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Topic: Can developing countries follow El Salvador use Bitcoin? - page 6. (Read 839 times)

newbie
Activity: 29
Merit: 10
    I'm afraid not.
    link about El Salvador's recognition of Bitcoin:
https://bitcointalksearch.org/topic/el-salvador-has-become-the-first-country-to-make-bitcoin-legal-tender-5342087
as this article https://www.coindesk.com/president-of-el-salvador-says-hes-submitting-bill-to-make-bitcoin-legal-tender put it:
"the fiscally unstable and oppressively poor Central American nation, where 70% of residents lack a banking account. El Salvador’s gross domestic product was $24.6 billion in 2020, according to Statista."
Thus we can see the main reason behind El Salvador's policy:
1. it's poor, which indicates weak government and fiat
2. 70% of residents have no bank account
3. expensive and inconvenient cross-border payments
4. dislike for the exploitation imposed by USD on their fiat
It counts on the concrete national condition. some developing countries like China are rather different to El Salvador, so I don't think China will follow El Salvador, at least for a short term. and as far as I know, China has launched its own DCEP
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member
Activity: 126
Merit: 19
Since El Salvador became the first country to approve Bitcoin as a legal tender, it has become international news and has attracted attention from the market, especially the cryptocurrency market. Many countries are paying close attention to this big move.
Using Bitcoin in El Salvador can bring meaningful social benefits to many people who do not have a bank account and cannot access basic financial services. People can benefit from the potential of low-cost remittances and durable savings accounts that are not affected by money supply expansion and hyperinflation. And with the advent of the Lightning Network, using Bitcoin as a payment method has become more feasible.
Quote
“We build our own future. So why do we have to resign ourselves to a dystopic future?” said President Bukele. “This will be a huge game changer not for El Salvador but for the world. It’s beautiful to be part of a huge change in humanity.”
The whole world is watching the important first step taken by El Salvador. Using Bitcoin is not just a trend, other countries will eventually learn that Bitcoin can increase national wealth, and some even keep it in their treasury reserves. With Bitcoin the longer you wait, the rewards will start to decrease. Countries at a disadvantage may consider taking measures as early as possible to give them an advantage over other larger economies. So will more countries follow El Salvador to use Bitcoin as legal tender?
https://www.forbes.com/sites/lawrencewintermeyer/2021/08/05/could-developing-nations-follow-el-salvadors-move-to-bitcoin/?sh=e930afe28b70
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