The Economy of Costa Rica and The Effects of Cryptocurrencies

The other side of the coin


At present, the virtual market of capitals is at the top in different developed countries of the terrestrial globe. Within this type of market, commercialization through cryptocurrencies, also known as virtual currencies, is causing a stir worldwide.

For example, Bitcoin is a virtual currency that has now reached a preponderant value compared to other digital currencies, but it has also exceeded the value of certain local currencies of a fiduciary nature. Which, today many analysts are very concerned about the effect this phenomenon has on the world economy.

The issue of cryptocurrency worries the Costa Rican economy just like the other Latin American countries. Economists in Costa Rica have taken time to sit down and conduct their respective analyzes on the subject. The attitude of some economists regarding the use of the cryptocurrency is positive because the legal bases of the country handle a concept called “quasi-money”, which is the assimilation of any asset as a means of payment, provided that it has a general acceptance in society.

However, there are also economic phenomena that can cause another type of impact on the financial environment of the Central American country. These have been determined by the public banking sector, which foresees a possible worsening of the nation’s economy if the cryptocurrency is given a wide freedom of use.

Costa Rica Cryptocurrency
Costa Rica cryptocurrency

Economists have agreed on a position that aims to shield the economy against some negative effect of the accentuated incursion of the use of virtual purses within the region.

For Costa Rican economists, the cryptocurrency does not represent a currency, or cryptocurrency as some users and informatics call it. Because they claim that a currency is a monetary good that is issued by an authorized national bank, and also, it is a currency of general acceptance worldwide for commercial transactions. They have determined that the cryptocurrency is a currency generated by technological developers, not by authorized banking.

For now, Costa Rican financiers see the use of digital currencies in commercial activities by Costa Rican citizens as risky. As such, operations are carried out through a currency that is not under ordinary banking regulation and, therefore, represents forms of commercialization that are not authorized by the Central Bank of the Central American country.

The foregoing reveals that the perspective of the majority of economists in this Caribbean country does not support the use of cryptocurrencies. Because it is not possible to monitor commercial transactions that can be traded through digital currencies.

They predict that the incursion of the cryptocurrency represents a legal imbalance for the country because it breaks the monopoly of the issuance of banknotes that legally belongs to the Central Bank. On the other hand, they argue that the use of digital currency confers a risk for commercial agreements because the lack of compliance cannot be supported by a collection system.

Digital currency come true
Digital currency come true

From the point of view of criminal law, several analysts argue that the free use of virtual currencies in Costa Rica would represent the acquisition of scope and freedom of organized crime to finance their activities without any concrete evidence. There are computer analysts who have pointed out inexperienced Costa Rican economists but obviate that analysts from seven countries have the same perspective as these Costa Rican professionals.

The Central Bank of Costa Rica has launched an opinion that sanctions those who make transfers to obtain cryptocurrencies. The sanction confers the elimination of the user’s bank account. The other banks of the Central American country have taken the example of the Central Bank, however, the latter does not prevent banks from marketing with virtual currencies, however, warns them that the failures that may cause such activity is under their responsibility.

Bitcoins are a new form of technology-based money.

Costa Rica is one of the countries that has the first place in technological development. That the Central Bank does not assume the virtual financial innovation of the commercial operations by means of cryptocurrencies, does not make of this Caribbean country a nation in delay. Well, the latest news in technology shows that the Costa Rican will continue its progress in this area assuming future innovations with readiness, but with discipline and supervision.

Quite simply, the economy of Costa Rica is walled by its professionals and government representatives before the economic, legal and social impact that is currently causing the course of the cryptocurrency within the virtual payment network. Because, although this new means of virtual payment has great advantages, it also has complex disadvantages.

All the above presents an optimal organization of the entities responsible for ensuring the economic and social balance of the Central American country. This promises stability and security for society and investors in Costa Rica. It should be noted that this Caribbean nation does not refuse technological changes, provided that these establish an economic balance that guarantees the continuation of the stable and good socioeconomic development of the country.

SOURCERichard Acosta
Previous articleCosta Rica: The Land of the “Crocodile Safari”
Next articleCosta Rica: Hospitable and Expatriate Financier
Oriundo de Monagas, Venezuela. Profesional en Lengua y Literatura, Teología y Administración.