Topic: El Salvador has become the first country to make #Bitcoin legal tender! 🇸🇻 - page 124. (Read 40749 times)

JayJuanGee, sorry I'm late in answering this question. I have no reason to say that I have a lot of knowledge about the real condition happening in El Salvador regarding the legalization of bitcoin as a legal currency. I read some news about public protest there which may not be pure without political engagement between the government and the opposition. I can assume that this protest was carried out not only by the wishes of those who disagree with the legality of bitcoin, but that the current political opponent of the government may be able to form an opposition to this protest in the name of society.

The main purpose of adopting bitcoin as a legal currency in El Salvador is to reduce dependence on using other currencies such as USD for transaction between countries. There is a big benefit that government expect from this adoption which is that they can save a lot of transaction fees each year from citizen working in other countries like America.

Regarding taxes, I haven't gotten much information about it. But maybe it will be proposed soon considering it can help the country to increase its income, but this is just an assumption that may not be justified or wild speculation from me.

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Almost all new things decided by the government will invite public attention to support or reject, including the legality of bitcoin. So this may be the case of mass vaccination in all countries where resistance and protests are carried out due to lack of knowledge of what the government wants. But over time, it will gain a lot of support.

The President of El Salvador, Nayib Bukelele, promises to use the proceeds received from bitcoin to create schools in the country. The president's press secretary confirmed on Twitter that the president plans to create 20 new schools.

Seems like the Trust created to support the Bitcoin Law is a never-ending fountain of wealth … (until it’s not).

Whilst attending an event to lay the first stone of Chivo Pets (the pet hospital to be funded with the Trust’s benefits derived from Bitcoins rise in price), @Bukele announced that they’ve also now got "a few million" to build 20 fully equipped and modern schools in the country, also paid from the Trust.

Just as a reminder, the 150 M$ Trust is intended to give support to the Chivo System, facilitating the exchange between BTC and USD within the system. It therefore has an operational intent.
Now part of the USDs have allegedly been used to purchase more BTC, and since BTC has behaved favourably in terms of price increase, they consider they have a surplus amount over the 150 M$ bookkeeping of the fund. Some of this bookkeeping surplus is what allows them to justify taking USDs out of the fund, to pay for the Chivo Pets centre, and now for the 20 schools.

I either don’t have all the information, or this whole withdrawing business from the fund is rather risky. If BTC were to take a beat, the Trust’s bookkeeping could go well below the 150M $. I’d figure they’d pump more USD into it in this scenario, but that’s not how it should go. Let’s hope BTC just keeps rising and the above scenario doesn’t come into play…

See (Google translated from Spanish): https://diarioelsalvador-com.translate.goog/gobierno-de-nayib-bukele-construira-las-primeras-20-escuelas-con-ganancias-bitcoin/153350/?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=en&_x_tr_pto=nui
(In Spanish) https://twitter.com/PresidenciaSV/status/1455365925016936451


Note: They've also extended for another 2 weeks the petrol promotion, rising the discount for paying with Chivo Wallet from 20 cent to 30 cents per gallon.
https://twitter.com/nayibbukele/status/1455273202045890571

The authorities of El Salvador bought another 420 BTC according to the president Nayib Bukele bitcoin was bought on the fall of the price and he said that although the wait was long, but it was worth it, now El Salvador owns 1120 BTC or more than $ 68 million

This applies here pefectly well:
This thread is now 15 pages long, and will seemingly become one of the largest here on this section of the forum. Not many people will read all the comments before placing theirs, but if the quoted text states that on the 5th of June 2021 @Bukele was stating that he was sending the bill to the congress on the following week, it’s highly likely that things have moved on and made progress (not to mention that it’s splashed on the news pretty often).
 

That is a nice move Mr. President, now it's just a matter of time before the legalisation of bitcoin and make it a legal tender. I know that their congress will approve that bill because that's just a beginning to help and make El Salvador's economy lively. It may be much longer for them to understand how bitcoin works but atleast they're already starting.

I'm sure that the people in El Salvador right now starts doing crypto related business. Crypto enthusiasts and investor will start to look for some spot too.

