Bitcoin as a Legal Tender

Daehan Kim (), Jing (Maggie) Chen (), Doojin Ryu () and Robert I. Webb ()
Additional contact information
Daehan Kim: Republic of Korea Army 22nd Division
Jing (Maggie) Chen: Cardiff University
Doojin Ryu: Sungkyunkwan University
Robert I. Webb: University of Virginia

Asia-Pacific Financial Markets, 2025, vol. 32, issue 4, No 1, 1175-1188

Abstract: Abstract This study examines the viability of Bitcoin as legal tender with particular emphasis on the experience of El Salvador. In particular, we examine the challenges, benefits, and costs, of using Bitcoin as legal tender in a country. Our analysis underscores the significant costs of using Bitcoin to process routine transactions. These costs, both temporal and financial, form a considerable barrier to Bitcoin’s widespread adoption and use as legal tender. Given the uncertain impacts that the successful adoption of Bitcoin may cause, we suggest that there is little reason for policymakers to actively drive Bitcoin adoption.

Keywords: Bitcoin; Bitcoin law; Cryptocurrency; El Salvador (search for similar items in EconPapers)
JEL-codes: E42 G21 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10690-024-09499-y Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:apfinm:v:32:y:2025:i:4:d:10.1007_s10690-024-09499-y

Ordering information: This journal article can be ordered from
http://www.springer.com/finance/journal/10690/PS2

DOI: 10.1007/s10690-024-09499-y

Access Statistics for this article

Asia-Pacific Financial Markets is currently edited by Jiro Akahori

More articles in Asia-Pacific Financial Markets from Springer, Japanese Association of Financial Economics and Engineering
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().