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El Salvador plans to adopt Bitcoin as legal tender

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Bitcoin: El Salvador plans to make cryptocurrency legal tender

by Will Grant (?)

 

El Salvador's president says he will make the Bitcoin cryptocurrency legal tender in the country. If his plan is backed by congress, the Central American country would be first in the world to formally adopt the digital currency. It would be used alongside the US dollar, El Salvador's official currency.

 

President Nayib Bukele says Bitcoin will make it easier for Salvadorans living abroad to send payments home. "In the short term, this will generate jobs and help provide financial inclusion to thousands outside the formal economy," Mr Bukele told a Bitcoin conference in Florida, adding that it could also boost investment to the country. He said he would send the legislation to congress next week. Should it pass, the move would open up financial services to the 70% of Salvadorans who do not have bank accounts, the president said.

 

El Salvador's economy relies heavily on remittances, or money sent home from abroad, which make up around 20% of the country's gross domestic product (GDP). More than two million Salvadorans live outside the country, but they continue to keep close ties to their place of birth, sending back more than $4bn (£2.9bn) each year. Current services can charge fees for such transfers, which can take days to arrive and sometimes need to be picked up in person, according to the announcement.

 

"This will improve lives and the future of millions," Mr Bukele said. He did not give more details about how the policy would work.

 

Bitcoin, a virtual asset with no direct connection to the real economy, has seen large fluctuations in value over the years. Most of the world's central banks are looking into the possibility of creating their own digital currencies. In April, the Bank of England announced it was looking into creating a digital money that would exist alongside cash and bank deposits.

'PR value'

Strike, a mobile payments app set up in El Salvador, is working on the introduction of Bitcoin in the country, Reuters reports. "Adopting a natively digital currency as legal tender provides El Salvador the most secure, efficient and globally integrated open payments network in the world," founder Jack Mallers said.

 

Rohan Grey, an expert with the Digital Currency Global Initiative, told BBC World Mr Bukele was "a young president trying to capitalise on a popular image". "There is a lot of PR value in announcing something like this even if you haven't worked out all the details," he said.

 

Mr Grey cautioned more generally that a country adopting a cryptocurrency as legal tender would give considerable control "to a network that isn't stable, doesn't have accountable actors and doesn't have track record of providing the kind of price stability and liquidity that a currency is supposed to provide".

A unique and bold step

The plan announced by President Nayib Bukele would make the small Central American nation the first in the world to adopt the digital currency, Bitcoin, as legal tender alongside the dollar. It would be a unique and bold step, the first by a sovereign country, and that may well be part of the attraction for Mr Bukele, a young, media-savvy and very popular leader who worries Washington over his increasingly autocratic tendencies.

 

There are still many questions over how the digital currency would become the country's legal tender - a major overhaul of El Salvador's financial infrastructure would be needed with Bitcoin at its heart. But, in essence, it appears that is what Mr Bukele is proposing.

 

Much of El Salvador's developing economy is based on remittances from abroad and the move to a digital currency may allow family members to avoid the costly fees involved in sending money home each month. Either way, it is a move which is likely to bolster Bitcoin's image as the "currency of the future" and President Bukele's standing among his supporters as an innovator.

source: https://www.bbc.com/news/world-latin-america-57373058

 

On this breaking news, the El Salvador president Nayib Bukele announced a proposal to make Bitcoin legal tender. Not just legalized currency, but also a legal tender, to be used alongside other currencies like the US dollar. And with an apparent majority of allies in that particular country's legislature, the chances are quite high that such a proposal will be accepted without much internal resistance. How such a policy is going to be implemented via infrastructures, information dissemination, etc. may be discussed at a later time.

 

To make things short, El Salvador plans to stop putting all its eggs into one basket (the US dollar in this case, and fiat in general) by going into cryptocurrencies. And apparently they "don't trust themselves" into making their own crypto coin like what Venezuela has done before, so they'll adopt Bitcoin instead. Smart move IMO.

 

And cryptocurrency adoption will most likely not end to just Bitcoin. The possibility of adopting other cryptocurrencies like Ethereum and Tron is open, for more scalability options offered by other currencies Bitcoin currently has trouble with.

 

Details are provided in the link above.

