Ukraine could soon become the second country to adopt Bitcoin as legal tender
El Salvador is the first country to use Bitcoin as legal tender, and there already are a few other countries that intend to adopt a similar path. Paraguay could be the next country to follow El Salvador’s example, while Argentina, Brazil and Panama also seem interested in at least creating a favorable legal framework for cryptocurrencies. Notice that all these countries are from Latin America, but there actually are other regions of the world preparing for the cryptocurrency revolution. Ukraine, for instance, recently passed a bill that legalizes and regulates Bitcoin. This bill was drafted almost a year ago and gained the support of 276 out of the country’s 282 lawmakers.
Nasdaq.com notes that the Ukrainian population appears to be dissatisfied with the current monetary system that relies on the hryvnia fiat currency, so a digital currency overhaul could help revitalize the economy. Ukraine certainly looks like an ideal place for clean and sustainable Bitcoin mining, since the country is producing almost half of its electric power needs through 15 nuclear reactors. These can easily be expanded to support Bitcoin mining, and the Ukrainian government could become a strong support node for the whole mining network. If holding is not an option for the Ukrainian government, it can easily sell the mined Bitcoin in order to boost the national GDP. Furthermore, as an ex-soviet country, Ukraine is also looking to distance itself from Russia’s overreaching influences, so it is now trying to obtain the needed nuclear fuels from non-Russian sources like the U.S.
Ukraine’s President Volodymyr Zelensky recently met with IT industry specialists in Silicon Valley to forge a path for Bitcoin adoption, which should happen sooner rather than later, as Bitcoin seems to offer great incentives for early adopters, as well as put an end to the constant inflation. Of course, the transition to a fully digitized economy would not happen overnight. Ukraine would still rely on its fiat currency for some time, but the government would combine this with a strong Bitcoin treasury reserve and an extensive plan to mine Bitcoin via nuclear power.
We might soon see a race for Bitcoin adoption among many developing countries as governments start to understand the true benefits that Bitcoin brings to a global digitized economy.