The micro -state of Andorra wants to create a crypto digital currency and a central bank (CBDC) – a move related to a legislative proposal that could eventually see the state issue its own tokens – and even if there is an initial setback, it could push for the use of crypto -friendly policies in the future.
The population of the Principality of Andorra is just under 78,000, but it has its own parliament and is technically independent of both. the youngest of Spain and France, the nation is sandwiched between. And the Andorran government wants to implement some pro-crypto policies in the last few months.
Last year, he made the first move to regulate crypto operators based in the country. And in April, per news outlet Diari Andorra, the Democrat who manages for the Andorra party proposed a proposal to “allow the state to make its own tokens.”
The draft law cites what the authors call “programmable digital sovereignty money” that could “be a means of payment” and would be issued by “a central bank or a sovereign government authority.” These would also be “intended for use by the general public,” and could be used to create a government bond issue.
The proposal mentions “blockchain technology” and, perhaps more importantly, also appears to give private businesses permission to launch their own digital tokens – cryptoassets in all but names – under certain circumstances.
The proposal was released for public consultation. But last month, the same newspaper reported, the architect hit a pause button on the plan. Instead of fully accepting it, politicians even decided to approve of “tokenization” in “closed ecosystems,” such as “ski resorts.” So, coins can’t be sold publicly or listed on exchanges – and will be more common with “Disney Dollars” than with bitcoin (BTC).
The revised bill, now the Digital Asset Law, dictates that crypto assets “are not possible [used] as a legitimate tender in the Principality, ”and appears to have been greatly diluted on request Andorra Financial Authority (AFA), the top financial regulator.
The AFA stated that it “requires more resources in order to perform the required controls” on cryptoassets.
However, supporters of the bill will return for a second bite of cherry. The terms of the act require the architect to return with a “new bill” before the 15-month period expires.
And this new proposal will contain details on the procedure of “issuing digital assets that can be considered as financial instruments.” This apparently opened the door for cryptoasset to achieve legal tender status, El Salvador-style.
Media outlets said the delay would provide “room for maneuver” for politicians who want to track how EU regulators monitor the crypto sector and “so they can follow suit.”
But some in the private sector prefer not to wait – and have proposed ambitious plans to follow in the footsteps of other state leaders.
A more recent proposal from an Andorran -based crypto company 21 million drew a case for the adoption of BTC in the kingdom.
The company said that the use of bitcoin could allow it Treasury to “open up a lot of economic activity,” because it would “allow Andorran banks and businesses to transact outside” bank messaging networks like SWIFT. However, the parties can “place transactions on Bitcoin blocks, while allowing businesses and citizens of Andorra to make daily transactions on it Lightning network. ”
The company explains that bitcoin will “provide additional resilience to legacy channels while maintaining Andorra’s financial independence.”
The company’s CEO urged politicians to act quickly, explaining:
“By attracting innovative entrepreneurs who want to enjoy a quality European lifestyle in a safe environment, the country can rise further to the most prosperous country on earth, while still being able to control the future, and it’s absolutely amazing!”