This is fantastic news for Bitcoin holders, I'm glad that finally a country has the courage to legalize Bitcoin. But there is bound to be resistance to El Salvador from those who feel aggrieved by the legalization of Bitcoin.

Some people fear what they don't understand.  And more often than not, no amount of explanation is ever enough for people like that.  There's also the possibility of vested interests at play.  I'm fairly sure it's not possible to introduce something like this without pissing someone off.

Also, there are still plenty of idiots out there protesting against Covid vaccines.  I suppose you think no governments should be offering those either?

That comes off as quite a novel theory to me to be suggesting that a government has not implemented something properly based on the fact that there are protests.  Another question is about how much you seem to be presuming that the protests are representative that the "people" are against the way the law was implemented in El Salvador..

Regarding how taxes might be imposed upon the people, each country comes to its various balances in how they collect taxes to fund various aspects of governmental expenses... Do you have some specific examples of any recent government announcements regarding the various ways that you are speculating that the El Salvador government is going to tax bitcoin related transactions?  By the way, this thread is not about other crypto currencies, so I cannot see how it might be relevant to say that the El Salvador government is going to do x, y or z in relation to bitcoin merely if they were to announce some taxation policy in regards to some other cryptocurrency?  You might have to explain if there is some connection that you know about that is happening in El Salvador or you are speculating completely without any information at all besides some kind of a snip-it that you heard in Mainstream media.. which also might not necessarily be representative of what is actually going on (on the ground) in El Salvador.

If the government of EL Salvador had planned to legalize bitcoin as the legal currency in the country then there should have been no incidents of protest by its citizen. We have read a lot of news that protest were held at some point against the government's desire to legalize bitcoin as a legal currency. If the government had planned it well then the citizens should have accepted its decision without incidents like ATM burning.

Although it seem that now some El Salvadorans have accepted the legality of bitcoin, the government still needs to make further socialization effort so that it can function properly for its citizen. Regarding profit, the government can impose taxes on those who trade bitcoin or other cryptocurrencies as well as from those who run businesses or service such as exchange.

First Bitcoin is not the answer to every issue but it was indeed good news to every cryptocurrency community and enthusiast that the El Salvador government legalized Bitcoin as legal tender. However, the decision is not well planned if you ask me and if you read what DdmrDdmr said about some people taking advantage of Chivo BTC wallet if it's well-planned things like this won't have happened.

This is very good news for us as crypto users and El Salvador is the country that further legalizes bitcoin and becomes a legal means of payment to be used in the country, and this decision is well planned and I believe the Government of El Salvador has considered all the risks that will be faced by the country if bitcoin becomes a legal means of payment, If later the Government of El Salvador can take advantage of bitcoin well then the country's profits will definitely be obtained easily.

Apparently, some people were taking advantage of Chivo Wallet’s BTC to USD frozen value on the app, resorting to scalping trading techniques. The display and effective conversion value on the app was updated every minute, time in which some managed to peak at what the price was doing on other Exchange platforms, and buy or sell on Chivo knowing what the price was going to do on the next minute price refresh on the app.

For now, Chivo has decided to hide the conversion value on the app, and are seemingly working on having a real time price instead on the app.

I’ve also read that some users are reporting that they are now being required to wait for three minutes between TXs on Chivo Wallet. Nevertheless, the source is that of an opposition media, and I’d like to see some official source giving validity to this claim. I haven’t been able to see this mentioned as an official modification so far, so I’d take this latter claim with scepticism for now.

