Topic: will Argentina follow El Salvador? (Read 623 times)

Adopting Bitcoin doesn't seem impossible,almost every country would want to adopt Bitcoin but in their own way,Bitcoin adoption is difficult;different people with thier different speculatives about Bitcoin.Adopting Bitcoin is not something that should be done or a decision to be taken just so easily.The entire subordinates body needs to scrutinize the whole decision process and conclude on it.

Correct. Apart from inflation they need a hedge against stronger currencies, because they have a negative impact on their economies, not allowing them to expand outside their borders.

I think they’re not focused on returns here but rather on using Bitcoin as a hedge against inflation and a way to attract investors. For countries struggling economically, their policies should be more secure (low risk). They can’t just put their budgets into Bitcoin and hope it grows in the future. They need consistent growth in their funds, which means investments with real returns that they can control and evaluate in the short term. Some experts still consider Bitcoin a speculative investment, so why would they take such a risk?

Their country needs investors, and Bitcoin might help open that opportunity, but they need to turn this idea into reality first.

The problem is not that the bitcoin market is small and cannot have much impact on the country's economy, the problem here is that bitcoin is just a highly volatile asset/investment. It cannot create jobs, reduce unemployment or increase people's income...so it cannot solve any problems of a country's economy.


Look at countries with strong economies, are they interested in making bitcoin a legal currency or focusing on investing in bitcoin? Those countries don't need bitcoin and still have thriving economies. To have such a developed economy, governments focus on improving people's lives by creating more jobs, high incomes, finding ways to stabilize prices, fight inflation...not investing in a volatile asset like bitcoin to develop the economy.

People seem to be making a small mistake in thinking that a country's economy works the same way as an individual or a company's economy.

They as countries can not change their economic situations with Bitcoin. Bitcoin market is small and Bitcoin can not contribute huge weight to their national economic, it's reason.

They can make a more friendly legal environment for Bitcoin. Create Bitcoin adoption, legal tender, national reserves partially in Bitcoin, but it's only one piece of their economy. If they want to improve their economy, they will have to do more, and surely beyond Bitcoin. It can contribute good weights for small countries but with average and big nations in economic sizes, it won't help too much.

Argentina and other countries will be attracted with success of El Salvador but they must be realistic that with time and future marke cycles, Bitcoin will have lower ROIs than its ROIs since 2009 till now. Bigger market cap will always mean slower growth rate with time.

Argentina may be attracted to how El Salvador investment in bitcoin grew rapidly just within this few years they’ve adopted and bought some of them. They could possibly be looking for ideas on how to go about them also adopting bitcoin and profiting from holding an asses like bitcoin. El Salvador already got an edge over many countries that will want to follow in their footsteps in the future and that’s the benefit of coming to invest first when an asset is still in its low price and has the potential to grow bigger in the future. I like the move by Argentina and I hope they find and see the relevancy bitcoin can have to their economy and adopt it soon.

With the way the market is going through a positive transformation there is no way that it will not draw a lot of attention, so I won't be surprised to see other countries making moves to invest in bitcoin they saw the kind of profit that El Salvador made is enough for others to learn from, and am surprised that even Argentina is interested in doing bitcoin, and when they should have invested they did not take it seriously until Now that the price is up that is when they think is best for them to invest there is no point complain countries have money and they will do everything possible to look for a way to boost there economy, investing in bitcoin actually helped the economy of El Salvador they are the first country ever to actually do something like this so I love the fact that other countries are picking interest to invest so it is actually better for them that way so that they don't miss this opportunity.

So lemme get this straight; These dictators don't even do some proper adoption like what we all thought of? Pardon me if I'm acting too surprised. The truth is, I am fr fr!!

Do they really understand the purpose Bitcoin is made to serve? How long will they keep depending on other people's toil to enrich themselves?
They tried to sweep this under the carpet, but the evidences all year round that proved the authenticity of the coin was oozing in almost the same proportion. Since they can't practically take it down, they're building a system to manipulate and have everything under their control just like the fucked-up Fiat system?

