Search

In 2021, El Salvador designated Bitcoin as legal tender within that country, payable for all debts, public and private. The move is novel in the realm of cryptocurrency regulation, but fits within a time-honoured battle over monetary policy with which every country engages. This piece examines the impacts of legal tender designations in these various areas and maps the current regulatory framework of cryptocurrency transactions, to argue that cryptocurrency's practical uses are decoupling states from monetary control and developing a transnational legal theory agnostic to concerns such as the legal tender question. It shows how the El Salvador regulation threatens to shift the dominant global economic regime towards a world wherein money may not be governed by states at all. The paper develops this transnational legal theory through mapping the US regulatory framework regarding cryptocurrency and examining the impact of the El Salvador regulation from a US point of view. [ABSTRACT FROM AUTHOR]

In Indonesia, Cryptocurrency, on the one hand, is not recognized as a legal tender, so it does not have a legal umbrella, and the risk of its use is borne by the user himself. On the other hand, cryptocurrencies are included in the list of commodities that can be used as the subject of Futures Contracts traded on the Futures Exchange because, from their use, it is expected to make a positive contribution to futures trading in Indonesia. These two contradictory things of cryptocurrency regulation are then faced with a phenomenon called cryptocurrency-based TPPU. This study uses a descriptive method combined with a qualitative approach. The data in this study is primary data sourced from the results of interviews and data from the Metro Jaya Police, and the secondary data used to support the research is literature in the form of books, research journals and online scientific journal data. The data that has been collected is analyzed by data reduction methods and triangulation techniques. The location of the research is the Metro Jaya Police and the University of Indonesia Library. From this study, it is known that in Indonesia, there are no special rules governing this cryptocurrency-based anti-corruption, and there has been no cooperation between law enforcement for its prevention. [ABSTRACT FROM AUTHOR]

Copyright of Zeitschrift für Bankrecht und Bankwirtschaft is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

When reading texts mentioning past currencies, especially those that were in use in Ottoman and British Palestine and the first decade of the State of Israel, historians often remain puzzled as to the relative value of former legal tenders in particular historical periods (i.e. what a specific sum of money could buy), and more so how to interpret the value of specific currencies between these and later periods. Such an interpretation is not only the interest of historians, because there is a practical need to verify sums in obsolete currencies, such as in agreements and laws, in today's money. Few experts are able to make even an inexact linkage from the Mandate period to present day Israel, while linkage from the Ottoman period remains too vague. The main aim of this article is to improve this situation by using applied history, to propose some rules of thumb for understanding the magnitude of such currencies, according to market values and/or laws, and to provide a provisional tool for linkage of former legal tenders – Ottoman Liras, Egyptian Pounds, British Pounds, Palestinian Pounds, Israeli Liras and old Shekels – to present monetary values. [ABSTRACT FROM AUTHOR]

This chapter examines the enigma of Sub-regional economic integration in the Communauté Economique et Monétaire de l’Afrique Central (CEMAC) zone. The sub-regional integration idea was born out of the need for a united Africa during the immediate independence period, to be achieved through a gradual, but steady process. Although instituted in 1994, CEMAC was a re-make of the Economic and Customs Union of Central Africa (UDEAC) created in 1964. CEMAC was established, to promote sub-regional integration among central African states that shared a common legal tender, the CFA franc, through the promotion of trade, a genuine common market and greater solidarity. Albeit recording some inroads, CEMAC lagged behind its objectives, due to tardiness and overall poor implementation of policies, limited technical capacity, divergent attitudes of member states towards integration and absence of sanctions against states that disrespect community norms. The chapter sustains that such diverse political, economic, and socio-cultural impediments could only be halted through a joint approach, for remedial renewal by all stakeholders for a truly integrated economic CEMAC sub-region. This investigation shall be based on secondary and primary data, interpreted qualitatively and presented thematically. [ABSTRACT FROM AUTHOR]

