The king of crypto-currencies is managing to turn the tables on formerly skeptical countries. It’s Tunisia that is now becoming even more crypto-friendly, notably by decriminalizing certain Bitcoin (BTC) related transactions.
Bitcoiners don’t belong in jail
On June 12, Tunisia’s Minister of Economy, Ali Kooli, shared his desire to change the law on cryptocurrencies. Indeed, he would like to decriminalize the possession and mining of cryptocurrencies as well as their use as a means of payment. He said he would “change the law, we can not put a young Tunisian in jail for buying Bitcoins.
The governor of the Central Bank of Tunisia, Marouane Abassi, had already mentioned in 2020 the need to monitor Bitcoin and the blockchain. In particular, he had called for effective monitoring of BTC use cases. In addition, Tunisia and Afghanistan were looking in 2019 for ways to issue Bitcoin-based bonds to save their economies.
According to Abassi, the country had created a special group to look into the mechanics of a Bitcoin sovereign bond and what cryptocurrencies and blockchain could offer. The Tunisian Central Bank has been looking into the possibilities of digitizing its currency as early as 2019.
The IMF at all costs?
Can Tunisia go as far as giving Bitcoin legal tender, like El Salvador? The country is currently discussing with the IMF on the size of the loan program to deal with the crisis. On May 21, Abassi had said at a parliamentary hearing that “if we don’t negotiate with the IMF, no one will agree” to provide Tunisia with the external financing it needs.
Unsurprisingly, the IMF reacted unfavorably and strongly to El Salvador’s decision to make Bitcoin a national currency. Indeed, El Salvador has requested a loan of more than $1 billion from the Bretton Woods institution, a potentially compromised operation since the country has indicated to legalize Bitcoin. The Tunisian Central Bank, meanwhile, seems for the moment to want to remain in the good graces of the IMF.
Bitcoin and its younger siblings are gradually making their way into the financial landscape. Some governments and regulators have realized that they will now have to deal with them, rather than vainly trying to exclude them from the monetary and financial system.