Yes, I think that all countries that want to change their economic situation should definitely move towards Bitcoin adoption. What El Salvador has done, other countries will also do, but some will come quickly and many will come late. Any investment is risky, but those who accept that risk and invest can face profit or loss, but those who cannot take risks will never be able to make profit.


https://cryptoslate.com/el-salvador-president-nayib-bukele-donates-2-bitcoin-towards-building-1000-schools-in-honduras/

In the case of El Salvador, President Nayib Bukele increased his attention to Bitcoin adoption despite knowing that there were various adversities. The initiatives he took at that time have been very effective in the present. In addition to giving legal validity to Bitcoin, he has also inspired the educated people of that country to learn Bitcoin. He has also included a teaching program about Bitcoin in his educational programs. Due to which his country has now become more efficient in the use of Bitcoin. By following El Salvador, many countries, including Argentina and the United Arab Emirates, are moving towards Bitcoin adoption. They are trying their best to adopt Bitcoin as quickly as possible.

Before the US. dollar loses its position, before the de-dollarization process succeeds, small nations like El Salvador will stay with US. dollar. Even this fiat currency is very inflationary and its purchasing power falls deeply with time, El Salvador don't want to take risk by de-dollarize it by their own national efforts. They see the risk that be blacklisted by the USA. government.

About their national currency, it is not too good but if their government can work harder to improve their country, things will become better nationwide includes their fiat.

https://www.visualcapitalist.com/purchasing-power-of-the-u-s-dollar-over-time/

El Salvador's inflation rate isn't that high but isnt low either.

here's the history.

https://www.macrotrends.net/global-metrics/countries/SLV/el-salvador/inflation-rate-cpi


According to this article, 2% is what the federal reserves are aiming, so we could use that as a standard.
Why does the Federal Reserve aim for inflation of 2 percent over the longer run?

There should always be a pair, like USD/Bitcoin, and in that sense, Bitcoin will circulate while the government profits from the wallet they designed. But that’s just a small part of the picture. The bigger picture is their goal to capture global attention, and it seems they’ve succeeded in that aspect.

As for the economic impact, it’s not instant, it will take time. Just like holding Bitcoin, it requires patience.


Of course, they call it a hedge, not a solution to inflation. It’s still economic policy that will address that particular issue. The real solution lies in investments, as they create jobs and reduce unemployment, which ultimately leads to a decrease in inflation.

This is unexpected since we rarely hear news from this country, especially their movements or plans about BTC but this is great that they are now considering BTC too just like El Salvador and others out there because after El Salvador, I heard that there are then one and two countries that follow their footsteps. So that was 3 in total who made BTC a legal tender and Argentina is going to be 4th in the list.

Bitcoin is having an amazing property that is beneficial for those who adopt it, so yeah, definitely it can as well help a struggling country or its economy. This is the reason why many countries now are into BTC but it is just that they don't make it a legal tender yet. I think that decision is not easy but they might still get there soon. We only had to wait for it.

I still repeat the same question, how will bitcoin help their economy? What causes inflation in Argentina? What role will Bitcoin play if the cause comes from corruption, bad economic policies of the government? Can Bitcoin help fight corruption, prevent crime, help governments create jobs and bring income to people?

El Salvador's reputation is tied to bitcoin because they are known as the first country to make bitcoin legal tender but people need to understand that their economy has improved thanks to the economic policies of Nayib Bukele. This has nothing to do with bitcoin as they have only invested in bitcoin consistently since 2021 and have not sold bitcoin yet. Have you ever thought where do they get the money to buy bitcoin and what impact does bitcoin have on their economy when they never use it?

This is so true, it's called unrealized profit.