 

This news is quite significant. Becoming the first country to fully adopt an existing cryptocurrency (NOT making a CBDC like other countries are attempting) has its own perks. For one thing, this paves the way for business involved in cryptocurrencies to set up operations in the country. Crypto miners from China in particular are currently seeking out possible safer havens due to alleged "persecutions" they've been getting recently, and if El Salvador can provide enough energy for these miners, it can become a prime crypto mining hub. Another thing is the local population becoming a potential market for crypto businesses. Remittances from oversees adds significantly to El Salvador's economy and crypto coins that can provide quicker and cheaper solutions than traditional transactions will become the fore.

 

One of the challenges to be faced is to how to educate the local population about Bitcoin and cryptocurrencies, and how to protect them from crypto-related fraud. Time will tell whether the measures to be put up by the government in the future will prove to be effective and resilient enough to withstand that challenge.

 

More analysis on this is provided on this link from Coindesk.

https://www.coindesk.com/bitcoin-el-salvadors-legal-tender

 

Edited by kyoukage01
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I also read the news and I was like after institution it is time for government to FOMO. This is really a good news for all the crypto adoption and the profile picture of the president is looking super bullish.

On 6/8/2021 at 10:26 AM, kyoukage01 said:

One of the challenges to be faced is to how to educate the local population about Bitcoin and cryptocurrencies, and how to protect them from crypto-related fraud. Time will tell whether the measures to be put up by the government in the future will prove to be effective and resilient enough to withstand that challenge

This is the problem in the reality because I don't think general public would be aware about the crypto volatility. Bitcoin such volatile asset it would really troublesome for those who don't understand the markets and the number of people belonging in this group is really big. Financial literacy should be the project that should run with this great move in my view. 

And, In twitter I have read that Nayib Bukele has the majority seats in the parliament so the bill would be passed easily.

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Posted (edited)
22 hours ago, Ridam said:

Financial literacy should be the project that should run with this great move in my view. 

That, or at least the local public should be made aware of the risks involved in using cryptocurrencies.

 

El Salvadorians can pick up on already existing information on the internet such as this forum, but it would be better if their government gives them the necessary push for them to learn the essential crypto-related information. A government-sponsored support hotline should also be in place for help in technical issues and being victimized in fraud. (Especially the fraud part, because scammers are already wagging their tails at the newest potential uneducated victims they can get.)

 

Edited by kyoukage01
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On 6/8/2021 at 10:26 AM, kyoukage01 said:

To make things short, El Salvador plans to stop putting all its eggs into one basket (the US dollar in this case, and fiat in general) by going into cryptocurrencies. And apparently they "don't trust themselves" into making their own crypto coin like what Venezuela has done before, so they'll adopt Bitcoin instead. Smart move IMO.

This is what I like the most 😉 ! People from the El Salvador will get opportunities to make the transactions directly by using the Bitcoin and it is really impressive approach as they do not need to create their own cryptocurrencies which would need more preparations and manpower having the blockchain expertise.

It is the perfect start to encourage the mass adoption of the Bitcoin no matter what biggest countries like China and USA are creating the FUD against Bitcoin. 

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20 hours ago, Whited35 said:

This is what I like the most 😉 ! People from the El Salvador will get opportunities to make the transactions directly by using the Bitcoin and it is really impressive approach as they do not need to create their own cryptocurrencies which would need more preparations and manpower having the blockchain expertise.

Which makes one wonder why other governments like Venezuela's haven't thought of this before. But instead countries like US and China are scrambling to get their own CBDC up and running because the don't want to be "bossed around" by digital currencies made by "questionable entities". LOL.

 

Along with what you've said, El Salvador probably picked Bitcoin for being the first and the most well-known cryptocurrency. Altcoins, on the other hand, may have yet to prove themselves as worthy alternatives. Ethereum is the most probable second choice of the local public. Third and subsequent rankings are up for grabs.

 

El Salvadorian should be having a field day now that the crypto market is currently in a state of fear despite this good news. Bitcoin is currently cheap at $36,000 , almost a half-price off the ~$60,000 from last month.

 

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23 hours ago, kyoukage01 said:

A government-sponsored support hotline should also be in place for help in technical issues and being victimized in fraud. (Especially the fraud part, because scammers are already wagging their tails at the newest potential uneducated victims they can get.)

