on its path to become the world’s reserve currency; it would be a pity if nations could not take advantage of the present opportunity due to excessive regulation.
Edward Snowden: The Theory of The Global Bitcoin Game Will Begin to Play Out Soon
The game-theoretic aspect of Bitcoin adoption may soon begin to play out in the world’s geopolitical landscape. Yesterday, famous whistleblower Edward Snowden pointed out that Bitcoin benefits those who embrace it early, putting pressure on other countries punished for being laggards. Bitcoin was officially accepted as legal currency in its first nation today, according to a tweet from Edward Snowden on September 7.
One of Snowden’s tweets cited another from Aaron van Wirdum, the editor-in-chief of Bitcoin Magazine, who is presently in El Salvador and stated that the journalist would pay for his McDonald’s breakfast with bitcoin via the Lightning Network. The Central American nation’s formal adoption of bitcoin as legal money, Van Wirdum said, gave him the idea of trying to buy everyday items from a popular, worldwide chain once the cryptocurrency became legal tender in the country.
Van Wirdum wrote on Twitter that McDonald’s printed a ticket with a QR [code] that took him to a webpage with a Lightning invoice and that he was currently eating his Desayuno tradition. “But lo and behold, [McDonald’s] printed a ticket with QR [code] that took me to a webpage with a Lightning invoice, and now I’m enjoying my Desayuno traditional,” he wrote. The constant rise in buying power of a fledgling form of money, compared to well-established monetary commodities that occur as its acceptance in society grows, is a natural feature. Accepting a new currency is inversely proportional to its capacity to assume diverse and more realistic use cases. Unaccepted monetary goods have limited power and, as a result, lack the qualities of fully-fledged money, as do generally accepted economic goods.
To be sure, as more people come to accept and utilize the new monetary commodity, it gradually gains acceptance and acceptance as a store of value, first as a medium of exchange, and ultimately as a unit of account.
In its early days, Bitcoin was seen mainly by the general public as a gimmicky collectible. Still, in recent years, the narrative has shifted to include applications such as a store of value and digital gold storage. On the other hand, El Salvador is already assisting Bitcoin in its transition from the store of value use case to the medium of exchange use case by recognizing it as legal currency in the country.
Over time, when the Salvadoran population and the country’s economy begin to reap the benefits of Bitcoin’s increasing buying power as a store of value and begin to demonstrate actual use as a medium of exchange, game theory predicts that other nations will follow in their footsteps. As a result of the fear of being left behind and the apparent opportunity cost, competitive countries will be under increasing pressure to either hold Bitcoin as a reserve asset or to accept it as a legal tender in its entirety.
It is unknown where Bitcoin is in the adoption cycle; nevertheless, it is evident that the overwhelming majority of the globe does not comprehend or utilize Bitcoin at this time. As a result of El Salvador’s successful implementation, the likelihood of Bitcoin acceptance skyrocketing increases as other countries, afraid of being left behind, follow suit and enact similar measures. “Later arrivals may come to regret their hesitation,” Snowden ended in his post.