Topic: El Salvador plan to make BTC legal tender - page 3. (Read 788 times)

should there be an example of success for a country that has adopted BTC? Isn't there already a Venezuelan country that several years ago experienced severe inflation that made the country's economy crumble? but it is the people themselves who are trying to find a solution by switching to cryptocurrency digital currency. in fact if there is research on it then there will be bright hope for BTC in the future.

They made history as they become the first nation to have bitcoin legalized and they are even promoting foreign people who are crypto enthusiast to go to their country and get a free citizenship. This will be huge step up for bitcoin specially if in case it works out well for their country. If ever they successfully got help from bitcoin to improve their economy, other countries will surely do the same thing and it will give off a chain reaction until crypto finally dominates the whole world. Still there will be a lot of adjustments before that happens yet there's a possibility we will see it in the future.

They are the first country to do so and make Bitcoin legal tender which means you can use it like fiat and every service provider have to accept btc from the customers.The small nation where many users have mobile phones btc is best suited decentalized currency for them and hold them in their wallets.The memes have also iniated with this like one of the meme was that El Salvador is now having most valuable currency globally worth $35k at this time.So this was one of the main step in bitcoin adoption which can be support to El Salvador also.

For the development and acceptance of bitcoin it's indeed help, it shows more and more people will adopt

and business will soon realize the help of this system, with this news, interest coming from those who are

not aware yet will increase, especially from those people who resides from El Salvador and neighboring

countries.

Anyway what the government of El Salvador is doing by legalizing bitcoin as a means of payment is a good thing,
I hope that with something like this, other countries will also make that decision.
because if that happens it is certainly good for the development of cryptocurrencies

Is not all the countries that will adopt the policy using cryptocurrency generally or Bitcoin in particular as a legal tender immediately, from my observation i notice that it's a something that will take place with a gradual process, and it can only come in existence when the caliber of people living in the same geographical environment or area, massively notice the important of Bitcoin.
Because this scenario is trying to let us know that using Bitcoin as a legal tender, it's obvious that any of their financial transaction should be carried out through cryptocurrency, which might be Bitcoin or altcoins.

There do not seem to be any special taxes in El Salvador that comes from the passage of that law, at least so far.  Of course, while implementing there likely are going to need to be monitoring of revenues and business and even to see if the El Salvador economy might be benefiting or being burdened by their decision to go in the bitcoin as legal tender direction.  Of course, any infrastructure changes cost money, so whether the government has to pay or if there are private companies paying or maybe some combination of shared funding would surely be implementation concerns for any seemingly BIG change like this.  You might need to research into this matter if you believe that extra tax burdens on citizens would be an issue.. because my off the cuff understanding is that there are no extra taxes and probably normie folks would be advantaged by some of the clarity that has been provided with the bill, but surely some businesses are going to have some burdens in learning how to accept bitcoin payments, so there may well be some learning involved (including making sure that they have some kind of way to accept payment - some technology involved, probably).



Seems like their decision to pass such a bill and the governments stated commitment to invest in some infrastructure in the direction of facilitating bitcoin usage has a lot of potential to help citizens overall, especially in the remittance department, and likely in other transactional and/or providing abilities to save areas as well.


Apparently they already had bitcoin beach going on for a couple of years, so I am not sure why they need to conduct some kind of education campaign prior to implementing the law.  In other words, why cannot they implement the law and educate citizens at the same time?  Sure, some people take longer than others to learn, but bitcoin has been around for 12 years and it's an evolving space anyhow, so seems to be no reason NOT to go down the "why not both?"  approach to the matter, no?

It's an interesting news that El Salvador is trying to make bitcoin as a legal tender in their country. However, what's the catch though? I hope it won't be taxed as much.

It's nice to read that amongst all the countries trying to avoid accepting bitcoin, there's a country willing to try to make it as one alternative for paying debt. Bitcoin can help them gather future investors which can result to slowly improved economy that can help their citizens.

I hope before they proceed to implementation of making bitcoin as a legal tender, they would educate their constituents about btc first. It's going to be a big leap for their country, but I hope it will turn out great in the long run.

Being a legal tender means that they are recognized as a way to pay transactions so I fully support this move by the government of El Salvador, although I am waiting on what's going to be the catch though.

El Salvador doesn't have a national currency and that is how they could implement this policy with such easiness. Before 2001, Salvadoran Colon was the national currency, but then they decided to go for Dollarization. For all practical purposes, USD became the national currency from that date. If another currency becomes the legal tender, the competition is for US Dollar and it doesn't directly affect the government or the economy of El Salvador. In most of the other countries, that is not the case and they have their own national currencies.