Exactly bro. Although the literacy rate of the EL Salvador is nearly 90% but I think for those who have entered in the crypto field in this cycle I am sure they would face big problem with the bitcoin volatility. 

I am in dilemma that, how the products are priced there? Is the product that cost 100K satoshi today cost 50K satoshi next day because the bitcoin price pump? or it remains the same no matter what the dollar worth value.

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2 hours ago, kyoukage01 said:

El Salvadorian should be having a field day now that the crypto market is currently in a state of fear despite this good news. Bitcoin is currently cheap at $36,000 , almost a half-price off the ~$60,000 from last month.

But, we still need to see how situation starts to shift in El Salvador. Despite it is a good start to recognized Bitcoin as a legal tender, it does not force citizens to adopt Bitcoin. In addition, BTC price is highly volatile and we need to see, how El Salvadorian create a continuous buying opportunity of Bitcoin for the transactions. 

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Posted (edited)

This article gives us a picture of how Bitcoin can be operated in a small part of El Salvador and eventually the rest of the country.

Spoiler

At El Salvador's Bitcoin Beach, a glimpse of crypto economy

MARCOS ALEMAN

 

EL ZONTE, El Salvador (AP) — After El Salvador’s congress made the bitcoin legal tender this week, eyes turned to this rural fishing village on the Pacific coast. Known to surfers for its pounding waves, El Zonte has had the cryptocurrency in its economy for the past year.

 

Some 500 fishing and farming families use bitcoin to buy groceries and pay utilities, something the government envisions for the country at large. Bitcoin already was legal to use in El Salvador but its acceptance was voluntary, so the legislation passed late Tuesday now requires all businesses — except those without the technology — to accept payment in bitcoin.

 

El Zonte’s mini bitcoin economy 26 miles (43 kilometers) from the capital came about through an anonymous donor who started working through a local nonprofit group in 2019. Supporters of the financial change point to it as a demonstration case for how digital currency could help in a country where 70% of the people don’t have bank accounts.

 

President Nayib Bukele, who pushed through the bitcoin law, touts it both as a way to help those many Salvadorans without access to traditional banking services and as a path to attract foreigners with bitcoin holdings to invest in El Salvador, which is the first nation to make the cryptocurrency legal tender.

 

Experts are trying to figure out why Bukele is pushing bitcoin. They say it is unclear how the highly volatile cryptocurrency will be a good option for the unbanked and only time will tell if the new system translates into real investment in El Salvador.

 

Bitcoin, intended as an alternative to government-backed money, is based largely on complex math, data-scrambling cryptography — thus the term “cryptocurrency” — lots of processing power and a distributed global ledger called the blockchain, which records all transactions. No central bank or other institution has any say in its value, which is set entirely by people trading bitcoin and its value has moved wildly over time.

 

In El Zonte this week, construction worker Hilario Gálvez walked into Tienda María to buy a soda and snacks to share with his friends. Instead of reaching for his wallet, he paid through an app on his phone.

 

The store’s namesake, María del Carmen Avilés, said she is now expert in bitcoin transactions.

 

“When a customer comes I ask him if he’s going to pay with the application or in cash. The majority pay with the application Bitcoin Beach. I look for it on my cell to charge them.”

 

It doesn’t take more than two minutes.

 

“It’s easier than paying with bills,” Gálvez said. “I can buy from my house, do the transaction with the application Bitcoin Beach, and I just come to pick up what I need.”

 

Avilés notes that the volatility of the bitcoin can be a problem.

 

“People ask me if I recommend bitcoin, I tell them I’ve won, but I’ve also lost,” Avilés said. “When bitcoin hit $60,000, I won and I bought this refrigerated room for the store, but then it went down and I lost."

 

Román Martínez was a pioneer in using bitcoin in El Zonte. He said the anonymous U.S. donor heard about community projects through the nonprofit Hope House where he works and began working through another American who lives in El Zonte. Hope House shares a building with Strike, a Chicago-based start-up that has been working with Bukele’s government on the nationwide bitcoin launch.

