Topic: El Salvador has become the first country to make #Bitcoin legal tender! 🇸🇻 - page 110. (Read 38892 times)

In my personal opinion El Salvador's postponement of the lunch of the Bitcoin bond because of war is out of the fundamental purpose of bitcoin this is so because Bitcoin is designed to be an anti-war agent that is why Bitcoin is developed in a highly decentralized manner and Bitcoin blockchain is rigid in other not to allow third-party involvement and to remain the decentralized digital currency that can survive any situation be it world war of whatsoever. I will strongly suggest the government of El 🇸🇻 Salvador should push through with the development since the Bitcoin bond is an integral part of the building of the Bitcoin city, President Nayib Bukele should as a matter of national economic interests act right, and not waste any more time.

El Salvador is an independent nations and US do not have any control over El Salvador, what US is doing is to check if there can be possible means bitcoin as a legal tender in El Salvador can affect US dollar and how it can be used in illicit activities. US is not yet saying these are possible but just to find possible ways it is possible and see if it possible to find ways to mitigate it. US do not have any control over El Salvador, US can not even sanction El Salvador because they want their dollar to be used in other countries to help the US dollar to stay as the dominate currency in the world.

This is what the fear of US is, I later have to think about it but I noticed US are just sensitive about it, check ways it can affect their nation but US have no control on El Salvador. If a dollar depending nation start to depend on bitcoin, to be truthful, that could raise fear in US because they want their currency to remain dominant.

New form of control over El Salvador by US government. US government have prepared a bill to regulate bitcoin usage in El Salvador. Until September last year El Salvador was completely dependent on US dollar for all its economic needs. To have financial independence it got into the bitcoin, and now the US government fear this change would affect some of their businesses. That bill was also designed to analyze risks associated with El Salvador’s bitcoin agenda and whatever dangers it presented to the U.S. economy. However President is strong to defend and he wants them to stay out of El Salvador decision.

Samson Mow’s new company JAN3 helping build Bitcoin City in El Salvador

JAN3 which is Samson Moe's new company is helping El Salvador to build bitcoin city. Samson Mow’s new company JAN3 helping build Bitcoin City in El Salvador. Mo, his new firm, JAN3 will work together with the president of El Salvador, Nayib Bukele and it's government to help in the establishment of bitcoin city which will use a geothermal power from a nearby volcanoes which will power bitcoin mining and the city infrastructure.

Not new though but another interesting news
60 Minutes feature on El Salvador's Bitcoin Beach will air Sunday
https://cointelegraph.com/news/60-minutes-feature-on-el-salvador-s-bitcoin-beach-will-air-sunday

The Próspera Economic Zone, which is essentially an island city-state in Honduras, with its own government, makes a statement that within its jurisdiction bitcoin and other cryptocurrencies act as a legal means of payment. And also from April 7, municipalities and local authorities are given the right to issue bitcoin bonds in full compliance with KYC and AML standards.

Source: https://prospera.hn/news/press-releases/próspera-announces-bitcoin-bond-authority-in-the-first-crypto-friendly-jurisdiction-that-is-fully-aml-kyc-compliant

Yes, I agree, bitcoin is providing an alternative means, it is even only the official alternative means to fiat payment in El Salvador. But even if Chivowallet is decentralized, this does not necessary mean El Salvadorans will adopt bitcoin more, it is true that many Salvadorans lack the knowledge to know what bitcoin actually which is one of the cause of low bitcoin usage in payment, but with time, with education, more people in El Salvador will use bitcoin.

To have control, I can not recommend a centralized wallet, but this is not the reason there are no much people using bitcoin for payment in El Salvador like once said, people due to lack of what privacy is have gone more to use a centralized wallet, see Coinbase and Freewallet and may other centralized wallets that people prefer, they do not care storing cryptocurrencies on centralized exchanges as well and never thought of data leak, exchange hack and never having complete control.

United States senete are on a bill to check how El Salvador bitcoin as a legal tender will affect United States, how it can be used for money laundering. I am thinking they are wrong about money laundering just because the bitcoin official wallet which is Chivowallet is centralized.

Not that I am recommending a centralized wallet, I do not use a centralized wallet so I will be able to have complete control over my crypto assets like bitcoin and I can never use one as it makes privacy not to be possible.

