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Costa Rica could follow Bitcoin Adoption in Latin America

Frog from Costa Rica

Costa Rica could follow BTC Adoption in LatAm (Pic by Zdeněk Macháček, @zmachacek on Unsplash)

Costa Rica has a domestic regulation that allows using cryptocurrencies without any limitations.

The country could follow Bitcoin Adoption in Latin America. Costa Rica is one of the few countries in Latin America with one of the most open regulations on using Bitcoin and cryptocurrencies. According to a recent study, the public opinion points out that the country has lagged behind other countries in adopting Bitcoin. 

The study, conducted by the marketing agency Sherlock Communications and presented at the end of September, explores the entire cryptocurrency ecosystem in Latin America. For the case of Costa Rica, the agency surveyed mid-August of this year to determine what Costa Ricans think about adopting Bitcoin and following the example of El Salvador. They already approved the Bitcoin Law last June.

The study highlights that Costa Rica openly accepts using Bitcoin and cryptocurrencies, based on article 166 of the labor code. It establishes that Costa Ricans can use commonly accepted goods for payment, including crypto assets. 

The Central Bank of Costa Rica, as cited by the Sherlock Communications study, does not have a direct regulation on the use of cryptocurrencies. Since 2017, they issued a statement establishing that using cryptocurrencies will be at the citizens’ own risk. 

According to the study, about 30% of the country’s population considers lagging behind other countries. In comparison, 12% felt that cryptocurrencies do not have much of a future in Costa Rica.

 

Survey results about Bitcoin sentiment in Costa Rica (Source: Sherlock Communications)

 

Another exciting fact cited by the research is that several businesses accept crypto in Costa Rica as payment. Several Bitcoin ATMs are also in operation in the country, showing that the population already has slight contact with cryptocurrencies.

 

Bitcoin mining with renewable energies, an option in Costa Rica

In recent days, El Salvador started its bitcoin mining industry, powered by geothermal energy from volcanoes. Geothermal energy sources would mean an ecological mining model with no carbon footprint. 

The Sherlock Communications study highlights that 90% of all energy produced in Costa Rica comes from renewable sources. According to other sources, current volumes will reach 99% of the total in 2021. A fraction of which, like El Salvador, comes from geothermal energy.

It could incentivize miners to aim at more environmentally friendly and profitable mining in the future. Considering that Costa Rica is in the middle of the table for electricity consumption costs among all Latin American countries.

 

The Bitcoin ecosystem in Costa Rica

Sherlock Communications mentions Costa Rica has adopted Bitcoin and cryptocurrencies “extremely quickly.” Adoption is a growing market within which different projects have been born, such as the Tico Blockchain conference, which brings together personalities from the Bitcoin and cryptocurrency fields. 

Cambiatus, a platform based on Bitcoin technology, which allows the creation of personalized tokens, has helped promote “ecological awareness” through incentives paid directly in cryptocurrencies, thus boosting the local economy. 

Costa Rica could become the next El Salvador, thanks to its openness to cryptocurrencies and the good ecosystem currently in the country. It is up to the regulators, who have the last word on whether to accept bitcoin as legal tender in Costa Rica or keep it as another payment method.

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