.jpg "What bitcoin has provided to El Salvador The adoption of bitcoin as a legal currency has led to controversy but also undeniable benefits for the country. El Salvador made history by becoming the first country to use bitcoin as legal currency when its president officially announced it in June 2021.")
What bitcoin has provided to El Salvador
The adoption of bitcoin as a legal currency has led to controversy
but also undeniable benefits for the country.
El Salvador made history by becoming the first country to use bitcoin as legal currency when its president officially announced it in June 2021.
The Salvadoran government has approved bitcoin as legal currency in a country where nearly 70% of people live outside the banking system and a large part of its offshore productive population since 2006. Bitcoin as legal currency addresses these two issues.
Before we discuss the financial options bitcoin provides to El Salvador
we need to remember the meaning of legal tender and how it is applied :
- The courts must acknowledge the currency's legitimacy as a means of payment acceptable for paying off any debt in money.
- Each jurisdiction determines what legal tender is
- But it's basically anything when it's offered ("currency") to pay the debt.
- There is no obligation on the creditor to accept the payment made in the currency, and payment in the legal tender meets the "
Long-term plan for building the country's infrastructure
- September 2021
- El Salvador has begun to require all companies to accept bitcoin
- Article 102 of the Constitution of the Republic follows:
The State is under an obligation to promote and protect private companies and to create the conditions necessary to increase national wealth.
Many in the bitcoin community believe that by 2025 many other nation-states will adopt bitcoin.
- El Salvador in 2021 wanted to make sure that its citizens
- and future investors would get an advantage because other countries get bitcoin.
- This enables them to build the country's infrastructure before that next adoption.
- Other countries have come to El Salvador to better understand the transformation
- and how it can be applied to their countries.
Last year
Foreigners have promoted international initiatives in El Salvador that have a good economic impact. These projects include medical institutions, tourism and other investments that have created jobs for Salvadorans.
Security measures have also been taken to encourage people to visit El Salvador and invest. El Salvador continues to seek investments to continue building local infrastructure.
Because of the adoption of bitcoin, citizens who left in the diaspora will be encouraged to return to El Salvador. When they return, they will bring with them the possibility of positively affecting the Salvadoran economy.
The largest investment bet in history
- Remittances went to investment
- It did not return to consumption.
- There are more than 100 projects representing $400 million of expatriates.
People outside the country are passionate about change in El Salvador but because bitcoin is not understood
people at home are often reluctant to trust the new economic system created by President Bukele a year ago.
Other Latin American countries have already begun to copy the Salvadoran model. Bukele met with officials from the central banks of Costa Rica, Ecuador, Haiti, Honduras, the Dominican Republic, and Paraguay.
According to the World Tourism Organization.
El Salvador now ranks 13th out of 15 listed countries and is among the top performing destinations for revenue in the first five months of 2022.
According to Bitcoin Magazine, the country is on track to earn an additional $99 million in tourism this year compared to 2019.
In fact
support for Neb Bukele has increased compared to the rest of Latin America's presidents. The latest poll by La Prensa Grafica gave President Nayib Bukele an approval rating of 87% after three years in office. 86.8% of Salvadorans who responded said they agreed with President Nayib Bukele's work after three years in office.
But, what are people actually thinking about El Salvador's adoption of bitcoin?
An unknown citizen of El Salvador told us that they had seen no change in the economy, and that few people used bitcoin in their own transactions. People are wary about implementing and using bitcoin.
- People are still not very confident because they don't know if bitcoin is safe.
- The Chivo wallet that was plagued by problems and had a combination of effects on startup according to the unknown citizen.
- There was insufficient education and very few people were able to teach themselves.
El Salvador still doesn't have enough connection to the Internet. different plans to bring satellites have not happened yet and everything is still in the pipeline .
El Salvador's Internet penetration rate was 50.5% of the total population at the beginning of 2022.
- Despite these concerns, the country remains
- They tend to develop around bitcoin and infrastructure to facilitate it.
- In the end, it is not yet clear whether their bet on bitcoin will pay off.
Comments
Post a Comment