The future of cryptocurrencies promises expanded opportunity for Costa Rica and its residents. Given the increased interest in cryptocurrency in Central America and neighboring countries, Costa Rica seems poised to take advantage of bitcoin real estate transactions. In fact, the first half of 2021 already saw a surge in crypto-related real estate transactions, more than 10 times the volume from 2019 and 2020 combined.
Legal and policy perspectives for cryptocurrency use in Costa Rica
The formal government policy of Costa Rica regarding cryptocurrency is to refrain from hindering the technology’s growth. This fosters a favorable yet undetermined legal environment for cryptocurrency enterprises. The Costa Rica government has issued a warning about cryptocurrencies, but they have also signaled the potential in blockchain technology and do not plan on hindering the technology’s development. Instead, the government of Costa Rica has adopted a hands-off approach to “study the issue.”
Cryptocurrencies are already accepted as a legal means of payment in various parts of the country, despite the fact that they are not formally recognized by the Central Bank. Costa Rica is one of few jurisdictions around the globe where it is legal for employers to pay their employees in cryptocurrency. Technically, Costa Rica’s labor code permits employees to be paid in “commonly accepted assets” as a means of payment. Arguably, cryptocurrency is a “commonly accepted asset” in Costa Rica. However, there are still legal obstacles for employers that intend to pay their employees with cryptocurrency, such as other related labor payment and obligations which are not accepted vía cryptocurrency.
Another point of note for real estate buyers using bitcoin and other crypto in Costa Rica is the statutory bounds of “quasi-money” under Costa Rican law. According to Costa Rica’s legislature, as published by Freeman Law, the definition of “quasi-money” is “any asset that can be used as a means of payment and has been widely accepted as such in society.”
Costa Rica’s potential for crypto investment
Costa Rica is one of the world’s most market-driven crypto-friendly countries, with a slew of establishments currently taking a variety of crypto currencies as payment.According to Coinbase.org Costa Rica, an online map where you can find shops and businesses that use BTC for product and service sales, there are more than 50 businesses registered to show they accept bitcoin as a means of payment in Costa Rica.
Costa Rica is ripe for cryptocurrency pioneers in more ways than one. Certainly the active international investment market, world-class views and beaches are part of the real estate boom in the country. However, Costa Rica is primed for cryptocurrency pioneers in more ways than one. Costa Rica offers technology companies several competitive advantages that its neighboring countries in Latin America cannot offer, including a stable political atmosphere and has one of the best online infrastructures in Latin America. In fact, a fiber-optic network connects much of the country, providing optimal internet connectivity for technology companies in Costa Rica. Specifically, Costa Rica offers cryptocurrency miners competitive advantages because the country has one of the highest renewable energy outputs worldwide, albeit possibly at a higher price than other options. The abundance of electricity in Costa Rica is essential for miners since cryptocurrencies are notorious for high energy consumption.
Costa Rica’s well-known economic and political stability, particularly when contrasted to other Central American nations (see Nicaragua, El Salvador), makes it an attractive location for crypto and blockchain firms. Costa Rica’s future in cryptocurrency is bright, with so many of the best resources, infrastructure, and legislation in the world for crypto currency and blockchain-based enterprises.