This is a very good analysis. El Salvador's situation improved because Bukele prioritized to fix one of the most important thing in the country, enormously high and brutal level of criminality. Compared to old days, El Salvador is doing way better in terms of crime. Low crime rate on its own, increases the confidence in average citizens, they feel safer and securer. This also increases confidence of safety in tourists, right? But in order to attract them, Bukele decided to fully focus on Bitcoin adoption because there are billions of dollars in this business and the more business he attracts in El Salvador, the better. Tourists and foreign workers will move in El Salvador if there is a low crime rate and good business opportunities. That's what is the key to Bukele's success. This 1 Bitcoin per day investment also does a great job at marketing the country.

Yep that's the scary thing if the centralized entity have owned almost all the coins, they can do whatever they want. They could turn Bitcoin like fiat system where they show there are a lot of Bitcoin in your screen, but whenever you want to withdraw your coins in big sum, they will not allow you to withdraw all the coins you own.

We should prepare for the worst, but at the same time we should support Bitcoin by using it without linking to centralization.

But with centralization, all its corruption creep in as well.
For example, what will stop them from running fractional banking? Like to only have 10 bitcoin but sell 10000 to people! That way it won't be bitcoin adoption that grows, it will just be a corrupt system ripping people off and taking their money giving them fake bitcoins in a fake application.

Another brilliant solution from El Loco (always admired president's nick, but didn't envy his citizens)?

Provide at least one positive experience from the adoption of bitcoin by a country so that they can use it to solve economic difficulties.

More talk about El Salvador's imaginary (unrealized) profit.

Ok. Let's imagine that El Salvador did receive profit from bitcoin. How has this affected the well-being of citizens and the country's economy as a whole to this point? The answer is: nothing has changed radically in the country from the time "before" investing in bitcoin and "after".

They recently boasted a zero deficit ( oversimplified) but I believe their austerity measures are the first time I have seen in my lifetime hyperinflation peeled back to a mere 2%. It was not like he went overboard, either. He focused on state spending like halving fleet and driver costs. More popular than ever, more so than Bukele really, and rightly so.

Proves you still need to go down to basic economics to fix an economy. Not saying he won't go the Bukele Bitcoin DCA route.  Just saying that won't fix endemic issues.

You must be one of the happier people in this regard, darxiaomi?

Its really strange on why people think about that since for sure that Argentinian government just think about making Bitcoin as other investment option just like what they did on other assets they acquire.

Some people maybe just got hype so much on this news and think about that this country will became dependent to Bitcoin.

Maybe people should lower down their expectation since if what they are looking after didn't happen for sure that they will get disappointed on Bitcoin. People need to be realistic and think about other better way since it will be so bad for them if they believe so much on any hype they read.

Bitcoin can not solely stabilize any economy, it can be one of the means to an end, meaning that it can be an added asset to a country's growth. I know that El Salvador, that adopted Bitcoin doesn't solely depend on the profits of Bitcoin because it is a volatile asset which can pump today and dump tomorrow. If Argentina, decides to go the way of El Salvador, and fully adopt Bitcoin, it might not be the solution to revive their economy but it'll be a way to go. The way I see it Bitcoin can be an alternative source of income for individuals, institutions and any country that wants to key into it, not a dependency as a major source of income generation.

Yes, Argentina's economy does not depend on Bitcoin and its value at the moment. No other country has such a dependence. That would be strange. You can still understand from the mining process, since this is the direction that is gaining momentum all over the world and no one will argue with the fact that it brings profit. On an industrial scale, this is simply a super profitable business. Therefore, I would consider this option with the Argentine authorities.

Just Incase, Bitcoin adoption is the only recommended adoption.Bitcoin has clearly shown that it is performing towards economic growth and stability.El Salvador engaged with Bitcoin when it was cheaper;but that wouldn't be an issue for Argentina honestly, Bitcoin is 100% economically trusted and it'l definitely measure up to great efforts, results and gains for Argentina, it's just needs an attempt.

just hope that they wouldn't fumble on the seasonal bearish/bullish sentiment of the market, instead if it's from the government perspective, they better just legalize crypto and opens up foreign investment as well as opportunity for their citizens. that'd be the great scenario, el salvador got the benefit of getting in early and make quite the fortune out of that, but since we've left that stage, I think the best way is giving flexibility from the legal framework.