 

A request by The Associated Press to interview Strike CEO Jack Mallers was not granted. In an email, the company said, “Strike’s app is meant to empower people in all countries, broaden the financial system to include those who have been excluded, and increase economic opportunity around the world, and that is at the heart of this effort.”

 

El Salvador has used the U.S. dollar as its official currency since 2001, and Strike said that adopting bitcoin "as legal tender will help reduce its dependence on the decisions of a foreign central bank.”

 

Martinez said El Zonte residents did not have bank accounts, had no access to credit and were forced to handle all transactions in cash. “Now they are small investors whose lives have been changed by bitcoin,” he said.

 

Some question just how much can be learned from the Bitcoin Beach experiment.

 

David Gerard, author of “Attack of the 50 Foot Blockchain," said El Zonte is an artificial demonstration.

 

At Bitcoin Beach, he said, “the bitcoins are traded inside Strike. They don’t actually move on the bitcoin blockchain or anything.”

 

Gerard said it appears to work because the bitcoin donor keeps pumping bitcoin into the village's system. “That’s not a proof of concept that works. That shows that you can trade this stuff if you’re not trading actual bitcoins and someone massively subsidizes it.”

 

Adoption had been slow in El Zonte, but took off during the coronavirus pandemic when strict lockdown measures kept most people from leaving home.

 

“Our donor made three deliveries of $40, converted to bitcoin, for each of the community’s 500 families, and they were trained to use the application and now it’s normal to buy with bitcoin,” Martínez said.

 

El Zonte even has a Bitcoin ATM, which gives dollars in exchange for bitcoin or takes dollars and gives credit in bitcoin.

 

Edgar Magaña was in town from San Salvador to convert $50 to bitcoin. He inserted the dollars into the machine and was surprised to see only $47 in bitcoin fractions credited to his account on his phone.

 

“They took three dollars commission,” Magaña said, adding that he had understood there was no commission. “This is like in the banks.”

 

To spur national adoption, Bukele said the government would create a $150 million fund to allow people receiving payments in bitcoin to immediately convert them to dollars, reducing the risk of holding the fluctuating digital currency.

 

Jessica Velis, who runs the El Zonte business where the ATM is located, said some people here are already receiving remittances from abroad in bitcoin.

 

Salvadorans received some $6 billion in remittances last year from relatives living abroad, mostly in the United States. Bukele has said adopting bitcoin could save on the costs of sending that money home.

Not everyone in El Zonte is sold on the idea.

 

At Olas Permanentes, one of the town’s most popular restaurants, customers have been able to pay using bitcoin. But when the waitstaff was asked if they use it, they all said no. Some said they didn't have higher-end cellphones needed to download the app, while others said they had doubts about how it worked.

 

“They pay me in dollars and in cash,” said one waitress, who declined to give her name.

 

Walking through town, a woman who only gave her name as Teresita, was asked if she used bitcoin. “Not me, I prefer to have the bills,” she said.

https://ph.news.yahoo.com/el-salvadors-bitcoin-beach-glimpse-041519619.html

 

23 hours ago, Ridam said:

I am in dilemma that, how the products are priced there? Is the product that cost 100K satoshi today cost 50K satoshi next day because the bitcoin price pump? or it remains the same no matter what the dollar worth value.

Good question there. I don't know how I can explain this well, but I think the relatively stable US dollar still dictates the price tag of the products. If someone wants to pay using BTC instead, El Salvadorians already have an app (Bitcoin Beach) that may show the exchange rate of USD to BTC during that time, and the customer pays the amount of BTC that is equal to the current pricing displayed on the app. Or that is how I think their transactions work anyway.

 

More information on the app can be found on the link I've just posted.

 

After the store owner/s get the Bitcoin payments, it is up to them whether they cash it out to USD immediately, or hodl and wait for BTC price to increase. They'll need to have an intimate knowledge of cryptocurrencies to get the most out of the BTC transactions.

 

21 hours ago, Whited35 said:

But, we still need to see how situation starts to shift in El Salvador. Despite it is a good start to recognized Bitcoin as a legal tender, it does not force citizens to adopt Bitcoin. In addition, BTC price is highly volatile and we need to see, how El Salvadorian create a continuous buying opportunity of Bitcoin for the transactions. 

