Topic: El Salvador has become the first country to make #Bitcoin legal tender! 🇸🇻 (Read 40332 times)

As a legal tender individuals and companies are mandated by the law to accept Bitcoin except they don't have the necessary technological tools to carry out the transactions. So if I walk into a shop and decide to pay with Bitcoin, the laws says that they should accept my Bitcoin if they have what it takes to process the transactions. The El Salvador’s Bitcoin Law, and Article 7 is in public domain. The laws are clear and anybody can access it for better understanding.

I don't know the details of the restrictions and regulatory revisions that have been agreed upon by the IMF and El Salvador, but this purchase proves that El Salvador is still very open to continuing to accumulate Bitcoin as a state reserve. Amazingly, this purchase was made 1 day after the aid agreement from the IMF. Another good statement is that director Stacy Herbert said that El Salvador will continue to buy Bitcoin. I look forward to the official documents that may exist and have been agreed upon by the IMF and El Salvador so that we understand clearly.

It is true that since El Salvador made Bitcoin legal tender, they (the Government of El Salvador) do not require their citizens to use Bitcoin as a currency, but they do give them some flexibility in whether or not they can use it. From that it can be a lesson that the use of two currencies works well and for people there to realize the other side of the ease of using two currencies.

As for the regulations, I would say that in El Salvador it is not complicated although I don't know where the rules apply to large companies.

The obligation to accept payment for goods/services for businesses in bitcoins was prescribed in the article 7 of the "Bitcoin Law".
Probably, this legal norm was partially in effect in the country and many business entities did not comply with this norm and accepted payments only in dollars. But the country's legislators did not establish any sanctions for failure to comply with this legal norm. In my opinion, this state of legislation in this financial issue is quite normal. And such a practice of legally prescribed responsibilities of an economic entity without sanctions even in the form of an administrative offense or a fine, or a warning is of a recommendatory nature and allows developing such a sector of payments in bitcoin without actually breaking the law.
If, at the request of the IMF, this norm, as inoperative, is excluded from the "Bitcoin Law", this automatically changes the status of bitcoin as a national payment unit of El Salvador to just a certain currency, which is also used in all other countries in the same unofficial status.  And yet, making Bitcoin official is exactly what Bukele has been planning to do since the very beginning of Bitcoin legalization.
In short, I believe that Bukele has more to lose in the long run from fulfilling these conditions of the IMF agreement and from the fact that he is rather recklessly and radically limiting the use of Bitcoin both among economic entities and in government budget payments.

It is not that difficult to imagine.

Any company doing business in any country would have to accept their official currency (or currencies).  In the case of El Salvador, since August 2021, it has been the dollar and bitcoin, yet apparently they have not been very strict on such requirement in regards to bitcoin especially with smaller companies, yet if a company is a larger company, then they would be more capable of complying with such a requirement.. especially if they have several business locations in El Salvador.  Sure some McD locations might be company owned and others might be franchises, so it is not necessarily an easy process, even for a BIGGER company that might have operations that are not directly owned by the company but are operating under the company's name..

Imagine being called by the higher-ups in McDonald's to comply to accept BTC as the means of payment.. Great world we live in 

In fact, I do not like such a too compromising policy of the Salvadoran government in terms of practically canceling those achievements of the alternative financial system, which became possible in this country three years ago in connection with the legalization of bitcoin. Such a planned change in legislation, which El Salvador makes in order to satisfy the IMF's demands for the provision of the next tranche, as the abolition of the mandatory acceptance of bitcoin by business structures as a mandatory payment unit, in my opinion, simply threw Bukele himself as a triumphant and discoverer of an alternative financial system to the position of an almost ordinary, albeit super-popular leader of a small country. If the reduction of requirements for bitcoin payments in El Salvador continues, this will clearly play a minus in general for the country's image. Bitcoiners will turn away from El Salvador and, on the contrary, there will be a process of refusal from both tourism and the export of the latest IT technologies. And in the long term, El Salvador loses from this. I am not sure that Bukele has a good idea of ​​​​the future of his country.  But in my opinion, he began to make mistakes in global financial policy by betting only on the dollar as the basic national currency. And he makes these mistakes too early, only 3 years after the start of this experiment. By the way, this softening of the requirements for mandatory acceptance of bitcoin in payments, including in the tax system for businesses and citizens, automatically disavows bitcoin as a legal means of payment. Apparently, El Salvador's legislators will also have to change the constitutional norm on the status of bitcoin, adapting to this stupid, momentary, in my opinion, decision.
I think it would not be worth it so quickly, after only 3 years, to so shamefully retreat from the excellent start of the experiment.