The major revenues generation of El Salvador is from tourism and even before Bitcoin's adoption by El Salvador, their tourism sector has been on the rise but not as pronounced as now. Most tourist centers in El Salvador are accepting Bitcoin alongside the United States dollars Bitcoin will only provide better alternative means of payment and most El Salvadorans are not yet familiar with the concept of Bitcoin so they find it hard and also for the fact that the chivo wallet is a centralized wallet which requires KYC it become a turn off to some Bitcoin users most especially those who value their privacy.

In El Salvador, Marchants can be paid in bitcoin, but the Marchant can decide to make the payment to automatically be converted to United States dollar immediately. This means that people can decide to pay in bitcoin or United States dollar, marchants can decide to immediately convert the payment to either bitcoin or United States dollar. Because legal tender in El Salvador can used for payment if people like it or not brought confusion at the start, not knowing it still work in a way people can choose to automatically convert the payment in either bitcoin or United States dollar. No one is forcing anyone to use bitcoin.

I just have this thinking that people, especially bitcoin users will want to just experience buying and touring with bitcoin, it is a kind of good experience. I think the increase in tourism in El Salvador will be more connected to the country that made bitcoin a legal tender.  Nobody also cares about what people are saying or what is happening, what that matters is that no one is forcing anyone to use bitcoin.

It took tens of years for majority to start using bank cards, it took years for people to start using NFC in smartphones for payments actively. Salvadorans had a lack of access to banking services so, as I understand, most of them didn't have even bank cards. So the results of starting using of bitcoin for about a half of year are IMHO fascinating. Give them time and they'll surprise you!

There are more statements mentioning the low direct usage of bitcoin by the people of El Salvador. Same time there is big progress in the recovery of different sectors once after the adoption of bitcoin. Morena Valdez, the tourism minister of El Salvador, has brought out information about the recovery of the tourism sector in the country.


The minister attributes this recovery to three factors.

• Handling of the Covid-19 pandemic in the country
• Investments that derive from the interest the country and its economic movements have awakened in foreign markets.
• The utilization of bitcoin and the interest it is bringing to the country

Tourism Minister of El Salvador Reiterates Effect Bitcoin Has Had on the Sector

Is there any official statement from the government claiming to have regretted of taking such decision? even after the adoption the bitcoin value run dip but El-Savador survived it. Atimes bloggers create news out of nothing, just to stir up controversies when they seem not to hear any update from añ event.


How can this be a problem, consider yourself buying a commodity worth of 0.05btc at 0.03btc isn't it pretty good on you own side, same it will be on vice versa if you're the seller but at this time you're loosing, the economy behind market is in the power of demand and supply, we can't expect a continuous increase in selling or buying price in one direction else market will not be suitable worth doing.


Even the fiat ATMs develop fault and tend to malfunction atimes and they are not found everywhere, they are being mounted on specific locations, this is normal because using the ATM is by choice where by you have your mobile internet or laptop to initiate or perform any transaction. And lastly were there ATM in fiat currency before the general acceptance of fiat currency as a legal tender? obviously No.

Government will want to protect their own local currency, it is people that should wake up and know the right thing to do like investing in bitcoin in long term. Countries do not have to make bitcoin a legal tender before citizens should know they can buy and hold bitcoin. Even the citizens of the countries that implicitly banned bitcoin can still buy, hold or trade bitcoin which is what that mostly matters. Only countries that totally banned bitcoin have little option because many citizens in such countries will not use bitcoin but nothing still stop people to use bitcoin in a decentralized way.

Because a country accepts bitcoin and friendly with it does not mean the government of the country is making bitcoin mandatory in such country.

I also hope that the countries that are experiencing economic crisis because of inflation, the local currency has almost depreciated, will soon accept and use bitcoin as a form of legal tender like El Salvador. Bitcoin will be the solution that can help them overcome difficulties instead of waiting for the help of great powers

Before that, the Russian government and Russian banks both didn't like Bitcoin. Their rapid adoption of bitcoin was the premeditated solution to the war.
Its very difficult for all countries to accept bitcoin and force their citizens to use it, unless it benefits them.