The article provides an overview of the history of cryptocurrency and the current taxation and regulatory framework for cryptocurrencies. It discusses the conflicting views of the SEC and the IRS on whether cryptocurrencies should be classified as securities or property. The article highlights the challenges and shortcomings of current tax policies regarding cryptocurrencies, including the lack of specialized tax rules and the inapplicability of certain provisions. It suggests that the IRS should create a new classification for cryptocurrencies and update its tax system to effectively tax them. However, due to the unique nature of cryptocurrencies, there may never be a perfect solution. [Extracted from the article]

This paper analyses the legal framework of national virtual currencies and so-called Central Bank Digital Currencies (CBDCs) from a comparative law perspective. The authors define the meaning of the terms “means of payment” and “legal tender” and determine the legal consequences of classifying certain means of payment as legal tender. Building on this, the authors present new developments in the field of sovereign virtual currencies and shed light on their evolution through a comparative legal analysis of various national virtual currencies. In this context, the authors present developments in various African countries, Venezuela’s initiative to introduce the first state-backed crypto token, the first CBDC pilot projects in Uruguay and China, and considerations to introduce a CBDC in the EU. Based on the analyzed systems, problems regarding privacy, user protection and effective regulation of transactions are highlighted in order to present the legal challenges for the establishment of a fully functional (supra-)national euro CBDC.

In the 17-18th century, during the process of civil transformations, starting from the economic policy based on the era of absolutism, the first central bank regulations appeared in Europe. Mainly the disorganization and crisis of public finances and the need to finance various wars led governments to establish central banks and to provide central banking functions to privately owned banks. The most important issues included the regulation of banknote issuance and legal tender, the management of state funds, the financing of the state debt, as well as the relationship with the state, in other words, the content of central bank independence. Each country followed different paths, and accordingly, the classic and the Prussian models of central bank development can be described based on the different legislative steps. The study presents the main characteristics through the English, German, French, American and Hungarian examples, primarily by characterizing the legislative peculiarities and illuminating the political historical background by applying the methods of comparative law. [ABSTRACT FROM AUTHOR]

On 25 October 2021, Nigeria became the second country in the world, and the first in Africa, to launch a central bank digital currency. Launched with the tag line "Same Naira. More possibilities", the Central Bank of Nigeria publicized the eNaira as having the capability to deepen financial inclusion, reduce the cost of financial transactions and support a more efficient payment system. However, more than one year after its launch, its usage is yet to gain a critical mass. This article identifies the significant challenges that make the eNaira unacceptable and potentially ineffective. First, its status as legal tender is questionable; secondly, it undermines privacy, a critical component of physical cash. Thirdly, it is incapable of wide acceptance by individuals and entities across Nigeria. The article explains each of these challenges and proposes a roadmap to the eNaira's acceptance and effectiveness. [ABSTRACT FROM AUTHOR]

This article explores the concept of a universal currency, drawing parallels to the Roman Empire's banking system and its use of promissory notes. It discusses the collapse of the Roman imperial currency due to hyperinflation and political turmoil, comparing it to the challenges faced by Britain in the seventeenth and eighteenth centuries. The article highlights the fluctuating exchange rates and poor quality of coins in circulation during this time, contrasting it with the Roman Empire's successful management of its currency. It concludes by acknowledging the evolution of currency systems and the increasing reliance on digital transactions in the modern world. [Extracted from the article]

The growing economic influence of cryptocurrency and the development of the associated infrastructure has brought about an interest in the new areas of its application. Payment of compensation in cryptocurrency is one such evolving application of cryptocurrency. Using a qualitative research design, we attempt to identify the factors and ecosystem constituents that play an important role in the diffusion, adoption and use of cryptocurrency as a compensation medium. A hybrid methodology involving both inductive and deductive methods of qualitative inquiry was used to develop the themes. The study identified nine main factors that influenced a participant's decision to accept compensation in cryptocurrency. They are: (1) the prospects of high return; (2) ease of transaction; (3) faster international transactions; (4) price volatility of cryptocurrencies; (5) threat of hacking; (6) taxation policies of the country; (7) lack of recognition as legal tender; (8) influence of peer groups; and (9) influence of celebrities. The inductive part of the study enabled the mapping of the major stakeholders involved in the decision, namely, the government, the employer, the peer groups of the employee, celebrities and the cryptocurrency-issuing company. [ABSTRACT FROM AUTHOR]