however if they are so sure with the potential of BTC, there's nothing wrong with strategic bitcoin reserve that people have been talking lately  

For an individual investing in bitcoin, it can help them hedge against inflation and currency devaluation but at the national level, things are much more complicated and I don't think bitcoin will be effective in hedging against inflation. Inflation at the national level comes from government corruption, wrong economic policies leading to uncontrolled money printing...and adopting bitcoin will not solve these problems. Likewise, bitcoin cannot solve a country's inflation problem, nor can it be a solution to help a country avoid economic collapse.

We need to distinguish that personal and national problems are completely different and require appropriate solutions. We cannot use personal solutions to solve national problems and vice versa.

As far as I know the partnership between El Salvador and Argentina not about Argentina adopting Bitcoin as legal tender and never mention that. This cooperation clearly indicates that, Argentina is interested in the experience of El Salvador with Bitcoin but they are focus on strengthening crypto policies in the region and fostering innovation, not necessarily walking the same path of adopting Bitcoin as legal tender.

While El Salvador's legalized Bitocin proved to be profitable, it has also faced challenges in the form of IMF pushback and policy adjustments in order to secure funding that could be the reason and also Argentina still face public acceptance that not all of their politician are agree to adopt bitcoin as legal tender, the current focus appears to be on exploring crypto development opportunities rather than committing to Bitcoin as legal tender.

It is great to know that some countries are open to this market in looking for ways how to help their country in fighting the inflation or currency devaluation in their country. Would be a hard decision but I believe, they need to try paths outside of their traditional dealings in order to avoid their economic downfall without a fight.

As we have read, Argentina is being active on the approach towards the crypto market. With their crypto ETFs related opportunities, people will get positive notion from their government that this market is not all a scam. Where up until now, many people are having doubts that crypto is only used for illegal dealings.

Argentina Opens Foreign Crypto ETF Investment Opportunities

We saw how it is doing with those governments that did stock up Bitcoin on their holdings. We've been happy with how Bhutan did it very well and to the likes of El Salvador. And that's why, there will be for sure a significant impact to their economy if ever they do any of those.

I am not exaggerating it, I've said that it can help and stabilize their economy if ever they do. What they can do if they've got already some high inflation and if they keep repeating on the process? if something is done differently maybe there will be some visible improvement to them just as how we're seeing Bitcoin right now impact an individual life. But you're right about the latter part, the government has the biggest role in there in providing those things into its people. If they're not for the people even if they invest billions or trillions of their country's wealth in Bitcoin, nothing will be felt by a normie.

IMO, this is great news and will make more space for BTC's growth, especially for countries like Argentina. If following the steps of El Salvador is one of the ideal things to do, then this collaboration could help Argentina leverage Bitcoin to combat its ongoing economic challenges like hyperinflation and currency devaluation. Bitcoin can provide an inflation-proof alternative, and adoption of this as legal tender might increase citizens' financial empowerment.

Sharing knowledge on how to regulate is very significant in the agreement between Argentina and El Salvador because that means Argentina gets to benefit from the experience of what happens in El Salvador's path of embracing Bitcoin.

In fact, this decision could get more pros and cons even though it can be done because in the end, policies like this will make the impact of tensions from several parties take place when trying to implement the adoption and scheme of bitcoin as a legal means of trade. Although this can still be done, in the end, as I mentioned earlier, they must be able to convince their people to recognize that this decision can be right for maintaining their financial stability which is currently under threat due to massive inflation.

In addition, they also certainly have to be able to be a role model if they really want to carry out policies for bitcoin as a legal tender because after all they have to have bitcoin as their cash because it would be very funny when implementing a bitcoin scheme as a legal tender but Argentina does not have bitcoin as a reference for payments like this.

BTC can only help a bit in such matters, on a bigger scale like the Argentinian economy.
The main effort goes from other spheres and directions - and BTC can be only a little step forward in that direction.

