Central Bank of Costa Rica Warns the Public about Cryptocurrencies but Says they’re not Illegal

The Central bank of Central American country Costa Rica has warned its citizens about the risks associated with trading cryptocurrencies such as Bitcoin,Ethereum among others but also noted that investing in such digital currencies is not illegal within the region.

The President of the Central bank, Rodrigo Cubero,went on to state that the only risk is that the digital currencies might not be accepted as payment options within the region as it is not a legal tender in Costa Rica. He stated in the report by local media outlet;

“Although its use is allowed in Costa Rica, whoever wishes to acquire these assets does so at their own risk and expense. That is why it is important that those who decide to acquire this type of digital asset are well informed of its characteristics and the risks they entail ”, warned Rodrigo Cubero, president of the Central Bank.

However, the ministry of Finance in the region had previously overruled payment of taxes with cryptocurrencies at a time. With this, the President affirmed that the citizens were free to use cryptocurrencies but they wouldn’t have any higher legal authority to seek in case they lose money due to the volatile nature of the assets.

CBDC Is Not Necessary 

While being asked if the country has any plans  to launch a Central Bank Digital Currency, the President of the central Bank stated that it wasn’t necessary. He noted that the country already has a functional electronic system facilitated by SNIPE developed by the Bank. The system facilitates low cost and effective payments which is the whole aim of Central Banks.