El Salvador made an announcement on November 17, 2022 that they would buy one bitcoin per day. Naiyb Bukele's announcement is here.
https://x.com/nayibbukele/status/1593113857261965312?t=t4riOtaDN4BKJgT87TQ93g&s=19

El Salvador bought one bitcoin per day after Naiyb Bukele announcement, even after that announcement they continued to buy one bitcoin per day according to this rule but suddenly they changed the direction of their bitcoin purchases. Today El Salvador bought BTC11 bitcoins in one day.

Recently ie yesterday they took a loan of $1.4 billion dollars from the IMF and after taking this loan today they announced to buy BTC11 bitcoins.


https://x.com/bitcoinofficesv/status/1869899405391999015?t=2GerIUPd0GPxdkKJ_HQMng&s=19

El Salvador has just but 11BTC which is worth more than $1M to add to their bitcoin reserve a day after they made a loan deal of 1.4B deal. This has made the total bitcoin holdings of El Salvador to be 5,980.77 BTC, valued at approximately $580 million at the current price of $97,000 per BTC. El Salvador has gone beyond acquiring one bitcoin per day based on the rule set by Bukele to always acquire one bitcoin per day.

El Salvador planned to continue buying bitcoin in such manners, despite that before IMF agreed to give them the loan, El Salvador agreed to limit their involvement in bitcoin.

https://www.cryptotimes.io/2024/12/20/el-salvador-buys-11-btc-a-day-after-1-4b-imf-loan-deal/

The IMF Just Improved El Salvador’s Bitcoin Law

The IMF yesterday announced they have reached a $1.4 billion loan deal with El Salvador. In return, the Central American country that in 2021 made bitcoin legal tender had to remove some of its pro-Bitcoin policies.

I spent about three months in El Salvador around the time the Bitcoin law went into effect. I thought then that it was a positive development for the country, but there were aspects of the law that I strongly disliked. Exactly these aspects are now being removed.

Source link: https://bitcoinmagazine.com/takes/the-imf-just-improved-el-salvadors-bitcoin-law

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El Salvador has become known worldwide since it adopted Bitcoin in 2021, as it has chosen Bitcoin as the only way to reach higher levels. Which has been successful so far, although in the past El Salvador should have accepted Bitcoin for everyone.
Those who have accepted Bitcoin have benefited the most in the present, as El Salvador is now backed by any loan agreement.

El Salvador has been buying and holding Bitcoins continuously since 2021. The government of this country, Nayib Bukele, has gained a lot of popularity by investing in Bitcoin and has benefited a lot financially. I saw in a report that yesterday the government of El Salvador bought 11 Bitcoins, for $1 million+. Currently, the total Bitcoins purchased by El Salvador are BTC5980.76, they will buy more Bitcoins in the future, of course, they are fulfilling their goal. Since they are constantly buying Bitcoins, at some point they will have a large amount of Bitcoins in their capital and this will be interesting.

https://x.com/BitcoinMagazine/status/1869898617609159148?t=6eiaddspXXBFZoIitNskHQ&s=19

Amidst series of events and achievements with El-Salvador, it has been made official now that the centralized exchange Bitget is now permitted to engage on bitcoin services in the country https://cryptoslate.com/el-salvador-grants-bitget-a-bitcoin-license-amid-362-million-profit-boom/ this was endorsed with operational license, as it could also be recalled that El-Salvador have recently realized some tangible amounts of profits through it bitcoin investment and currently doing all it could in making the entire El-Salvadorans have more use case of this same bitcoin in their day to day financial economy, this will all turned a continuous development after which the government of El-Salvador considered engaging the people towards the active participation of the use of bitcoin for both the custodial and non custodial use as presumed, we should stay tuned as more innovative ideas for growth and developments in the use of bitcoin continue popping in from El-Salvador, before I forget, congratulations on this $108,374 all time high this noon, more are still cooking as well as the profits increases for all bitcoin investors who are active holders.
Congratulations!