Based on the new link I provided, apparently El Salvador considered Bitcoin legal even before it is to be declared as legal tender, thus some sort of groundwork has already been laid. El Zonte and Bitcoin Beach is a working model they can adopt to the rest of the country.

 

Edited by kyoukage01
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7 hours ago, kyoukage01 said:

Based on the new link I provided, apparently El Salvador considered Bitcoin legal even before it is to be declared as legal tender, thus some sort of groundwork has already been laid. El Zonte and Bitcoin Beach is a working model they can adopt to the rest of the country.

Looking impressive as it has been the first state-nation to recognize the power of this virtual currency. I have  been repeatedly telling, every nation of this world need to come into the conclusion of approving blockchain technology and the virtual currency because it is the future currency. 

I am surprised, this central American country has visionary plan to move forward, let's see what happens next. 

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It is a really great achievement for El Salvador and we hope that all countries will follow the example of El Salvador in this regard so that it becomes easier and so that all people benefit from cryptocurrencies

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Posted (edited)
15 hours ago, Whited35 said:

I am surprised, this central American country has visionary plan to move forward, let's see what happens next. 

Actually, something is happening. And it comes from an outside source.

https://www.reuters.com/business/finance/imf-sees-legal-economic-issues-with-el-salvador-bitcoin-move-2021-06-10/

LOL! IMF seems to insinuate that El Salvador should drop the whole Bitcoin idea and just stick forever to the USD instead!

 

El Salvador is getting to be a good test case for other developing countries to emulate, but some other entities don't like the potential change in status quo. Specifically, the "domino effect".

 

Edited by kyoukage01
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6 hours ago, kyoukage01 said:

El Salvador is getting to be a good test case for other developing countries to emulate, but some other entities don't like the potential change in status quo. Specifically, the "domino effect".

Your last line is impressive 😂 I tried to check mixed opinions made on the El Salvador's Bitcoin recognition case and have found this balanced article to check. You might also love to read this https://experty.io/bitcoin-as-legal-tender-in-el-salvador  Most of the guys are looking positive in that article.

No matter they are on the way to test the power of virtual currency through a level of state-nation, starting can be quite challenging but eventually, new era of financial trend will start to build up and it is what we expect to have due to cryptocurrencies. 

Now I'm loving to check the expert's based mixed opinions regarding this quake creating news from El Salvador 😂

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I am quite skeptical how this goes. And i am not even going to politics on this as i had ton of issues with them, but aside them i think this is just a publicity stunt for PR. They however don't have anything to lose.

 

Merchants would need to accept it as an official currency and how do you convince them to accept something that has been one of the most volatile assets out there? I am thinking that most of them are pretty hesitant and would make up excuses when it comes to time of exchange. And most likely nearly all the transactions would just convert it to back USD which is the official currency of El Salvador.

 

Bitcoin still has ton of issues to fix until most people on any country would accept it as a currency (ton of things are being done but we are still waiting). It acts more like store of value for most people, and even that is highly speculative with a value that can be manipulated by just one man.

 

That being said, this is how adoption starts, i don't have to like it and i am afraid this thing most likely backfires before it catches on. But it's all part of adoption cycle of something like BTC.

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Posted (edited)
On 6/19/2021 at 7:18 PM, rekter said:

That being said, this is how adoption starts, i don't have to like it and i am afraid this thing most likely backfires before it catches on. But it's all part of adoption cycle of something like BTC.

Remember when I mentioned the 'domino effect' on the post above? After writing that, this article came up a few days later.

 

Spoiler

Could El Salvador's bitcoin adoption trigger a domino effect in Latin America?

Brian McGleenon

 

Ernest Hemingway said change happens "gradually, then suddenly". Bitcoin advocates have adopted Hemingway's adage to explain how acceptance of the cryptocurrency will gradually accumulate until suddenly the world becomes a very different place. This prospect is beginning to unsettle global financial institutions, with Agustín Carstens, head of the Bank for International Settlements, notifying German media outlet Der Spiegel that “bitcoin is only good for two things, speculation and ransom payments'' and Andrew Bailey, governor of the Bank of England, threatening a slew of “tough love” regulations.

