Andorra has announced a new digital asset act that signals a green light toward using crypto and blockchain across the country. This is an incredible feat for a small country between European giants France and Spain. The new framework will seek to guide the activities and usage of assets such as Bitcoin and blockchain technology, according to a statement by the country’s government.
Andorra wants to attract crypto start-ups
According to the report, the new digital asset act consists of two phases, with the first overseeing the creation of a digital currency. The country wants to create a digital fiat currency that can be used as a medium of exchange between two entities. If this update kicks into effect, Andorra would be able to develop and use its digital currency for transactions inside the country.
The second aspect of the act will seek to establish a regulatory framework for digital assets. This framework will regard the assets as financial assets, which will, in turn, enable the government to subject them to rules and regulations. According to several parties, including the CEO of 21 million, a local crypto exchange in the country, the new initiative will invite new business owners into the country, which would signal more development.
Analysts thumb up the initiative
In the view of several parties in the country, the government wants to clarify its stance on digital assets and blockchain to attract businesses that could bring profits into the country. Presently, Andorra is yet to make digital assets a legal tender, and the new update is not yet seeking to tackle that aspect for now. For traders to exchange, they must use digital asset-backed with the euro. This has not stopped analysts from making their case for the need to introduce Bitcoin into the country.
In one of his posts, the avid CEO of 21 million mentioned the key steps the country can take to become a big supporter of Bitcoin. A local paper has also mentioned the new act, mentioning that it is a step in the right direction to enable crypto usage in daily transactions. Andorra is one of the best countries across Europe for setting up a crypto business due to its favorable taxing. Although Switzerland still sits pretty at the top of the chain, analysts see Andorra making a case for its spot in the coming years.