Topic: El Salvador has become the first country to make #Bitcoin legal tender! 🇸🇻 - page 6. (Read 42126 times)

🇸🇻EL SALVADOR'S FIRST BITCOIN GOLF INVITATIONAL IS JUST TWO WEEKS AWAY!!


https://x.com/stacyherbert/status/1872334851962961966?t=y5QqTDicvFtxL6dsljuIVw&s=19

Big names from the world of bitcoin and golf will meet on the green in El Salvador on 10 & 11 January 2025 for epic good times as well as some fierce competition for a hole in one bitcoin as well as two extremely cool orange winners' jackets.


El Salvador will organize the game and I think it will be widely broadcasted, Golf is a very popular game and a lot of people will participate in it. I think they organized this game for the success of Bitcoin Holding and those who have more investors will definitely take more steps for Bitcoin Holding.
Because they have been successful using only Bitcoin to become known all over the world, and now they have organized Golf to get more success.

World's first Bitcoin nation scales back crypto dream


Source link: https://www.bbc.com/news/articles/c20e3l3xllwo


El Salvador has achieved the highest success by investing in Bitcoin alone, that's why they celebrated the highest Bitcoin logo in front of the people for the first time. Because they are currently ready to invest more Bitcoin, and will attract more people through this festival. The more people in El Salvador celebrate like this, the more Bitcoin holders will come, but I definitely like this celebration the most.

It was a nice moved by the government of El Salvador, and it has created more development into the land of El Salvador that is making other countries to do the same thing to make bitcoin a legal tender where people can use bitcoin to buy goods from the market and pay with bitcoins or funds without any challenge from the transaction, When the government announced it in the television to circulate the news to be the first country to take such decision to make bitcoin a legal tender, many people thought that El Salvador president is trying to use bitcoin to steal funds from government account not knowing that he mean well for the progress of El Salvador, Many foreigners has entered El Salvador country with different investment that will boost their country economy.

It’s still a bit crazy looking back and seeing that El Salvador was willing to be the first to do so. Certainly there were many across the world that didn’t believe in his vision and things certainly got worse at a certain point in time, which of course gave me even more pause to what he had planned and in store. Things are certainly looking pretty good right now.

This has been done by Bukele and indeed he succeeded. An important point that I would like to know is the details of the IMF and El Salvador agreement.  This will be useful for us because we will better understand and underlie what will be our argument in the discussion here.

I just read that the $1.4 billion lending policy will be disbursed over 40 months. This means that maybe this is not directly given to El Salvador. For another deal is that El Salvador agrees to
1. Improve its primary balance and help cut its debt-to-GDP ratio
2. Other details are improving the fiscal situation, growing the economy, lowering inflation, and managing short-term debt obligations.
3. There is no obligation to transact using Bitcoin.
4. Chivo Wallet will be phased out.

This info I got may be wrong, I'm happy if anyone fixes it. CMIIW


Source:
1. https://finance.yahoo.com/news/imf-reaches-agreement-el-salvador-202644549.html
2. https://www.bloomberg.com/news/articles/2024-12-18/imf-reaches-agreement-with-el-salvador-for-1-4-billion-loan

I don't want to piss in anyone's Cheerios, but...

A 'friend of mine' used BTC at McDonald's in El Salvador one time.  It was via the self-order kiosk.  It took the payment, but nothing happened.  Eventually, upon approaching the teller, he was told 'oh, that doesn't work.  You can pay cash here.' which he did.  He lost his BTC.

Pretty much everything used by vendors is Chivo and/or Athena.  It is possible to get one's money back when ripped off, but VERY hard to find and used support for this.  Even when there are flesh-n-blood helper staff.  Honestly, I would have to strongly entertain the hypothesis that at the very least the vendors taking BTC are given leave to scam people since I have seen no mention of the problems or solutions from the 'bitcoin office' who one would hope would be interested in such issues.

My experiments with use of BTC in it's various forms for street level transactions are complete, and I won't be using BTC much any more (whether the real power...the IMF...allows it or not.)  I've had great success using BTC for relatively higher end services and semi-formal business transactions thanks to convertibility at the cash machines.  Car rentals, drivers, etc, but I had the good fortune to be dealing with honest and reliable individual people.  Pretty good luck with the large corporations such as Walmart too.  But...

In order to have any sort of success there needs to be auto-refunds built into transactions for cases when the service provider (e.g., Chivo) simply does not inform the vendor of a successful payment and an alternate form of payment is used.  As we all know, Bitcoin by design does not support 'refunds' and once you sign a transaction it cannot be 'unsigned'.  This should be fairly easy for the 'private/open-source' sector, and for the quasi-state-sponsored efforts like Athena/Chivo to engineer if they had any desire to do so.  Of course there may be 'privacy' issues, but nothing about any of the options in El Salvador seem to have anything to do with 'privacy' including the ATM machines;  They won't play ball without a phone number, and these are all tracked.

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On the IMF 'legal tender' topic:  It is wall-to-wall 'El Salvador bought 11 BTC' copium on X.  It's enough to make a guy laugh out loud.   I highly doubt that the IMF or bond buyer's or anyone is going to be impressed by anyone's BTC stash or loan them any money based on it unless the stash acts as some sort of collateral.  So, at best El Salvador's financial class gets to gamble with derivatives of the stash.  Good luck with that.

What the apologists don't wish to talk about at all (and probably want to drown out with the above) is the IMF's demands that taxes be paid in USD only.  That is to me pretty much the defining legal concept of 'legal tender', and I would have to consider BTC simply not 'legal tender' in El Salvador any more without the ability to use it for taxes ('all debts public and private'.)  These things have very specific legal meanings, and it makes zero difference whether people actually do use BTC to pay taxes or not.

These things are meaningful to the more sophisticated operators higher up in the legal and financial circles of international law and geopolitics, and not really accessible at the lower levels.  I would have hoped that the likes of Herbert and Keiser would have taken this as an opportunity to teach deeper lessons about the international financial swamp, but instead they seem to have gone the opposite direction and used people's ignorance to divert their attention toward shiny and meaningless trinkets via some fairly base propaganda techniques.  I'm disappointed to be honest.

Nayib Bukele strategy of accepting Bitcoin through legal tender and accumulating it regularly was a bold move and he recently purchased 11 more Bitcoin.

Why he holding regularly, ignoring the IMF?
Curious to know the underlying depth.

El Salvador has accepted Bitcoin as legal tender, but not everyone knows how to use Bitcoin properly. That is why Nayeb Bukele has introduced an educational policy for Bitcoin education in schools for everyone from children to adults. A country cannot suddenly reach the peak of development, it takes time, although El Salvador lacks the technology for Bitcoin transactions, but they will definitely fill this lack of technology in the future.
However, now that the Bitcoin education system has been launched, the interest in Bitcoin education has become the most desired among almost everyone, and Nayeb Bukele has suppressed terrorists and is doing various other good works. However, the largest number of tourists has gathered in El Salvador, which is why their Bitcoin transactions have gathered the most.

That's how great they are at applying the rules to every citizen so that I, who do not live in El Salvador, feel how easy it is for them to play with payments.
If I am able to pay with Bitcoin, then the second party is ready to accept payment with Bitcoin.
In fact, for business people there, they can use transaction activities with Bitcoin payments as savings for their investments.
I don't need to look at other laws because with their implementation of the law regarding Bitcoin tender laws there, it is quite good.

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