Andorra Adopted Legislative Framework Dubbed ‘Digital Assets Act’

Andorra Adopted Legislative Framework Dubbed 'Digital Assets Act'
  • An attempt is made to regulate blockchain and distributed ledger technologies.
  • Andorra is one of Europe’s smallest nations, with an area of under 500 square kms.

Andorra, a little European nation between France and Spain, casts a ray of hope for the future. Government officials in Andorra recently adopted a legislative framework for digital currencies and blockchain technology called the Digital Assets Act, which the country’s General Council passed.

First Step Towards Crypto Adoption

This is a two-step process: Digital money, or “programmable digital sovereign money,” may only be traded inside a closed system. To put it another way, this would empower the Andorran government to issue its own currency.

An attempt is made to regulate blockchain and distributed ledger technologies in the second portion of the act. Digital assets are referred to as financial instruments. However, Andorra does not recognize the legal tender status of cryptocurrencies or digital currencies. In this case, the European Central Bank prefers to use the euro as its currency of choice. 

According to the national daily Diari d’Andorra, the Digital Assets Act is a step towards “making cryptocurrencies a day-to-day reality.” Andorra’s Minister of Economy and Enterprise, Jordi Gallardo, said in an interview in May that blockchain technology was a major investment sector for the small nation. However, it is unclear if the minister referred to Bitcoin, the world’s most popular blockchain, or the distributed ledger technology that enables blockchains.

Andorra is one of Europe’s smallest nations, with an area of under 500 square kilometers. Contrary to widespread assumption, Andorra is not a tax haven; in 2018, the microstate abandoned banking secrecy. While taxes are lower in neighboring France or Spain, the financial sector accounts for up to 20% of the Economic output.

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Content writer by profession. A crypto lover and has passion for writing. Follows the developments of digital currency right from its launch, years ago.