He added another conversation to his Twitter profile.
It's still cool for El Salvador's President Nayib Bukele to be tempted to hold more Bitcoin and is determined to take it to such a high.


https://x.com/nayibbukele/status/1868468954873937991

It is not new news that El Salvador has recently adopted Bitcoin as legal tender, They did this a few years ago. As a result, they can pay for any product in their country with Bitcoin. Today Bitcoin once again reached a unique high, breaking its previous all-time high Bitcoin touched a new all-time high again today. El Salvador President Naiyb Bukele displayed their portfolio chart on his Twitter profile, El Salvador's Bitcoin portfolio topped $632 million.


https://x.com/nayibbukele/status/1868461590888194086?t=ocQgqBZ44VXs1EbhwXD-Zg&s=19

This is very good news for the crypto world, because with the legalization of bitcoin as a legal means of payment in Elsalvador, the demand for Bitcoin will automatically increase and the price will be more expensive, this will also have a big impact on other countries that have been hesitant to accept Bitcoib in their countries.
Hopefully in the future many countries can accept Bitcoin as a legal means of payment in the country.

^^^ Yes. The question is, how do you oust Bitcoin after you made it the currency of the country? And how do you do it and save face? One way is to turn the focus of the country onto something else. And this might be the best way. Get the people of the country to focus elsewhere, so that they forget about Bitcoin.

However, this might be a way to make El Salvador powerful in three major areas. El Salvador is strong in Bitcoin. And, since the turn to Bitcoin, it adopted the USDollar as a major currency in the country. So what is it doing with gold?


El Salvador Eyes $3 Trillion Gold Mine Beneath Its Soil

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https://www.newsweek.com/el-salvador-eyes-3-trillion-gold-mine-beneath-its-soil-1998797
That was then.

President Nayib Bukele is now calling for a reversal of the landmark ban, claiming that beneath the country's fertile soil lies an untapped fortune. According to Bukele, the small Central American nation sits atop an estimated $3 trillion in unmined gold reserves—a potential jackpot that could radically transform El Salvador's financial future.

"We potentially have the largest gold deposits per square kilometer in the world," Bukele declared on the social media platform X (formerly Twitter). He claimed that extracting just 4 percent of the country's gold deposits could generate approximately $131 billion, a sum equivalent to 380 percent of El Salvador's current GDP.
...

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I think that the information that the Salvadoran government will pass a law that will cancel the mandatory acceptance of such a payment method as legalized bitcoin by business entities is nothing more than a falsified information leak by the IMF, which is broadcast into the public space via the FT.
In fact, this will, in principle, require a revision of the constitutional norm in El Salvador that bitcoin is a legal payment method. But whether Bukele will take such a rather radical step is still a big question. He is certainly a flexible politician, but his international image as the first president of a country that has completely legalized bitcoin could be seriously damaged here.
I think that it makes no sense for him to trade such an image for some ridiculous amounts of loans from the IMF.

So let's see what he decides in the end.

However, if you have witnessed the most special occurrence in the cryptospace is bitcoin is not only financial. This is also community, social and political. Did Nayib Bukele buy bitcoin to become rich? It will be very much headshaking if your reply is yes.

I predict a united South American community under the flag of bitcoin. Bitcoin will help accomplish what Che Guevara has failed to accomplish.

The situation is sticky, to say the least.
But we need to believe in its result being positive.
El Sal is the master of their own fate. And they are right to decide what would suit them for the better.

That's how IMF manipulate certain countries and make sure that they are still in control. But good thing that what possible may happen there is they are just pulling out the bitcoin payment system on local merchant. They can still invest and do what they want from their money get from IMF.

So even if that incident may happen I guess it cannot give much negative impact to Bitcoin since El Salvador still known for its good policy made for Bitcoin. We don't know what they want to do with $1.3 billion they asked from IMF, but there's huge chance that some part of it will go to their Bitcoin investment.