El Salvador is spending USD before it adopted bitcoin as a legal tender, not having the local currency of its own. I expect countries that do not have their own local currency to follow El Salvador. Some countries can be friendly on bitcoin adoption which is what that matters most. If some countries start making bitcoin a reserve, that is also part of adoption, this is what I would be glad to hear about next. If countries like Russia start accepting bitcoin for paying for oil and gases they are exporting, it is still part of adoption, but we do not know yet if this would be done by Russia, but I noticed bank of Russia hate bitcoin but Russia government have shown how they like bitcoin. What we mostly need is for countries not to ban the use of bitcoin and make their citizens to use it.

Yeah, using a centralized wallet for bitcoin is what we should highly appreciate (sarcasm). Am I mistaken about that there's still no info about the code of this wallet? New opportunities for Salvadorians is definitely good. But I'd not be so fascinated with bitcoin adoption in El Salvador to not to see when a centralized system using KYC is replacing a decentralized one. And I still remember the problems with Chivo several months ago. Bitcoin adoption in El Salvador is good but I don't trust Chivo for 100%.

El Salvador has made some positive moves to promote the use of the chivo wallets, I guess those using the chivo wallet enjoy various discounts from the government, and with so many government-owned institution payments using Bitcoin is allowed and are given special offers with low fee. The president of El Salvador is a young smart guy since he know how hostile some El Salvador citizens are towards Bitcoin adoption the best way to give Bitcoin the right acceptance is by making its payments on services cheaper and enjoying good discounts.

It sounds like the clinic is playing fast and loose with its own promotional rules. Which is not surprising, unfortunately, a lot of businesses all over the world do that. That said,the initial implementation of Bitcoin in El Salvador probably increased the incidence of such things, as a lot of unscrupulous businesses would take advantage of clients who don't yet fully understand how to deal with the new legal tender. I imagine that with time and as the population's understanding of Bitcoin and crypto wallets grows those incidents won't be happening as often. I wonder if the government would implement any further regulation too. Is there any regulation that they would?

I was reading some local press from El Salvador, stating that the Chivo Pet Hospital has attended over 9000 services in a month since its formal opening (averaging 300 visits per day). One thing to recall here is that each service is priced at a ridiculously low fee: 0,25$ in BTC, which is extremely low for the country.

The first of the below linked articles indicates that 100% of the service payments have been made using Chivo Wallets. Nevertheless, the 0,25$ in BTC per service seems to be a promotional price, for those that pay using their Chivo Wallet. Attempts to pay in cash are priced at private clinic service value (no indication as to the average price though, to compare).

There seems to be some confusion as to what the fee per service is for payments in BTC using a wallet other than a Chivo Wallet. The second referenced article below claims that, when contacting the call center and querying on the matter, they indicated that the promotional price only applied to payments made through a Chivo Wallet. Nevertheless, the promotional price was initially announced as applicable to any digital wallet.

See:
https://diarioelsalvador-com.translate.goog/el-hospital-chivo-pets-supera-las-9000-atenciones-en-su-primer-mes-de-funcionamiento/209388/?_x_tr_sl=es&_x_tr_tl=en&_x_tr_hl=es&_x_tr_pto=wapp

https://www-elsalvador-com.translate.goog/noticias/negocios/chivo-wallet-hospitales-veterinaria/930583/2022/?_x_tr_sl=es&_x_tr_tl=en&_x_tr_hl=es&_x_tr_pto=wapp

I think it should more be because of the war. Although, Bitcoin have proven itself to be valuable during war in the past and also in this present Ukraine war. But El Salvador may find it difficult at that time because they can be thinking the war could escalate into world war 3 which could be a good reason for the delay at that time. Bitcoin has been helpful during war but nobody knows what could happen if world war 3 begins, although not likely again. It should not be because of price dip, even if bitcoin price dip the more, it is a blessing because it would rise back.

As you've stated that El-Savador is a sovereign country, because it was able to maintain the situation even when it was tough enough but it survived it, the country have already set a global record and now a tourist centre for bitcoin activities.


I think another factor that might have led to the postponment is as a result of the dip in the recent price speculation and now that the market is going up again it much likely they may launch it earlier than September.