Light stemming from progress has shone through for Andorra. They are a tiny country located in Europe, situated between Spain and France. Their government has recently gone ahead with approving the Digital Assets Act. This is a framework of regulations when it comes to blockchain technology as well as digital currencies.
The Digital Assets Act is also divided into two separate parts. The first part details how digital money can be created. This is also known as digital money that is programmable and sovereign. This money can then be exchanged within a system that is closed. What this means is that Andorra can very well create its very own token.
The Two Halves Of The Digital Asset Act
The first half of the Act talks about how digital money can be created. And the second part calls digital assets ‘financial instruments’. It then goes on to say that the intention is to develop an environment which allows for the regulation of distributed ledger as well as blockchain technology.
It’s important to note that in Andorra, digital currencies as well as cryptocurrencies aren’t considered legal tender. The Digital Assets Act also doesn’t talk about the means of exchange. That is a privilege that is kept for the currency that is preferred by the European Central Bank. This is the euro. Diari d’Andorra, a nationally read newspaper sees the Digital Assets Act as a step forward when it comes to enabling the use of cryptocurrency on a day to day basis.