According to crypto industry entrepreneurs, an examination of Andorra’s Digital Assets Act and the possible uncertainty around Bitcoin, blockchain, and cryptocurrencies.
Andorra, a little European nation wedged between France and Spain, is a model of growth. The country’s government, the General Council of Andorra, has just passed the Digital Assets Act, a framework for regulating digital currencies and blockchain technology.
The legislation is divided into two sections. The first relates to the establishment of digital currency, or “programmable digital sovereign money,” which may be traded inside a closed system. This would enable the Andorran government to issue its own token.
The second section of the legislation refers to digital assets as financial instruments and aims to provide a regulatory framework for blockchain and distributed ledger technology.
Note that cryptocurrencies and digital currencies are not legal currencies in Andorra, and the Digital Assets Act does not propose any changes to the monetary system. This permission is reserved only for the euro, the chosen currency of the European Central Bank. Paul, an active Bitcoin user, continues to advocate for Bitcoin (BTC) acceptance in Andorra:
Paul emphasised in a blog post that Andorra may embrace a Bitcoin standard, mining Bitcoin using renewable energy, adopting Bitcoin as a reserve asset, and embracing Bitcoin-centric businesses from across the globe.
According to the national newspaper Diari d’Andorra, the Digital Assets Act is a step toward “making cryptocurrency a daily reality.” Paul said that, from a commercial standpoint, the extent of “crypto-friendliness” depends on the activity.
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