Miley wants to at least somehow adhere to his election promises, but it will be much more difficult to implement them in a country with a much larger population. Argentina is trying to take some steps (like buying and selling bitcoin in banks), but this is simply a demonstration of the state's loyalty to bitcoin, and frankly speaking, I would not want to go to a bank to be able to buy or sell bitcoin, for this I would be enough of a crypto ATM, or any physical exchanger.

What role will Bitcoin play and how will it work to reduce inflation in the Argentine economy? If they just need to use assets that can hedge against inflation, then bitcoin is not the only asset that can do that, gold is also a very good asset to hedge against inflation. Why didn't they use gold sooner to hedge against inflation?

I am not against or unhappy with them legalizing bitcoin or wanting to make it a legal currency. But we should not exaggerate that bitcoin can save a country's economy, especially those with bad economic policies, corrupt governments...causing serious economic disruption.


If the government continues to be corrupt and not care about people's lives, not creating jobs and providing welfare for the people...adopting bitcoin is just an excuse to cover up their corruption and failures. Bitcoin is not a panacea for this world.

It can be a good help to stabilize their economy because they've got so much inflation in there. And as we all discuss what Bitcoin is as a hedge against inflation, that might be a consideration for the government of Argentina. But with these news, we shouldn't celebrate too early but we all know that they're coming to join us and adopt it as well. It's only a matter of time that the next country that shall adopt Bitcoin whether as a legal tender or as a reserve or an open asset to them without having a blockage to its people is a good news.

Argentina had been experiencing huge economic difficulties before the new president, but after Javier came to power, everything changed radically. The indicators for many parameters have improved significantly. At the moment, it cannot be said that the country is in economic decline. Rather, on the contrary, it is flourishing under Javier Miley.






This data alone shows that the person is not just sitting around. If he also puts forward something positive about crypto, we will see good growth dynamics.

It is difficult for Argentina, an economy superior to El Salvador, to easily adopt bitcoin from such a prominent perspective as official currency. I believe that political ideas are going in other directions, also positive, but not of that caliber. On the other hand, these two presidents share ideological "ideas" that bring them together, and that is perhaps the true situation in terms of immediate benefit. In any case, Argentina is one of the countries in the region that has always been linked to bitcoin.

Even though El Salvador has recognized bitcoin as legal tender, but they still use USD as their currency along with bitcoin, bitcoin is not the only currency or the only option. There are no reports from them that tell us that bitcoin is being used as a popular currency there. Also, the government of El Salvador is investing in bitcoin and they have no intention of taking profit, which makes me wonder how bitcoin is impacting the improvement of their economy.

We should be realistic that adopting bitcoin as a national currency will not solve the problem of inflation or improve the economy.

It all starts with a small step, and eventually, when people see positive results, that’s when they go big. I’m hoping Argentina will follow El Salvador’s example. Declaring Bitcoin as legal tender could already have a huge impact on the country’s future. As we move forward, innovation after innovation will continue shaping the digital world, and as more people adopt Bitcoin, concerns about risks will gradually fade.

I’m bookmarking this thread and hoping to see some positive updates soon... like news that says, "Argentina declares Bitcoin as legal currency." I’m curious how other countries with similar economic conditions would react.

There was a time I was looking for the current economy situation of El Salvador to know the cost of living and inflation level with other countries but I could not get solid information so I left it. And for now Argentina has not adopted Bitcoin has the legal tender so it is still far from El Salvador. And it is not only Argentina that is on the pipeline but they are more countries like to join El Salvador to invest in bitcoin. There will be a time that, countries will compete on bitcoin investment and at that time, countries will invest heavily with big amounts and that will make bitcoin to skyrocket to the moon. For now we can say anything until we see them investing.

I think this is just a first step which may lead to other fruitful ones in the future, the more they are into this and making the use of bitcoin affordable by enabling their country for its use, the more they will also be getting closer in making it a legal tender like the way El-Salvador did, then we could boldly say that they are learning something from them, once the people feels the accommodative presence of the government regulation on the use of bitcoin over every crypto entities there in Argentina, then it will be more acceptable and well utilized by the people and i know, every other advice will be in consideration once coming from El-Salvador.