The article examines three legal opinions recently issued by the ECB on national laws concerning cash acceptance and payments in the euro area. It analyses how the ECB ensures the Eurosystem Cash Strategy and the legal tender status of cash are respected and applied across the Member States in a uniform manner. It also discusses the implications of the opinions for consumers, merchants and financial services firms in the context of the EU's Single Currency Package and other developments. [ABSTRACT FROM AUTHOR]

Copyright of Umsatzsteuer-Rundschau is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Boletín Económico de ICE is the property of S.G.E.E.I.P.C., Secretaria de Estado de Comercio, Ministerio de Industria, Comercio y Turismo and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The EU is on the verge of adopting a comprehensive legislative package that will significantly strengthen its anti-money laundering (AML) efforts. Besides this legislative work, there have recently also been a number of noteworthy judicial developments at the EU level in the area of AML. This article assesses a number of such recent cases. It shows that EU case-law can also be a driver for bolstering the EU's AML framework. [ABSTRACT FROM AUTHOR]

This article seeks to provide insight into the history and acceptance of paper money within British North America by examining the state money issued by Lower Canada's civil government and the British Army during the War of 1812. Prior to the war, British North America was suffering from a specie shortage that was further exacerbated by the need for significant expenditure increases to provision the state with the resources it needed for its war effort. In response, colonial authorities issued the Army Bills, a paper money that was backed by acceptance in paying public debts and duties while also possessing qualities that adhered to metalist principles. To many observers surprise, the money successfully circulated and was accepted by Lower Canada's colonists, who beforehand had largely been perceived by colonial officials as distrusting of paper money. This research argues that the state's acceptance of Army Bills for discharging public debts, particularly merchant duties, ensured that the money would provide the colonial government with the fiscal flexibility it needed to conduct its war effort. This provision, in addition to measures like legal tender laws protecting its use in private transactions, also supported its successful circulation within the colonial economy during the war. [ABSTRACT FROM AUTHOR]

This scoping review examines individual and societal use cases of Bitcoin in the peer-reviewed literature. Arksey and O'Malley's scoping review methodology was used, and a comprehensive search strategy was employed using Web of Science and Engineering village databases. Articles were screened at the title and abstract and full-text levels by the authors. One author conducted data extraction to summarize the data. In total, 17 relevant articles were included in this review. Investment and savings were the most widely reported use cases at an individual level, with payments and international transfers less frequently reported in the studies. Only two studies reported on societal use cases of legal tender; however, only one country, El Salvador, executed its intention. Our study suggests that Bitcoin is being used by individuals around the world with little report of societal (e.g., country adoption) uses cases. For example, there is evidence on the internet and on a grass-roots level that Bitcoin is being used in circular economies; however, the peer-reviewed literature may not yet capture the extent and full benefits and challenges. As such, we provide ideas for future research to more comprehensively explore Bitcoin uses and its impacts on individuals and society. [ABSTRACT FROM AUTHOR]

The objective of this article is to analyze the two most important monetary laws that have been implemented in El Salvador, namely the Monetary Integration Law (MIL) and the Bitcoin Law. The most important articles of both laws will be analyzed, as well as the consequences of dollarization, and the possible advantages and risks associated with the adoption of Bitcoin as legal tender. Although this measure may have some positive aspects by encouraging financial innovation and facilitating remittances, the macroeconomic risk is very high due to the volatility of this cryptocurrency. So far no positive results have been achieved as the acceptance has been very low and there has been a depreciation of the asset in recent months. [ABSTRACT FROM AUTHOR]

This paper analyses the legal framework of national virtual currencies and so-called Central Bank Digital Currencies (CBDCs) from a comparative law perspective. The authors define the meaning of the terms “means of payment” and “legal tender” and determine the legal consequences of classifying certain means of payment as legal tender. Building on this, the authors present new developments in the field of sovereign virtual currencies and shed light on their evolution through a comparative legal analysis of various national virtual currencies. In this context, the authors present developments in various African countries, Venezuela’s initiative to introduce the first state-backed crypto token, the first CBDC pilot projects in Uruguay and China, and considerations to introduce a CBDC in the EU. Based on the analyzed systems, problems regarding privacy, user protection and effective regulation of transactions are highlighted in order to present the legal challenges for the establishment of a fully functional (supra-)national euro CBDC. [ABSTRACT FROM AUTHOR]

