Entrepreneurs release first cryptocurrency for Costa Rican context

Contxto – Some countries are taking the initiative in developing their own cryptocurrencies. Perhaps Latin America’s best-known case is the Venezuelan Petro. However entrepreneurs in Costa Rica are also taking a step forward.

On January 20, a cryptocurrency based on the country’s own ecosystem of digital assets was released into the world and christened as CRCoin.

At the head of these efforts is Blockchain Costa Rica.

There are already 40 businesses that have already signed up to accept CRCoins as payment. And perhaps its biggest selling point is the fact that payments via CRCoins are instant. Meaning people don’t have to wait until the next business day, for example, to see the asset land into their bank account.

Costa Rica’s curious crypto-case

In this Central American country, cryptocurrencies aren’t outlawed and in fact are acknowledged as a legitimate means of payment.

For example, according to the country’s work code, people are entitled to receive a part of their wages in cryptocurrencies. In addition, the country is investing resources into the development of blockchain technology which could bring about greater acceptance of cryptos in the long term.

Not to mention that Costa Rica is highly vested in generating renewable energy. This is important considering that bitcoin mining operations tend to concentrate where they can tap into a steady renewable energy supply, according to one study.

But there are other factors to consider.

First there’s the fact that the Central Bank doesn’t recognize cryptos which technically means it’s not an official currency. Moreover, the fiscal regulation of these assets is also blurry.

But I do think that given the size of the country, its interest in blockchain, and potential for gathering renewable energy to feed crypto mining, can prove a potent mix for greater adoption of digital assets in the long term.

Related articles: Tech and startups in Central America!

-ML