Key Takeaways
- Crypto payments are more common in Sofia, especially in areas like Vitosha and Serdika.
- Some merchants prefer stablecoins like Tether over Bitcoin due to price stability.
- Prepaid crypto cards and wallets simplify spending for users and merchants.
- Bulgaria has no specific regulations for cryptocurrencies, creating legal and financial ambiguity.
- Tax laws in Bulgaria apply to crypto transactions, making record-keeping essential.
An Overview of Spending Crypto in Bulgaria
Crypto payments are becoming popular in Bulgaria, especially in the capital city of Sofia. Several vendors, shops, and food establishments in central areas, including Serdika and Vitosha, now accept Bitcoin as payment.
One key advancement in crypto spending in Bulgaria is the adoption of the Lightning Network. This technology allows faster Bitcoin transactions by bypassing the need for every payment to be recorded on the main blockchain. Many shops, including smaller neighborhood stores, have embraced this method due to its speed and simplicity, often displaying a sticker at their entrances to indicate they accept Bitcoin.
In addition to the Lightning Network, crypto payment cards are available. These cards function similarly to debit cards but enable users to spend directly from their cryptocurrency accounts. These tools make spending Bitcoin and other cryptocurrencies more practical in everyday situations.
Many merchants also accept stablecoins like Tether instead of Bitcoin, as these provide greater price stability. In such cases, users can convert their Bitcoin into stablecoins to complete transactions.
Currently, Bulgaria lacks specific cryptocurrency regulations. Cryptocurrencies are not classified as financial instruments and fall outside the supervision of the financial regulator. Activities involving Bitcoin and other cryptocurrencies are treated as financial assets, but no specialized licensing exists for businesses operating in this space.
While crypto adoption in Bulgaria is still developing, the increasing number of merchants accepting Bitcoin and the use of advanced tools like the Lightning Network suggest a positive trajectory for crypto spending in the country.
Best Places to Spend Crypto in Bulgaria
| S/N | Best places to spend crypto in Bulgaria | Category |
| 1. | Ancona Pizza | Food and Drinks |
| 2. | White Cliffs | Tourism |
| 3. | Kuzina Greek Eatery | Food and Drinks |
| 4. | Maestro Studio | Technology |
| 5. | Social Cafe | Food and Drinks |
| 6. | Pchelin Omayski | Grocery |
Ancona Pizza
Ancona Pizza is a chain of pizzerias in Sofia, Bulgaria, offering Italian and Mediterranean cuisine. They have multiple locations, including Ovcha Kupel, Lyulin, Nadezhda, and Reduta. The pizzeria accepts cryptocurrency across all their locations in Bel
White Cliffs
White Cliffs is a cozy resort destination in Byala, Bulgaria. They offer beachfront accommodations for both short- and long-term rentals. Guests can also enjoy a cocktail bar on-site, making it an ideal spot for relaxation by the sea.
The resort supports cryptocurrency payments and even offers a 10% discount for payments made with Bitcoin, including Onchain and Lightning Network transactions.
Kuzina Greek Eatery
Kuzina Greek Eatery is a restaurant in Sofia, Bulgaria, offering traditional Greek cuisine with a modern twist. Located at 36 Khan Asparuh Street, it operates daily from 11:30 AM to 11:30 PM. The menu features dishes inspired by various Greek regions, including seafood, salads, and desserts. The restaurant supports crypto payments for their cuisines.
Maestro Studio
Maestro Studio specializes in digital solutions, including mobile apps, websites, SaaS tools, and AI integrations. They also offer SEO optimization and website support to enhance performance and visibility.
Maestro Studio allows customers to pay with cryptocurrencies such as Bitcoin, Ethereum, and other digital currencies. Payments are processed on-chain and through the Lightning Network.
Social Cafe
Social Cafe Bar & Kitchen is located on Vitosha Boulevard in Sofia. It offers a welcoming atmosphere where food and socializing go hand in hand. The restaurant specializes in Mediterranean and Italian cuisine and the menu features freshly made pasta, pizza, steaks, and seafood.
The restaurant has two floors and an outdoor seating that provides a vibrant setting for both locals and tourists to enjoy exceptional food and drinks. Social Cafe accepts cryptocurrency, especially Bitcoin for payments.
Pchelin Omayski
Pchelin Omayski is a beekeeper store located at Radomir Municipality that sells bee produce including honey and beeswax.
The store accepts cryptocurrency like BTC, BCH, ETH, and LTC on their online store. To pay with crypto, select “Bitcoin and other cryptocurrencies” at checkout, agree to the terms, and complete the CAPTCHA. You will be redirected to Coinbase, where you can choose your cryptocurrency and use the provided amount and wallet address to complete the transaction. After payment, you will return to the site and receive confirmation of your order.
Tools for Spending Crypto in Bulgaria
Source: Freepik
Spending cryptocurrency in Bulgaria has become easier with various tools and services available. Here are the most popular options:
Prepaid Crypto Cards
Prepaid cards are another practical option for crypto holders. These cards allow you to convert crypto to fiat and spend it anywhere traditional cards are accepted, including ATMs. A good example of these prepaid crypto cards is the UPay card. UPay stands out for its secure, transparent and user-friendly crypto card. It offers no transaction fees for purchases and a 2% ATM withdrawal fee with the card.