Copyright of Transformations in Business & Economics is the property of Vilnius University and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Brazilian Journal of Law & International Relations / Relações Internacionais no Mundo is the property of Relacoes Internacionais no Mundo and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Objective: The study examines the bane of legal tender redesign policies on economic growth in Nigeria. Approach: It employed a causal-comparative research design for the study. The data were collected for ten (10) years, spanning from 2013 to 2022, with quarterly observations specifically chosen to capture the recent challenges posed to the Nigerian economy during the period of redesigning the legal tender. The data was sourced from the National Bureau of Statistics (2023) report. The statistical method used included normality testing, descriptive statistics, and OLS regression analysis to test the research hypotheses. Data analysis was conducted using E-views 10.0 statistical software. Results: The finding revealed that Kolmogorov-Smirnov and Shapiro-Wilk tests indicated a normal distribution, except for the inflation rate and GDP. The study's findings led to the rejection of all hypotheses, including INFR (t: 0.368060; p=0.7150>0.05), CPS (t: -0.696308; p=0.4907>0.05), and COB (t: 1.972444; p=0.0563=0.05). Implication: As a result, the study concludes that the redesign of legal tender is only one aspect of economic policy. Value: This suggests that redesigning legal tender notes with key national celebrations or anniversaries to boost feelings of patriotism and unity encourages positive mawkishness that promotes economic growth. [ABSTRACT FROM AUTHOR]

Copyright of Dilemas Contemporáneos: Educación, Política y Valores is the property of Dilemas Contemporaneos: Educacion, Politica y Valores and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This article fundamentally reviews the status and future challenges of Bitcoin (BTC) and its blockchain technology. Most likely looking ahead, this "fundamental" of cryptoas- sets will continue to play the role of investment and risk asset, virtual and digital, but also and to a lesser extent as a medium of exchange for certain transactions and commercial activities. It will face stiff competition with other cryptocurrencies and with the creation of digital money by central banks (CBDC) based on stable currencies. Since it is not feasible for it to become generalized as legal tender, its value will always be quoted in USD (or other hard currency), as it is currently, and, based on that quote, the exchange conversion to national currencies will have to be made. Its current technological limitations, in addition to its high volatility, have inhibited the widespread use of BTC as a medium of exchange. Among the factors that would favor greater adoption are: 1) reasonably homogeneous global regulation; 2) a reduction in the high concentration that the BTC market currently exhibits; and 3) the techno logical improvements required by the BTC network to overcome deficiencies and prevent risks: reduced scalability, zero interoperability, improvement of its underlying technology and the challenge of quantum computing to its mining. In the longer term, it will be necessary to worry about its deflationary nature. [ABSTRACT FROM AUTHOR]

Demonetization is an act of divesting a currency unit from its legal tender. In a developing country, the act of demonetization will have a direct influence on various sectors. An event study is an empirical analysis to investigate the effect of such unforeseen events. In this study, we investigate the impact of demonetization on the Indian stock market. For the analysis, daily data from the NIFTY 50 Index during demonetization have been analyzed within the observation of different event windows. These event windows are framed as 0–7 days, 0–14 days, and 0–30 days to understand the impact of demonetization during the analysis period 8th November 2016–21st December 2016. The study concludes that the impact of events on the Indian stock market lasted for a short time-period and the market recovered within 1 month. More precisely, in the case of demonetization, though the stock market initially viewed the event as disruptive, Cumulative Abnormal Returns bounce back to indicate that the negative financial impact was not as severe as the industry perceived. [ABSTRACT FROM AUTHOR]

