Andorra Taking Baby Steps Toward Crypto Adoption
The microstate of Andorra is looking to make crypto and central bank digital currency (CBDC)-related moves with a legislative proposal that could eventually see the country issue its own token – and despite an initial setback, could push to adopt crypto-friendly policies in the near future.
The population of the Principality of Andorra is just under 78,000, but it has its own parliament and is technically independent from both Spain and France, the nations it is sandwiched between. And the Andorran government has been keen to adopt a number of pro-crypto policies in recent months.
Last year, it made its first moves to regulate crypto operators that have a base in the country. And in April, per the news outlet Diari Andorra, the ruling Democrats for Andorra party put forward a proposal to “allow the state to create its own token.”
The draft law made mention of what its authors called “programmable digital sovereign money” that could “serve as a means of payment” and would be issued by the “central bank or a sovereign government authority.” It would also be “intended for use by the general public,” and could be used to make government bond issuances.
The proposal makes mention of “blockchain technology” and, perhaps more pertinently, also looks to grant private businesses permission to launch their own digital tokens – cryptoassets in all but name – under certain conditions.
The proposal was put out for public consultation. But last month, the same newspaper reported, its architects hit the pause button on the plan. Instead of accepting it completely, politicians instead decided to approve “tokenization” in “closed ecosystems,” such as “ski resorts.” As such, coins could not be publicly traded or listed on exchanges – and would
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