SHOULD DEVELOPING COUNTRIES ADOPT CRYPTOCURRENCY AS A LEGAL TENDER? LÊ TRẦN TRÚC MAI 21000508 10/04/2022 Mr.Ryan Gabriel 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 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 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 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 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 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 REFERENCE LIST Aziz, A T I F (2019) Cryptocurrency: Evolution & legal dimension International Journal of Business, Economics, and Law, 18(4), 31-33 Luchkin, A G., Lukasheva, O L., Novikova, N E., Melnikov, V A., Zyatkova, A V., & 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 Proceedings of the Russian Conference on Digital Economy and Knowledge Management (RuDEcK (No 2020, p 423) Pravdiuk, M (2021) International experience of cryptocurrency regulation Norwegian Journal of Development of the International Science, (53-2), 31-37 Prayogo, G (2018) Bitcoin, regulation, and the importance of national legal reform Asian Journal of Law and Jurisprudence, 1(1), Lansky, J (2018) Possible state approaches Integration, 9(1), cryptocurrencies Journal of Systems ... 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... 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,... 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