Given Argentina's repeated problems with inflation over the last half century they need to do this.  They need to do more than this, but this is a start.

Hmm, most countries are going to follow the same trend now, sooner a list of countries is gonna be on board with accepting Bitcoin in different ways, I'm shocked that MNS rejected Bitcoin for their balance sheet, not sure What's Amazon is going to do but It seems like Bitcoin is going to replace the world assets ranking for MNS soon.

Javier Milei is a libertarian who I doubt will force businesses to accept bitcoin, as El Salvador does today,


That they can buy bitcoin for their reserves I believe, but what he says in that quote is that people can use various currencies or forms of exchange. According to his ideology it will be the free market that will end up determining which one people use.

It is better to wait. If the news is more likely to be true, then it is good news. I don't think it will be an easy thing to happen because there will be pros and cons just like what we have seen with El Salvador.
In terms of making Bitcoin a legal tender, it is not 100% economically successful as expected if the Bitcoin owned by the country is not sold for profit. From the news, El Salvador will not be selling a large amount of Bitcoin it owns.
If that is the case, then where will the profit come from except for good economic management by the President.

It is difficult to conclude from just this piece of news, I read it and very little has actually been revealed.

What we know is that the two regulatory bodies are going to share information that they already know. Now how they are going to use this vast information, only they know.

Considering the fact that they want to join forces and bring cooperate in developing the digital assets and the fact that Argentinian president is open to bitcoin, maybe the OP's ideas will bear fruit.

It's never too late, and they should take a different approach compared to El Salvador. They don’t necessarily need to invest in Bitcoin directly; simply making it a legal tender and implementing investor-friendly policies would already be a great step toward boosting Bitcoin adoption.

If he doesn’t take action, then a private entity will probably step in with his approval. This is no different from exchanges, it’s a wallet that lets you convert your Bitcoin to USD and connect it to your bank account. I think it’s safe because it’s regulated, but of course, you’ll lose some privacy. That’s the trade-off when Bitcoin becomes part of a regulated system.

The point is, as long as adoption continues to grow, it’s good for the country and the overall ecosystem. Investors will benefit because the demand for Bitcoin keeps increasing, and it’s working as intended. What we can do is separate our long-term investments and think creatively to maintain the privacy we want with our holdings. That way, we balance both security and freedom.

Although in the end adopting bitcoin has become one of the very good alternatives but in the end looking at the current conditions it will definitely take time to gain the same momentum as El Savador if Argentina does the same thing which means it will take longer for them to be able to get the same benefits or even more as El Savador is currently getting.

The problem is can Argentina wait for that to happen because looking at the tremendous impact of inflation now Argentina is actually in great danger and any policy including adopting bitcoin will eventually have a much greater risk of exploding pros and cons in the country.
El Savador can be like now having gone through such a thing at the beginning and lucky actually they are and adopted bitcoin at a price that is actually much lower when compared to now so for now the adoption of El Savador is not too much about their society, but things like this can be inversely proportional to Argentina because indeed a wave of pros and cons will definitely occur and the government must be ready to dampen it if their decision is ready to adopt bitcoin.

I think the very reason why a country would declare Bitcoin as legal tender is to attract investors. They aim to build a thriving crypto industry within their borders. Since moving money (Bitcoin) becomes much easier with such policies, investors can transfer their funds without issues

A good example is  Dubai, they introduced a Bitcoin-friendly policy by removing taxes on Bitcoin transactions. Their purpose was to attract investors and innovators to their country. Similarly, if Argentina decides to make Bitcoin a legal tender, it could boost investor confidence, which would, in turn, help improve their economy. We know that if a country is poor or struggling, they need foreign investors to stimulate economic growth, so Bitcoin-friendly policies could help in achieving that.