Whether this was done for political interest or not should not be the point, what people should consider is the fact that this news has put btc in the spotlight once again in the period where some undesirable fudders were being unprofessional,  

El salvasor is a small country which many probably don't know about but this single announcement has brought attention towards them and increases the awareness about this small country,  I say one step at a time, this is better than those countries banning btc all the time for selfish interest.

when other countries are still in the stage of considering bitcoin, but elsalvador seems to dare to appear first as a country that legalizes bitcoin. besides the tourism sector, I think that elsalvador's goods will be easier to reach all countries with this system. So hopefully in the future the country will be more developed

Let's see where this leads, although to be honest, it all looks a bit like pure populism. Although, the fact that the country is small and the economy, respectively, also gives some chances for a positive outcome of the experiment. Let's hope that the government of the country has provided for all the negative consequences of its decision and the positive consequences will outweigh the negative consequences. In any case, this is positive news and from the theoretical reasoning in the style of, and what would be, we will be able to see a concrete example of the embedding of bitcoin in the economy.

Good alternative has been made by their government since it can open more opportunities to their citizens and investments.

Now that they accept it their country got the spot light and this is a great boast not only with their financial system but in tourism also since I believe rich Bitcoin holder will possibly visit the Bitcoin friendly country.

Yesterday the bitcoin law was passed at El Salvador making it the first country to proclaim bitcoin as a legal tender, this is a step on the right direction and it is a sign of things to come, it is going to be interesting what happens during the next years, if El Salvador remains as the only country to declare bitcoin as a legal tender then there is a chance that a great deal of businesses related to cryptocurrencies decide to move to El Salvador bringing a lot of money to their economy.

https://www.cnbc.com/2021/06/09/el-salvador-proposes-law-to-make-bitcoin-legal-tender.html

It is interesting that El Salvador has made this determination, honestly the president of El Salvador has always been a very reasonable person and worthy of doing great things. In 2020 the pandemic was just beginning, it was the only country to lock itself up on time, and there was not a single infected, now if with this measure the country opens up in economic matters, since it will be the pioneer country in the adoption of BITCOIN, it is something that many countries do not have the decision and determination to do, this can bring much more volume to the market, a wise decision for this country.

Now as it says in the article, it is necessary to wait for the congress to only give the go-ahead and they can prepare for a large number of movements through Bitcoin, this can give a great pump to Bitcoin, it will undoubtedly be an engine to boost the economy and will have a great tool for them to cope with inflation.

These type of things are not what will change bitcoin world forever, these are small stuff that will not have too much impact on crypto, Venezuela type of places having the same issues were basically the same thing, they wanted to use crypto and I said the same thing there as well, these are not the instant impact stuff.

However what these do is that if it really helps el salvador and they actually use it in a way that will help the nation, then other small nations having financial problems will see this and they may want to test it as well, and in return you could have 10-20 nations like these who all use bitcoin as legal tender because it helps the nation a lot. That is what matters here in crypto world, the future, because we are not thinking about just today, we also think about 10 years from now, and whatever helps bitcoin in long term also helps us as well.

Yes this will definitely be a challenge for such country that isn't really technically advanced. For the beginning, the masses with less knowledge will suffer not only about trying to understand and use bitcoin but there will be alot of scam and phishing as you have pointed also. But on the long effect, bitcoin adoption will keep raising with this kind of news anyway.

We all need to remember one thing. This is not the first time that El Salvador has made a foreign currency as the legal tender. Back in 2001, as a part of dollarization, they gave that status to the United States Dollar. And ever since then, the national currency (Salvadoran Colon) has become more or less obsolete. So in case they make Bitcoin as the legal tender (which they haven't done yet), then there will be three currencies with the status of legal tender in El Salvador - Salvadoran Colon, US Dollar and Bitcoin.

Interesting.

In regards to the bolded, That would be typical paper fiat currencies. Does not really preserve value long-term.
If we use Gold as money (or other similar things) that's are difficult to print or requires hardwork to print "a lot of it" their supply will be limited and the money won't be losing value like it typically happens with paper fiat.
Gold or others like it will be good Store of Value for users mainly because their price would increase long-term, making holders more valuable money rather than less. Typical modern currencies tend to make holders/savers less money long-term even if interest is paid.