The arrival of bitcoin (BTC) to Central America as legal tender by the hand of El Salvador, after the enactment of a law that allows the use of cryptocurrency in the economy of that nation, has made nearby countries such as Costa Rica expose their positions on crypto assets.
In that sense, Rodrigo Cubero, president of the Central Bank of Costa Rica, issued a document called “Some considerations around digital currencies and crypto assets.” Among other things, it ensures that the Ministry of Finance of that country, does not see viable the use of cryptocurrencies for the payment of tax obligations, according to the current legal system.
To reinforce the idea of the Ministry, Cubero considers that it would not be “desirable” either, for financial and fiscal reasons, due to the “high volatility shown by the value of crypto assets, compared to legal tender”.
The Costa Rican official also stated that volatility represents a “strong inconvenience” for the use of cryptocurrencies as a unit of account; that is, to express the price of goods and services.
However, Cubero explains that the use of bitcoin is allowed in his country, even if it does not represent legal tender. Anyone wishing to acquire crypto assets does so at their own risk.
Costa Rican government on bitcoin: “a vigilant tolerance”
In addition, he warned that people who use cryptocurrencies, do not have the support of the Central Bank nor are they covered by guarantee mechanisms. In short, the authorities show tolerant of the existence and circulation of cryptocurrencies. They also support technological innovation to allow the emergence of the Fintech industry.
“THE CENTRAL BANKS APPROACH IS THUS ONE OF VIGILANT TOLERANCE: THE EXISTENCE AND CIRCULATION OF CRYPTO ASSETS IS TOLERATED, AND SPACE IS GIVEN FOR TECHNOLOGICAL INNOVATION TO ALLOW THE EMERGENCE OF THE FINTECH INDUSTRY. (…) REGULATION WILL BE INTRODUCED WHEN NECESSARY. FOR EXAMPLE, UNDER THE COORDINATION OF THE COSTA RICAN INSTITUTE ON DRUGS (ICD) AND WITH THE PARTICIPATION OF THE REGULATORY AND SUPERVISORY AUTHORITIES OF THE FINANCIAL SYSTEM, A BILL IS BEING PREPARED TO COMPLY WITH THE 9 REQUIREMENTS OF THE FATF IN THE FIGHT AGAINST DRUG ABUSE. MONEY LAUNDERING AND TERRORIST FINANCING ”.
Position on the adoption of bitcoin in El Salvador
The president of the Costa Rican financial body also spoke about the Bitcoin Law of El Salvador, promulgated last June and which recognizes bitcoin as legal tender in the country, making that country one of the first countries in the world. in recognizing bitcoin as money.
About, Cubero expressed that he agrees with the recommendations made by the International Monetary Fund and other organizations, considering that “careful prudential and fiscal regulation will be required” in El Salvador.
At the time, CriptoNoticias reported that Gerry Rice, a spokesman for the IMF, indicated that the adoption of bitcoin posed in the Central American country represented “a series of macroeconomic, financial and legal problems.”
The CDBC in Costa Rica
In the document, Cubero also spoke about central bank digital currencies (CBDC) and assured that the issue has been studied in his country, concluding that it is not necessary to dabble in the launch of a digital currency.
The official maintains that in Costa Rica there is already financial inclusion and the provision of safe, agile and low-cost digital payments under the National Electronic Payment System (Sinpe). In other words, the main potential benefits of a CBDC have already been achieved centrally, says Cubero.
Although they do not rule out that, in the future, if necessary they can launch a central bank digital currency. According to the official, they already have a technological platform on which to base this financial instrument.