The Covid-19 pandemic has accelerated a shift towards digital payments and altered consumer behaviour when it comes to making payments. As a result, the use of state-issued money as legal tender continues to decline in most countries. In turn, the functions and existence of legal tender has decreased. Acknowledging such facts, the purpose of this research is to examine an ideal legal tender for the digital era that can restore the legal tender function while accommodating payment innovation. This research explores legal theories on money and legal tender, as well as the characteristics of various forms of money issued by the State and the private sector, i.e., fiat money, commercial bank money, cryptocurrency, and central bank digital currency. This research concludes that an ideal legal tender for the digital era should incorporate both cash and digital currency. Under this notion, central bank digital currency might serve as the ideal legal tender for the digital era. Nonetheless, there are certain prerequisites to the issuance of such legal tender. These include at least conducting thorough interdisciplinary research and pilot projects by the central bank, establishing an adequate regulatory framework, and ensuring public acceptance of such currency as a means of payment, as well as developing the necessary infrastructure.

Copyright of Journal of Soochow University Philosophy & Social Sciences Edition is the property of Soochow University and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of FinanzRundschau is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

In the second half of the nineteenth century, the Chilean free banking system worked similarly to how Adam Smith describes the eighteenth-century free banking system in Scotland. The characteristics of free banking that Smith identifies as conductive of successful outcomes—free entry, unlimited liability, and convertibility on demand—are present in both Scotland and Chile. And the Chilean system failed for similar reasons to the worries Smith had about the Scottish system: inconvertibility, legal tender, involvement with government borrowing, and lobbying. The Chilean experience of free banking appears to follow Smith's account of free banking. [ABSTRACT FROM AUTHOR]

The article examines international approaches to blockchain technologies and the choice between legal curtailment and expansion. Topics discussed are current state of U.S. law, risks of crypto leniency and sparsely regulated expansion, proliferation of cryptocurrencies on the scale of a national sovereign, current state of international law where cryptocurrencies do not constitute legal tender, and dichotomy between countries seeking to expand crypto uses and those curtailing.

The introduction of a new form of digital central bank money (Central Bank Digital Currency – CBDC) is actively discussed in the Eurozone. This paper explores different design features of retail CBDC and highlights terminological inconsistencies in the debate surrounding their legal status. It compares CBDC to incumbent forms of money and analyses central questions regarding their introduction from the perspective of European Union law, especially whether the ECB has to power to introduce CBDC and under which conditions CBDC would have legal tender status. For this appraisal, focus is especially put on the interpretation of the notions 'legal tender', 'banknotes', and 'coins' referred to in Art. 128 TFEU; the analysis is supported by experiences drawn from the legal discussion in the United States. [ABSTRACT FROM AUTHOR]

This paper offers general guidelines for central bank capital management. Capital adequacy is important to be a credible, independent monetary authority over a medium-term horizon. Central banks, however, face several challenges in determining their capital adequacy. Firstly, the amount of capital only plays an auxiliary role in central banks' effectiveness given that they cannot default as long as they have the right to issue legal tender. Secondly, central banks face two types of financial risks: calculable risks from current exposures and latent risks from future exposures. These latent risks, in particular, are difficult to quantify because they stem from contingent policy measures such as quantitative easing and lending of last resort. It is argued that a central bank's target level of capital (1) can be calibrated with a confidence level that is lower than that used for commercial banks and (2) takes latent risks into account that are related to GDP or the size of the financial sector in the economy. [ABSTRACT FROM AUTHOR]

The IRS issued Notice 2014-21 in which they classify cryptocurrency as property. However, the variety and usage of cryptocurrency has increased since Notice 2014-21 so that cryptocurrency has become a significant and widely accepted component of the global financial system. Cryptocurrency includes a diverse group of digital assets with different origins and uses. One type of cryptocurrency, Bitcoin, has been adopted as legal tender in two countries. Yet the IRS guidance for reporting cryptocurrency has not changed. In this paper, we examine the current regulatory framework regarding cryptocurrency. Next, we discuss alternative tax treatments for cryptocurrency and the tax effects of those potential treatments. Finally, we make policy recommendations for the tax treatment of cryptocurrency. [ABSTRACT FROM AUTHOR]