Microsoft word individual essay lê trần trúc mai AEn T122WSB 6 21000508

SHOULD DEVELOPING COUNTRIES ADOPT CRYPTOCURRENCY AS A LEGAL
TENDER?
LÊ TRẦN TRÚC MAI
21000508
10/04/2022
Mr.Ryan Gabriel

1


Throughout worldly history, money has completely altered. As the trade of commodities and
services got increasingly complicated, money developed to accommodate these problems. As the
physical form of currency shifted from gold and silverware to intrinsic coinage and, eventually,
paper plutocrats, so did its legal dimension. From being only necessary to the sanctioned money
with the sovereign or state's seal, thereby providing it legal validity. Independent countries
gradually monopolized money distribution with the rise of central banks. Money's emergence
was foreseen as a result of the digital and internet revolutions. Bitcoin, the first successful
cryptocurrency, was a physical representation of financial innovation. There are currently around
2100 cryptocurrencies, with a total market worth of $ 230 billion. Nonetheless, the legal
development of cryptocurrencies has lagged, since it has been prohibited by a slew of nations,
while others struggle to grasp and develop systems. Cryptocurrency has several advantages, but a
slew of issues prevents it from being embraced by mainstream fiscal demands. As a result, the
actual developmental phase of cryptocurrency's legal dimension will be completed with its
demise as legal tender/ sanctioned money. Nonetheless, bitcoin is supported as a new sanctioned
money, not as an alternative to regular cash.

2


Contrary to edict plutocrats released by moderate banks/authorities, ccryptocurrency has had
limited success as a digital means of trade. It is a peer-to-peer (private) digital payment system in

which deals are recorded in a public ledger using its unit of account. One of the most notable
characteristics of cryptocurrencies is that it eliminates the necessity for a trusted thirdparty/central authority correspondent as a governmental tool. Unlike fiat currencies, where the
government/central authority regulates the force, the rate at which analogous units are issued is
established before and is intimately recognized. Cryptocurrencies are heralded as the greatest
invention of the century, yet they suffer from the same issues as traditional payment methods.
Bitcoin was the first virtual money with the characteristics of independence, obscurity, and
double-spending prevention. Bitcoin became a reality in 2009. Satoshi Nakomoto pioneered it.
Bitcoin accounts for about 60% of cryptocurrency request capitalization. Virtual currencies,
particularly Bitcoin, Ethereum, Litecoin’s, and Dogecoins, among others, and the
Blockchain/D.L. T that supports them, now enjoy widespread media coverage, owing to the
perception that they are the biggest disruptive technologies of the twenty-first century. They've
also come to light as a result of the allegations surrounding their alleged use of plutocrat
laundering and terrorist financing. Numerous angles are girding the actuality of virtual currencies
and their possible impact on profitable conditioning. The inventions cases girding virtual
currencies are still unravelling and are yet to repel the trial of time. Utmost authorities are in
delay and watch mode, neither explicitly banning nor explicitly feting these. Indeed, among the
authorities that have honoured virtual currencies fairly, there seems to be a lack of agreement in
treating them as means/ security/ currency.

3


The first feature of cryptocurrency is that it is seen as a trading platform; cryptocurrencies are
frequently accepted as payment for products and services. Despite their growing popularity,
bitcoins' utility as a means of exchange remains restricted. Paper currencies continue to be a
viable method of exchange since they are legal tender. However, if the cryptocurrency is issued
as legal tender/sanctioned money by an independent state, the issue of its inherent worth and
volatility will be resolved, making it a more appropriate method of exchange. Bitcoin, Ether,
Litecoin, and Monaro are prominent cryptocurrencies that assist certain people in developing
countries in escaping poverty. This is because bitcoin enables individuals to overcome

difficulties such as a lack of or apprehension about accessing financial services and a lack of
social trust. Furthermore, increasing fiscal addition and improving financial traceability allow
emerging countries to overcome the difficulties of the conservative fiscal system.

4


Second, because it is considered the unit of account, the client must be able to compare prices in
the unit of currency quantitatively. Because of the volatility of its value, Bitcoin is a dangerous
unit of account to utilize. As sanctioned legal money with consistent inherent value and no
financial transfer costs, cryptocurrency has the potential to become the preferred unit of account
in the future. Bitcoin's Demise in the Developing World The majority of people in third-world
nations regard Bitcoin as a powerful development instrument. This is because this virtual money
functions as a digital plutocrat through which individuals may transfer goods and services across
the internet. Even though many individuals in developing countries are impoverished, they can
access and utilize the internet. As a result, they may use their cell phones to connect to the
Bitcoin network.

5


Finally, the proprietor of a currency expects to store the currency and use it in the future while
the currency retains its profitable value. Traditional currencies are stored in banks and more
lately cryptocurrencies can be stored in digital holdalls. Although cryptocurrency is vulnerable to
affectation, unlike paper plutocrat, due to its unpredictability it isn't a favoured store of value, at
present. Still, as a legal tender, crypto will have lower insecurity. A currency that's affectation
resistant and is backed by a supreme state guarantee can make cryptocurrency a good store of
value. The European Union has expounded that the reactionary regulation of frugality doesn’t
apply to cryptocurrencies. The digital asset was defined as a convertible decentralized virtual
currency. A digital asset is more represented as an impalpable asset or commodity, rather than as

a currency or plutocrat, which contributes to its unchecked taxation. In addition, it's proposed to
introduce obligatory enrolment or licensing of the conditioning of cryptocurrency exchanges.
Conditioning related to cryptocurrencies is carried out by several departments that regulate it, at
the same time, the invariant determination of the status of digital means (cryptocurrencies) is not
worked out.

6


Historically, money is evolving its physical dimension into a new state, but its legal dimension
lags. In the digital age, cryptocurrency is a natural development of the currency. It is a quick,
efficient, and secure method of trade with significant cost savings. The existing faults of
cryptocurrencies, such as duty evasion, swindles, laundering, and, most crucially, volatility, can
be reduced by making them legal tender/sanctioned money. It's an idea whose time has arrived,
and the appropriate response should be to welcome rather than stifle the creation. As a result,
Bitcoin as a sanctioned currency issued by an independent state or a lucrative bloc will maximize
its application benefits and represent a step ahead in its legal development. Casting up, it should
be noted that the legal status of digital means in utmost countries of the world isn't defined,
indeed through digital means aren't honoured as legal tender, but are exchange means, they can
be used as a means of payment, a means of exchange, exchange and gift. In utmost countries,
measures are being taken to offset crimes committed with or against digital means. The being
legal frame in the field of cyberspace and fighting cybercrime doesn't completely meet
ultramodern conditions and requires the connection of the world community to borrow common
rules of the game both in the diurnal use of digital means and in fighting crimes with their
felonious development.

7


REFERENCE LIST

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Yarotskaya, E. V. (2020, August). Cryptocurrencies in the global financial system: problems and
ways to overcome them. In Advances in Economics, Business and Management Research.
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