Many will be aware that El Salvador has announced that they will be making Bitcoin legal tender, alongside the US Dollar. This means that Bitcoin will be required to be accepted as payment there. The new President, quite a young man, is savvy about this technology and sees it as a way to give his people – 70% of whom don’t have a bank account – a way of being able to do banking (send, receive and save money) without the high costs imposed on small transactions (often amounting to 50% of the transaction), especially on international transfers.
If enough countries do the same (many in South America and Africa are already looking seriously to do so) that could have wider implications for international finance and monetary policy. (I wonder if the CCP will pressure these countries to adopt their own Crypto instead?)
Anyway, here is an excellent interview of the President by a British Bitcoin blogger. (It’s in English because although the blogger has spent a fair amount of time in El Salvador he can’t speak Spanish. Typical Brit – everyone else has to learn English).
https://www.whatbitcoindid.com/podcast/why-el-salvador-made-bitcoin-legal-tender
3 replies on “Bitcoin as Legal Tender”
I think, the real issue on Bitcoin and its counterparts isn’t the volatility, but the loss of revenue/control/power that the traditional world banking oligarchs will lose.
The printing of the money by the current administration in America causes volatility. Wars, pandemics, regulations, natural disasters can all cause volatility. Think of the growing national debt. We pay astronomical interest charges only. Its a credit card that you are only paying the minimum required and still charging more and more to it.
There is significant push back from these banking entities and their world leader puppets. Think denial of governmental funding loans from banks and even disaster relief support being denied/withheld/delayed. Unless they actively deny the bitcoin and support the world banking system instead. Imagine the Biden, Quid-Pro-Quo scenario, world bank or no promised humanitarian aid package.
Why is your credit score so important in everything? Why does the system punish those not utilizing credit regularly by giving a lower score? There is even a balance of the right amount of debt/income ratio. Shouldn’t the lack of need for credit signify a better control over waste/spending habits? Instead someone whom hasn’t put themselves in debt has a lower score (thus higher interest rate) than someone whom has been paying interest/debt charges for years. It’s all a giant power/money/control system that works on people, economies, and entire countries. You have to pay to play….
Several “conspiracy” theories surround the world bank being often a driving force for conflict in countries whom don’t support/allow a world bank in their country until forced too. (i.e. Iraq, North Korea). Read was some literature (unable to locate) on this topic years ago, but now its 20,000 leagues under the sea.
With the volatility of most bitcoin’s, I think this is a horrible idea, but it is their country to ruin.
The App includes the option of immediate conversion from Bitcoin back to the USD, so there is no need to hold Bitcoin unless you want to “ride the volatility”.