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Cryptocurrency is not a legal tender: MMA

Lamya Abdulla
10 October 2021, MVT 19:23
(FILE) Governor of MMA Ali Hashim on August 22, 2021: MMA had announced in 2018 as well that buying and selling of cryptocurrencies will not be valid -- Photo: Ahmed Awshan Ilyas/ Mihaaru
Lamya Abdulla
10 October 2021, MVT 19:23

Maldives Monetary Authority (MMA) said that the Maldivian law does not allow for cryptocurrencies to be used for valid business transactions in the nation.

This announcement was made by the central bank while S Hotels that operates two resorts in Crossroads Maldives have said they will be using cryptocurrencies as payment of their services.

MMA has previously announced in 2018 as well that buying and selling of cryptocurrencies is prohibited in Maldives.

Digital currencies have been becoming popular worldwide. Although most nations have not made a decision as to whether or not is valid,.China has announced that cryptocurrency transaction will not be accepted in their country.

On September 7, El Salvador became the first nation to accept the cryptocurrency Bitcon as a legal tender is El Salvador. Salvadorians had pushed back against this decision in the following weeks as well.

One of the reasons governments worldwide is against adopting cryptocurrency transactions is that it is largely unregulated by any governing party. Its demand has been increasing along with it's popularity though.

S Hotels is one of the first hotel chains to announce they will be accepting this method in their financial transactions. They said they would be accepting USD Coin and Tether Tokens (USTD).

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