 

You will know a bitcoin advocate by the laser eyes motif on their Twitter profile. In early June president of El Salvador Nayib Bukele placed laser beams over his eyes on his Twitter picture. Then, on 9 June the Salvadoran Congress ratified a bill to make bitcoin legal tender, "gradually, then suddenly" the cryptocurrency is changing the world's economic landscape. 

 

The bill makes bitcoin a foreign currency in other countries, and could potentially exempt investors from capital gains tax. El Salvador’s move is being hailed as a significant development in the cryptocurrency’s 12-year history. However, the Salvadoran decision elicited a cool response from Gerry Rice, spokesperson for the International Monetary Fund, who warned that "adoption of bitcoin as legal tender raises a number of macroeconomic, financial and legal issues that require very careful analysis". 

 

But the contagion is out, and bitcoin pioneer Max Keiser claims El Salvador has set a precedent that “challenges global banking institutions”, who cannot abide a technology that “separates money from state”, and the disruption this would have on global allegiances.

 

Speaking to Yahoo Finance, Keiser suggested the motive behind president Bukele’s legislation was because, "El Slavador, like all its neighbours in the region, has been searching for a way to establish economic self-sovereignty for many decades". 

 

Keiser maintains that "because bitcoin is un-confiscatable and uncensorable, in a way that preserves sovereignty, other countries will follow in El Salvador's footsteps and join the bitcoin revolution". He predicts the next nation to catch the contagion will be Guatemala, home to 37 volcanoes that could harness geothermal energy to power bitcoin mining stations. Guatemala will look with interest at El Salvador’s recent drilling of heat-pump boreholes into its volcanoes, which president Bukele tweeted could “offer facilities for bitcoin mining with very cheap… zero-emissions energy”. 

 

However, the World Bank is not convinced and has refused a request from El Salvador to assist with implementing bitcoin infrastructure, “given the environmental and transparency shortcomings”. According to Professor Thorsten Beck of the University of London, in refusing its support “the World Bank is hoping to deter others from doing the same”. Further to this, a JPMorgan client note from 11 June stated that El Salvador’s ambitions, “may imperil negotiations with the IMF”.

 

The next domino to fall could be Panama, with congressman Gabriel Silva hoping to have a bitcoin legal tender bill in the Panamanian National Assembly “within a month”. Silva claims the bill will be facilitated by the nation’s constitution that “prohibits mandating only certain currencies as legal tender, which could facilitate the incorporation of bitcoin as a currency”. Also, on 7 June, national deputy of Paraguay Carlitos Rejala urged his government to embrace bitcoin.

 

The contagion is not limited to the Americas, speaking to Yahoo Finance, George Tung from cryptocurrency news platform Cryptosrus suggested that "Tanzania and Nigeria both seem to be following in the same path" because of a need to "improve their financial situation and break free of the threat of currency substitution". These African nations, who in the words of the IMF have “similarly situated” economies to that of El Salvador might circumnavigate the risk of dollarisation and embrace “the bitcoin standard”. 

 

President Samia Suluhu Hassan of Tanzania has called on the nation's central bank to "start working on the development” of financial infrastructure to make bitcoin legal tender. She has tasked the nation's central bank “to be ready for the changes and not be caught unprepared”. Further to this, writing in Bitcoin Magazine, Human Rights Foundation chief strategy officer Alex Gladstein said Ethiopia could become “the Norway of the future” and harness its wind and solar resources to power bitcoin mining.

 

But why would El Salvador and similarly positioned nations risk to imperil their relationship with world financial institutions? Keiser argues that "countries like El Salvador are now realising they can challenge the IMF and use bitcoin to achieve monetary sovereignty". Gladstein suggested bitcoin as an alternative to “struggling governments” having to adopt “the petrodollar as legal tender, and becoming a de facto US client state”.

 

El Salvador’s “bitcoin revolution” relies on every consumer having an internet-ready mobile phone to run transactions. However, data from Statistas found that only 33.5% of El Salvador’s population had access to the internet. There are also questions about what would happen to El Salvador’s experiment if bitcoin entered a bear market. Speaking to Yahoo Finance Stephen Kelso, head of markets at ITI Capital, said: “Bitcoin’s volatility presents a challenge to merchants and traders as a form of currency for payments.” He added that this volatility could deter “governments which utilise such a volatile asset as a primary form of purchasing goods”.