See:
https://cointelegraph.com/news/el-salvador-removes-btc-price-feed-from-chivo-app-to-crack-down-on-arbitrage-scalpers?utm_source=Telegram&utm_medium=social

(In Spanish):
https://www.elsalvador.com/noticias/negocios/usuarios-chivo-wallet-denuncian-cobro-comisiones-transacciones-bitcoin/892188/2021/
https://www.change.org/p/gobierno-de-el-salvador-nayib-bukele-transacciones-instant%C3%A1neas-sin-l%C3%ADmites-de-tiempo

https://twitter.com/chivowallet/status/1450190995581292552
https://twitter.com/chivowallet/status/1450190998542356481
https://twitter.com/chivowallet/status/1450191000979267587

One of the benefits is this one on where aside from minding about its real use case,you could really also have that benefit on making profits which is really able to be felt specially now that bitcoins price

had attained new all time high as of this moment and pretty much sure that they are really glad on whats happening as of this moment.Lets not just rush up on how things should be going

because adoption and recognition is something still on the move.What matter most here is that  we do able to see some progress.

President El Salvador's seriousness in legalizing Bitcoin and expanding its application in society to the field of air transportation must be appreciated.  Because honestly, he's the only one who doesn't seem to care about the political interests of the Bitcoin ban.  Today Bitcoin has rebounded and reached its new ATH.  The most impactful right now may be the people of El Salvador who already own Bitcoin because they will feel the benefits of owning BTC after this.

I’d say that there is a fair share of exaggerating the feat on the government’s behalf (*), at least in relation to the association to bitcoin. It is a chance to get some exposure though, and they are making the best of it.

For starters, @Bukele stated that Volaris is the first air company in the world to accept bitcoin. Well, airBaltic announced accepting bitcoin back in 2014, stating that they were the prima donnas in the affair. AirBaltic still accepts payments through Bitpay, so I figure it’s a standing and sustained claim (see https://simpleflying.com/airbaltic-accepted-cryptocurrencies/).

On the other hand, Volaris is Mexican. In El Salvador, we are talking rather more of a subsidiary (BTC payments does not apply to all Volaris as a whole). Nevertheless, under the recent roll-out of the Bitcoin Law, it’s not as if the air company could escape from accepting bitcoin anyway.

See:
https://www-presidencia-gob-sv.translate.goog/gobierno-del-presidente-nayib-bukele-propicia-que-el-salvador-vuelva-a-tener-una-aerolinea-propia-gracias-al-buen-clima-de-negocios-en-el-pais/?_x_tr_sl=es&_x_tr_tl=en&_x_tr_hl=es&_x_tr_pto=nui (GT from Spanish)

https://www.albawaba.com/business/mexican-airline-volaris-accepts-bitcoin-el-salvador-1451705

The President of El Salvador, Nayib Bukele, announced that the low-cost airline Volaris El Salvador will accept payment for tickets in bitcoins, this happened a month after the authorities of El Salvador issued a local branch of the low-cost airline Volaris a work permit in the country.

A few updates from the President of El Salvador Nayib Bukele on the use of the Chivo wallet and the further dissemination and popularization of bitcoin among the population of El Salvador.
People deposit much more US dollars into the Chivo wallet than they withdraw from Chivo ATMs.
So 24,076 money transfers were received in one day, which totaled $3,069,761

The 20 cent per gallon discount for payment made through the use of a Chivo Wallet (BTC or USD), has been extended until the 31/10/2021 (the original promo ended on the 14/10/2021).

The interesting thing, and fairer if I may say, is that they’ve now added Texaco and DLC to the promo. Texaco is the country’s dominant company by number of petrol stations, whilst DLC is the smallest chain, although looking at the info linked below, it looks like only a subset of the total amount are included in the promo.

See:
https://twitter.com/nayibbukele/status/1449181546292862976
https://twitter.com/nayibbukele/status/1449181950627942401

Strike, which is actively cooperating with El Salvador to implement the bitcoin law, announces the introduction of a new wallet function that converts direct deposits into bitcoins. Now anyone with a strike account can convert amounts starting from $0.5. Thus, Salvadorans have the opportunity to receive a salary, well, or part of it in bitcoins, of course not everyone will take advantage of this, but now there is such an opportunity.
Users can transfer part or all of the direct deposit to Bitcoin without a transaction fee. "Today, anyone with a Strike account, regardless of your employer, can receive a salary in bitcoins," wrote Strike CEO Jack Mallers. https://jimmymow.medium.com/announcing-pay-me-in-bitcoin-455f4fa0a0e4