Crypto Wallets
Crypto Wallets are another convenient option. Crypto wallets have also evolved to support spending, with many now integrating direct payment capabilities. Wallets like UPay enable users to pay for goods and services without needing to first convert their crypto into fiat.
Crypto ATMs
Crypto ATMs allow you to convert crypto into cash or make deposits for transactions. For those who prefer cash, crypto ATMs are increasingly available across Bulgaria. Major cities like Sofia, with 11 ATMs, Plovdiv, with 4, and Burgas, with 3, have established a network of machines that allow users to exchange cryptocurrency for cash or make deposits.
Tips for Spending Crypto in Belgium
Source: Freepik
Before using Bitcoin in Bulgaria, it’s important to understand a few things that will impact how and where you can spend your cryptocurrency. Here’s a detailed guide:
Take Volatility into consideration
Cryptocurrency is highly volatile, meaning its value changes constantly. For example, if you have 0.01 BTC worth 300 BGN today, its value could drop to 250 BGN or rise to 350 BGN tomorrow. This fluctuation affects your purchasing power.
Before making a purchase, always check the current exchange rate and confirm that your Bitcoin balance is enough to cover the cost. This is especially important for transactions requiring exact amounts, like hotel bookings or dining bills.
Tax Implications
There are no regulations specifically for cryptocurrencies, but that doesn’t mean tax rules don’t apply. Cryptocurrency ownership isn’t taxable in Bulgaria unless you’re actively trading or using Bitcoin for purchases. This means if you’re holding Bitcoin in your wallet, you don’t need to report it. But If you pay for dinner using Bitcoin the transaction is taxable under Bulgarian law. Belgium has Bitcoin taxes, at 33% on any cryptocurrency transaction. Keep records of your transactions to ensure compliance with Bulgarian tax regulations.
Be informed about the Transaction Fees
Bitcoin transaction fees are typically lower than traditional bank fees. For example, a bank might charge 2-3% for cross-border payment, while a Bitcoin transaction could cost as little as a few cents, depending on the network’s traffic. However, during periods of high demand, fees might rise, making small transactions less cost-effective.
Always check the current fee rate before sending Bitcoin. Tools like blockchain explorers or wallet applications display fee estimates for your transaction.
Use Stablecoin as Alternative
Some merchants in Bulgaria don’t accept Bitcoin but may support stablecoins like Tether (USDT), which are pegged to traditional currencies like the USD. If you need to pay in USDT but hold BTC, you’ll need to convert Bitcoin to Tether using a crypto exchange or wallet with a built-in swap feature.
Stablecoins are ideal for transactions requiring price stability, making them a preferred choice for businesses and customers alike. Research merchants beforehand to know which cryptocurrencies they accept and plan your payments accordingly.
Challenges of Spending Cryptocurrency in Bulgaria
Source: Freepik
Spending cryptocurrency in Bulgaria comes with several challenges including;
Limited Adoption
Crypto payments are still not widely accepted across Bulgaria. While businesses in Sofia, particularly in central areas like Vitosha and Serdika, have begun accepting Bitcoin, such adoption is rare outside the capital. This limits options for users looking to spend their cryptocurrency in smaller towns or rural areas.
Volatility
The unpredictable value of cryptocurrencies, including Bitcoin, presents a significant hurdle. Users often face uncertainty about whether their holdings will retain sufficient value for purchases. This volatility makes it difficult to rely on crypto for everyday transactions.
Lack of Regulation
The absence of clear cryptocurrency regulations in Bulgaria adds uncertainty for both users and merchants. Cryptocurrencies are not classified as financial instruments or virtual money, and there is no regulatory framework for crypto activities. This creates ambiguity in terms of consumer protection and business practices.
Conclusion
Spending cryptocurrency in Bulgaria has seen gradual progress, particularly in Sofia and other major cities. Innovative solutions like the Lightning Network, prepaid crypto cards, and crypto wallets have made transactions faster and more accessible. Merchants offering crypto payment options, such as pizzerias, cafes, and even resorts, demonstrate a growing acceptance of digital currencies in daily life.
However, challenges remain. Adoption outside urban areas is limited, reducing opportunities for users in smaller towns. The volatile nature of cryptocurrencies makes their purchasing power unpredictable. Additionally, the lack of clear regulations creates uncertainty for both merchants and consumers, leaving many hesitant to incorporate crypto into their payment systems.
Despite these challenges, the potential for growth in crypto adoption is evident. With increasing merchant participation, the rise of stable
FAQ
- What tools can I use to spend crypto in Bulgaria?
Prepaid crypto cards, wallets with direct payment options, and the Lightning Network are popular tools. Crypto ATMs also provide cash conversion services.
- Are Bitcoin transactions taxed in Bulgaria?
Holding Bitcoin is not taxable, but using it for purchases or trading incurs taxes under Bulgarian law. Keeping transaction records is important.
- Can I use stablecoins in Bulgaria?
Yes, many merchants accept stablecoins like Tether due to their price stability. Conversion from Bitcoin to stablecoins may be required for some transactions.
- Are there specific crypto regulations in Bulgaria?
Bulgaria lacks specific cryptocurrency regulations, treating crypto as financial assets rather than legal tender.
- Are crypto ATMs common in Bulgaria?
Yes, crypto ATMs are available in major cities like Sofia and Plovdiv, offering cash conversion and deposit option