 

With economic woes forecast due to the coronavirus pandemic, governments are considering inflation as the only way to reduce the value of their debts over time. Bitcoin, with its finite supply of 21 million coins, could provide consistent value for consumers.

source: https://ph.news.yahoo.com/bitcoin-el-salvador-cryptocurrencies-price-latin-america-230140891.html

 

There are quite a lot of positive and negative points in that article that are worth pondering on.

 

Even if El Salvador didn't adopt Bitcoin now, another country will do it sooner or later. For Bitcoin to move to the next level of global adoption, it is inevitable that one nation should take that necessary step.

 

Whether President Bukele did it for the sake of his people or for his personal gain (of being remembered in history as a crypto pioneer) is none of concern for the rest of us. But how a nationwide implementation is going to be done smoothly is going to be a problem, because there is no such precedent AFAIK. Your concern thus isn't entirely without merit, because if El Salvador fails, global cryptocurrency adoption will be delayed for a long time as a result.

 

EDIT

UPDATE: September 7, 2021 has been marked as El Salvador's date of official recognition of Bitcoin.

https://www.reuters.com/technology/bitcoin-become-legal-tender-el-salvador-sept-7-2021-06-25/

 

Edited by kyoukage01
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New to the Cryptotalk forum? Here's something that might help you get started:

https://cryptotalk.org/topic/24401-forum-tutorials-tips-and-tricks-for-newbies-compilation/

 

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UPDATE: A few days is now left before El Salvador's anticipated official adoption of Bitcoin on September 7. Among the recent news related to the government's planning stage, the $150 million fund allowing for faster conversion of BTC to USD among the local population has received an overwhelming support from its Congress.

https://www.reuters.com/technology/el-salvador-congress-backs-150-mln-fund-bitcoin-ahead-adoption-2021-08-31/

 

Meanwhile, some El Salvadoran traders are having misgivings about the whole Bitcoin and cryptocurrency concept by arguing that they know literally nothing about it, and the government has taken little steps to educate the masses on the advantages and use of cryptocurrencies. IMO, one would wonder how come the traders did not try to educate themselves on their own initiative over the internet and especially on online forums like Cryptotalk instead of waiting for someone else to do the educating for them 😁 .

https://www.reuters.com/technology/we-dont-know-it-salvadorans-fret-over-looming-bitcoin-adoption-2021-09-01/

 


 

New to the Cryptotalk forum? Here's something that might help you get started:

https://cryptotalk.org/topic/24401-forum-tutorials-tips-and-tricks-for-newbies-compilation/

 

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That's really great that El salvadorian become first nation who accept bitcoin as a legal tender . they also offer free bitcoin ( From app ) for every user who download  that . they also construct few bitcoin atm machine in few places .

I was see a youtube video last night that someone used bitcoin as a payment method to purchase a land 🙂 .

 

 

Edited by gourav789
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On 26.09.2021 at 18:06, gourav789 said:

That's really great that El salvadorian become first nation who accept bitcoin as a legal tender . they also offer free bitcoin ( From app ) for every user who download  that . they also construct few bitcoin atm machine in few places .

I was see a youtube video last night that someone used bitcoin as a payment method to purchase a land 🙂 .

 

 

I completely agree with you. The Salvadorans did well, they showed the whole world that it is necessary to recognize cryptocurrencies on the world stage.
They also built mining farms that mine bitcoin on the volcano.


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Salvador has cheap electricity, because the country wants to use volcanoes to generate additional cheap electricity. Construction of additional power plants has already begun. In addition, the state gave a small amount of bitcoin to each citizen. So bitcoin is an official currency in Salvador.

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12 hours ago, Oksana Ksyusha said:

Salvador has cheap electricity, because the country wants to use volcanoes to generate additional cheap electricity. Construction of additional power plants has already begun. In addition, the state gave a small amount of bitcoin to each citizen. So bitcoin is an official currency in Salvador.

We live in an interesting time when small countries like El Salvador recognize bitcoin and make it an official means of payment. And how much bitcoin was distributed to the citizens of El Salvador?
Recently Vitalik Buterin spoke about the adoption of bitcon by El Salvador, he says that it was necessary to first conduct a survey among citizens whether they would use it or not.


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