A bill to legalize Bitcoin in Costa Rica

A Costa Rican congresswoman has introduced a bill to legalize Bitcoin as a means of payment. The bill presents several innovations that could boost the crypto sector in this Latin American country. If the bill were to pass, the country would be the third in the world to legalize Bitcoin after El Salvador and the Central African Republic.

Costa Rica on the tracks of El Salvador

Costa Rica is clearly following in El Salvador’s footsteps when it comes to the legalization of Bitcoin. Johana Obando, a member of parliament from the Costa Rican Liberal Party, has submitted a bill to Parliament to legalize bitcoin as a means of payment.

Registered as number 23,415, the bill could attract more investors and boost the development of the payment, the deputy hopes.

The bill states that with the establishment of a framework of legality and legal security, cryptocurrency providers can invest in Costa Rica and with that generate jobs and development in the country.

Johanna Obando

In a series of tweets, Congresswoman Johana explains the main innovations of the project. The text recognizes virtual private property, legalizes transfers with cryptocurrencies in Costa Rica, guarantees the interoperability of banks with cryptocurrencies in the country and promotes economic recovery through the decentralization of the digital economy.

If it were to pass, this law would put Costa Rica at the forefront of crypto adoption. It would also make the country the third to legalize Bitcoin in the world after El Salvador and the Central African Republic. However, the congresswoman insists that her proposal is different from the Bitcoin law in El Salvador. Indeed, the law that Johanna carries does not oblige the state to use the country’s monetary reserves to acquire Bitcoins. This is not the case in El Salvador.

Le Salvador inspire petit à petit L’Amérique Latine

Since the legalization of Bitcoin in El Salvador, several Latin American states have opened up to the cryptocurrency sector.

Beyond Costa Rica, which is looking to legalize Bitcoin, Panama is also opening up to crypto. The country has begun a regulatory process that could promote the adoption of cryptocurrency. In neighboring Brazil, cryptocurrency adoption is exploding with both businesses and individuals. In Argentina, crypto use is growing, including within government services. In Paraguay, the Senate is fighting to pass a pro-crypto law despite opposition from the head of state.

It is true that this attraction to cryptocurrency is not only due to the influence of El Salvador. The high inflation that is plaguing several Latin American countries has something to do with it. But, this is an indicator that Bitcoin has not killed El Salvador’s economy as Nayib Bukele reminded. If Bitcoin was as bad for Salvadorans as some institutions say, its neighboring states would not be so invested in its adoption.

The legalization of Bitcoin could attract more investors to Costa Rica but not only. With its beautiful beaches and paradisiacal landscapes, Costa Rica is undoubtedly a tourist gem. The tourism sector could also grow with the legalization of Bitcoin. El Salvador sets a perfect example in this regard. After the legalization of Bitcoin, tourism revenues increased by …. 52% according to Bukele.