Crypto taxation in Dubai for expats: A quick guide

I wonder if he will do it the same way as El Salvador meaning to introduce a centralized custodial wallet like Chivo that people would have to use for their bitcoin storage and payments. Meaning full government control over people's money like the banking system that only carries the name "bitcoin".

If needed - of course, gov would choose their needs other than BTC. That's normal.
But El Sal and its president are smart - so they balance the situation out by that.
After he is gone - we would see how it will work out.

I equally taught of that too,  at first sight of this thread. Because as we all know that bitcoin investment is an investment that permit an investor to Accumulate bitcoin with the amount he or they can comfortably spend without been affected.  And it's often a long time investment. I am on the opinion that only country with more stable finance should follow suit with El Salvador but not a poor developing country.  Because they will sell their bitcoin without being met their target. All they need now is to invest there money on a any resources and use the revenue generated from it to buy bitcoin and stack.

I agree with you.
Truly, BTC is no magic wand, and it would be only a one-step-at-a-time type of thing - it would only help a bit in the overall situation of a country that's already in problems.
(p.s you've got a typo, probably, you repeated yourself).

Either a struggling economy country or not, the need to adopt Bitcoin for not just for legal tenders but upholding for investment and store of values is very necessary of considered the potentialities of Bitcoin to how it has stabilize a hope in the future for its holders.

And I must say... Countries foreseeing Bitcoin as a restoration to elevate their economy system don't have to jump in to adopting it just because they have heard good news about some countries like the El Salvador being benefitting hugely at their legal adoption of Bitcoin.

Hence, due processes should be accorded by their logistics planners and their economy jurisdictions so that they don't end up crashing their economy at the course of leaning their revenue generations on Bitcoin only and mismanagement of their forebeing economy structures.

Unless the reason is to use Bitcoin as a reserve or part of an investment fund, adopting Bitcoin as a legal tender will not help countries in solving their financial problems, especially since individual investments may not exceed $10,000, but it may help pension funds or investment funds improve the return on profits.Unless the reason is to use Bitcoin as a reserve or part of an investment fund, adopting Bitcoin as a legal tender will not help countries in solving their financial problems, especially since individual investments may not exceed $10,000, but it may help pension funds or investment funds improve the return on profits.

I support countries legalizing bitcoin but I want to say that making bitcoin a legal currency will not improve the economy and bitcoin is not the solution to improve the economy of any country, including El Salvador. As pooya87 said, El Salvador's economy has recovered and grown significantly in recent years because Bukele's sound economic policies have paid off. This has nothing to do with making bitcoin legal tender as they have not sold their bitcoins yet.

Additionally, there is notable news that El Salvador is looking to borrow $1.3 billion from the IMF and in return they need to change some of their policies on bitcoin. If their economy is really better off thanks to bitcoin, why do they keep borrowing money from the IMF? And I wouldn't be surprised if they acceded to the IMF's demands in exchange for a loan.



https://cryptodnes.bg/en/el-salvador-to-scale-back-bitcoin-policy-in-exchange-for-1-3-billion-imf-loan/

Nothing is impossible, it seems.
From taxation and fees for BTC to reserves, and so much more.
Interesting to see whether some countries would choose to do something besides BTC.

Nice and steady. And the adoption of BTC can't be done the same way in each country - Argentina needs to find its own way first and foremost. And get at other problems too, so that the BTC would even bigger cherry on top, as pooya87 said.
Nevertheless, it's a welcomed development. And I see more and more of them during this cycle.

That's a great update since somehow this give some sort of hope that there's a huge chance that Argentina will take some good steps to adapt Bitcoin just like what El Salvador did.

Since last June there's some sort of clarification released by Forbes towards this issue.

It could be just paper profit for them right now, if I'm not mistaken, Argentina has a new government under President Milei’s. Obviously though, he had a very hard task ahead of him as Argentina has been running in fiscal deficits for more than a decade now. So their economy are not that stable to say that least.

