Andorra green lights Bitcoin and Blockchain with Digital Assets Act

Andorra green lights Bitcoin and Blockchain with Digital Assets Act

Andorra is a small European country between Spain and France that has seen a little bit of progress. The Digital Assets Act was approved by the General Council of Andorra recently. It is a framework that regulates digital currencies and blockchain technology.

This act can be divided into two parts. The first is about the creation of digital currency, also known as “programmable digital sovereign cash”, which can be traded in a closed market. This would allow Andorran to create its own token.

The act’s second half refers to digital assets and financial instruments. It aims to create a regulatory environment for blockchain and distributed ledger technology. Paul, who withheld his name, is the CEO of 21Million, a local Bitcoin company. The new law could bring new business. Cointelegraph spoke with him:

“The goal they are trying to achieve is to attract new businesses to the country by providing legal clarity that makes it simpler and more transparent. This is a way to attract entrepreneurs and talent to the new economy.

It is important to note that digital currencies and cryptocurrencies are not legal tender for Andorra. The Digital Assets Act does not make any proposals regarding exchange. This privilege is reserved only for the preferred currency, the euro, by the European Central Bank. Paul, a passionate Bitcoiner, has not been stopped from advocating for Bitcoin adoption in Andorra.

This one has been in the works for quite some time, but I finally decided to share it! Here is the case I made for bitcoin adoption in Andorra https://t.co/xHxl78YChO
— Paul ADW (@PaulADW), July 14, 2022

Paul wrote a blog post highlighting the possibility that Andorra could adopt Bitcoin standards, mining Bitcoin using renewable energy, and accepting Bitcoin-centric businesses from around the globe.

National newspaper Diari d’Andorra reported that the Digital Assets Act is a step toward “making cryptocurrencies a day-to-day reality.” From a business perspective, Paul said that the level of “crypto-friendliness” depends on the activity.

“I know someone who owns a mining company here. It’s no problem. Electricity is also cheap. Financial consulting is possible. It’s very friendly and has a low tax rate. It could be difficult to find a bank willing to work with you if you want to manage an exchange. The government would not mind.

Jordi Galardo, Andorran Minister for Economy and Enterprise, stated that blockchain was a top area of investment in the country. It is unclear if the minister was referring to Bitcoin, the world’s most prominent blockchain, or research into distributed ledger technology that underpins blockchains.

There are many questions about Bitcoin, Blockchain and Crypto in Andorra. Source: Shutterstock

Josselin Tonnellier is the co-founder and CEO of StackinSat. He said that there is confusion about crypto, blockchain, nonfungible tokens, and Bitcoin. Surfin’ Bitcoin is a major European Bitcoin conference hosted by StackinSat in Biarritz (France), just outside Andorra.

Paul, a frequent attendee at Surfin’ Bitcoin confirms that the sentiment and confusion in Andorra remain the same: “The regulator does not make any distinction between crypto and bitcoin. They haven’t been “orange-pilled” yet. To take the orange pills is Bitcoin parlance. This refers to when someone who is new to Bitcoin starts to understand the fundamentals of the seminal cryptocurrency.

If you like surfing and Bitcoin, we have the perfect event for you : @SurfinBitcoin pic.twitter.com/zGHrhZIie6
— Joss Tonn (@Joss_do_it_BTC) June 18, 2022

Tonnellier stressed that digital currencies and technology awareness is increasing, but there are risks of losing your money and being scammed without the right education tools and frameworks.

According to KPMG’s recent report, more French people are exposed to crypto than the stock market […] France has been known to be a hotbed for’shitcoinery’.

There is no “shitcoin” classification system, but such coins are tokens that are not Bitcoin. According to their proponents, they are at high risk of falling to zero. Squid Game Token was the most talked about shitcoin of 2021.

Tonnellier, back in Andorra explained that technology such as Bitcoin is the best way for the country to run. “Andorra has been outside the European Parliament’s jurisdiction.” In many ways, it could be compared to Switzerland, but on a smaller scale.

“Andorra is attractive to entrepreneurs due to its low tax. But Switzerland has a huge head start in promoting activities around Bitcoin and other cryptocurrencies. This text of laws that frames Bitcoin and blockchain activities could make this a reality in the future.

Related: French central bank chief announces Phase 2 for the wholesale digital euro project

Andorra has a land area of less than 500 km2. Contrary to popular belief Andorra does not have a tax haven. The micro-state ended banking secrecy in 2018 and has since renounced it. However, taxes are significantly lower than in Spain or France, and financial services make up as much as 20% of the economy.

Andorra or Switzerland? Source: Kokono.com

Although it is not clear which digital assets the government will regulate through the Digital Assets Act (the Digital Assets Act), the economically motivated movement could help diversify Andorran economies and welcome crypto- and blockchain-based businesses. Paul believes it is a step closer towards Andorra adopting Bitcoin.

2021's Most Anticipated Growth & Wealth-Building Opportunity

Join Thousands of Early Adopters Just Like You Who Want to Grow Capital and Truly Understand Cryptocurrency Together

Amy Jimenez

Amy Jimenez– Services My name is Amy Jimenez, and I am the main writer behind the" allthetopnews.com" for the ground-breaking and most fragile bits of knowledge into the most recent news in the services sector. I began my voyage of work as an autonomous investment advisor. I had around 4 years of involvement in this field. I am a free soul so; my energy for investigating the world has taken me to the countries over the globe and allowed me to report for a part of the best news affiliations. At present, I am a full-time manager as experienced in the account and began to utilize my capacities.

2021's Most Anticipated Growth & Wealth-Building Opportunity

Join Thousands of Early Adopters Just Like You Who Want to Grow Capital and Truly Understand Cryptocurrency Together

Close Bitnami banner
Bitnami