Currency in Malta

The currency history of Malta encompasses the transition from the Maltese Pound (Lira) to the Euro. Before adopting the Euro, Malta had its own currency, the Maltese Pound, introduced in 1825, which later gave way to the Maltese Lira in 1972. During the British colonial period, Malta used the British Pound. The adoption of the Euro marked Malta's integration into the Eurozone, streamlining transactions and aligning its economic policies with the European Union. Today, the Euro stands as the sole currency in Malta, representing its commitment to broader European economic collaboration.

The official currency of Malta is the Euro. The Euro coin series includes eight different denominations: 1, 2, 5, 10, 20, and 50 cents, as well as €1 and €2 coins. Each Euro coin has a common side, which is the same for all Eurozone countries, and a national side that indicates the issuing country. In the case of Malta, the national side of the Euro coins features unique designs or symbols specific to Malta, distinguishing them from coins issued by other countries in the Eurozone.

Malta adopted the euro as its official currency on January 1, 2008, as part of its commitment to deeper economic and political integration within the European Union (EU). Joining the Eurozone provided Malta with the advantages of a stable and widely accepted currency, fostering economic stability, facilitating cross-border trade, and enhancing the country's credibility in the international financial markets. The decision to use the euro aimed to strengthen Malta's economic ties with EU member states, promote financial stability, and eliminate currency exchange barriers, ultimately contributing to the island nation's economic development and integration into the broader European economy.

The national currency of the Republic of Malta, the Maltese Lira (MTL), served as legal tender from 1972 until its replacement by the Euro (EUR) on December 31, 2007. Commonly abbreviated as Lm and occasionally denoted with the ₤ symbol, the Maltese Lira was also colloquially referred to as the Maltese Pound. Banknotes in denominations of 1, 2, 5, 10, and 20 lira circulated alongside coins in values of 1, 2, 5, 10, 25, and 50 lira

Malta has gained a reputation as the "Blockchain Island" by actively fostering a regulatory environment conducive to cryptocurrency and blockchain businesses. The country's appeal lies in its competitive tax regime, offering clarity through the "Virtual Financial Assets Act" for the taxation of virtual financial assets. This regulatory framework has attracted numerous crypto companies to establish operations in Malta.

Individuals investing in cryptocurrencies benefit from tax exemptions on capital gains, while businesses in the sector enjoy a favorable corporate tax rate of 35%, further incentivized through various deductions. The establishment of the "Malta Digital Innovation Authority" enhances legal certainty for both businesses and investors.

Malta's journey towards becoming a cryptocurrency hub began in 2017 with legislative initiatives. The "Virtual Financial Assets Act" sets guidelines for ICOs and digital asset exchanges, while the "Innovative Technology Arrangements and Services Act" recognizes the validity of blockchain records. The "Malta Digital Innovation Authority Act" oversees and certifies blockchain platforms, fostering investor protection and international recognition.

While Malta's progressive approach has received praise, concerns linger regarding potential vulnerabilities to money laundering and illicit activities due to the relaxed regulatory stance.