One thing to note though that Mliei is touted to be a pro-Bitcoin, like El Salvador's Bukele and that could be the similarity between the two.



https://x.com/JMilei/status/1803462625893704118

So I wouldn't be surprised to see Argentina having BTC on their balance sheet as well, just like El Salvador.

Do you have any data on this? As far as I know, El Salvador is the only country that has used its national budget to invest in bitcoin. Although their investment is profitable, one thing we need to know is that they have been continuously buying bitcoins for years and have not sold any bitcoins. So how can we say that bitcoin is positively impacting and helping their economy improve?


Also, where will economically struggling countries get the money to invest in bitcoin, and what will happen to them if a bear market suddenly hits and lasts for years?

By the way, to improve a country's economy, the government needs to take action and come up with reasonable economic policies to improve people's lives, fight corruption...Don't be naive to think that just relying on a volatile asset like bitcoin can improve a country's economy.

They call it unrealized gains. If "El Salvador" were a person or entity living in Denmark, the government would likely tax them on that, which might force them to sell their holdings. Denmark isn’t exactly a Bitcoin-friendly country, as they aim to tax unrealized profits heavily.

Denmark to Become First Country to Tax Unrealized Crypto Gains

Almost every politician is waking up to the fact that crypto is mainstream, and is now here to stay. Most big coins are already established and aren't going anywhere. Bitcoin, Ethereum, XRP Tether Monero etc. Each have their own use cases for society.

Milei is known as a Pro-Bitcoin polititcian before he was elected as a President of Argentina. With his adminstration, Argentina will have more Bitcoin and cryptocurrency friendly but will they do same things like El Salvador, I don't know. The national economic sizes of Argentina and El Salvador are different, with Argentina has a bigger economy.

Milei will have more problems to solve, more challenge to pass through, to do big policy changes in Argentina. With success of El Salvador and Bhutan, Argentina and other countries with Presidents who are pro-Bitcoin and pro-cryptocurrency can more seriously investigate those successful cases and try to learn from this, apply successful strategy for their countries.

Sorry to say that doesn't mean Argentina can follow the economic growth that El Salvador is experiencing now. I mean about adoption it's a good thing but with Bitcoin currently at its highest point maybe Argentina needs more time. El Salvador is a country that has full faith in Bitcoin since the beginning, and bitcoin was at its lowest level at that time. El Salvador is now enjoying the fruits of its labor, you know yourself if someone who bought under 50K and someone who bought over 100K their fate can't be the same.

Since El Salvador only owns/hodls bitcoin and they are not selling it, you can't really say they made a  profit.

Even though it is a cool development but I have to say that things are not that simple that if a country with economic problems adopts bitcoin, it would magically help. It may even cause more problems if not done correctly and without fixing other problems.
Think of it as an individual with lots of debt borrowing money to invest in bitcoin and then bitcoin crashes and they have to panic sell and be in an ever bigger debt.

El Salvador situation improved under Bukele not because he adopted bitcoin but because of hundreds of other good decisions he made like solving some of the fundamental problems in the country like the gang problems, the corruption, the attracting of foreign investment, etc. Bitcoin was like the cherry on top. For example as Bukele improved the country's security and started attracting foreign investment, he also did it through bitcoin.

It is the same with Argentina. Bitcoin is not the magic solution to solve decades of economic problems. The crazy man in Argentina has also done a lot of additional damage ever since he took office to the point that Argentinian inflation went to almost 300%.
Although some claim that this "shock therapy" is going to help in the long run but still bitcoin can only be that "cherry on top" not the solution itself, and only after dozens of fundamental issues in Argentina are solved.

I just stumbled upon this news, and I find it very positive and worth sharing as it might signal that Argentina could soon follow in El Salvador’s footsteps by making Bitcoin a legal currency.

From what I’ve read before, it’s often better for countries struggling economically to adopt Bitcoin. This might be the case here, especially since El Salvador is now gaining recognition for its Bitcoin investment and has already profited more than 100% at the current price compared to its original investment.

El Salvador and Argentina Regulators Sign Agreement to Help Develop Crypto Industry