Bitcoin is the most widely known and used cryptocurrency today, but there are thousands of others in the digital world, such as Dogecoin and Ethereum.
Thanks to the boom given in digital mining activities, which is the set of processes necessary to validate and process cryptocurrency transactions, central banks have decided to start working on their own digital currencies (CBDC) and regulate the use of existing ones.
The Financial Services Committee of the House of Representatives held a hearing on the promises and dangers of CBDCs in the country. During the hearing, emphasis was placed on the opportunity that could be lost for the country to shape the future of digital money if they don't take action soon.
Jerome Powell, chairman of the Federal Reserve, mentioned in July in front of the House that the lack of regulation on these currencies is concerning and needs to be addressed soon.
"If we're going to have something that looks like a money market fund, a bank deposit or a narrow bank, and it's growing very fast, we really ought to have proper regulation. And we don't have it today," he said.
Last year, several House Representatives proposed a law that would place digital currencies within a more stable scope in traditional banking.
Countries that approve cryptocurrencies
The most mind blowing case during the last year regarding cryptocurrency issues has been the approval of the 'Bitcoin Law' in El Salvador. The law establishes that "all economic agents must accept bitcoin as a form of payment when it is offered by the person acquiring goods or services."
Despite the controversies against the Bitcoin Law, the legal adoption of the cryptocurrency has sparked international support.
Bank of America commented that the country has advantages over others by adopting Bitcoin as a payment method, among the advantages is the possibility of improving the remittance system of Salvadorans abroad, improvement in the digitization of payments, increased options for consumers, and potential foreign investment.
In Colombia, a law to regulate the use of bitcoin and other cryptocurrencies was presented at least two years ago, but it is still being debated in Congress.
In Uruguay, a law was also announced that seeks to regulate Bitcoin-related activities, covering aspects such as trading and mining.
Because cryptocurrencies are decentralized, autonomous, cross-border and uncensurable, no government can have power over person-to-person transactions, so many seek to legalize their path to have control over transactional movements in their country.
In Argentina, one of the countries with the most volatile economy in the region, cryptocurrencies are not yet considered as a financial asset "because it does not underlie an asset nor can it generate any profitability," as explained Miguel Pesce, president of the Central Bank of Argentina at the opening of a conference on digital finance organized by the Argentine Institute of Finance Executives (IAEF). However, he assured that: "We will regulate the intersection of Bitcoin with the payment system and the foreign exchange market."