El Salvador hopes to becomes the world’s first country to adopt bitcoin as legal tender

Discussion in 'Cryptocurrencies' started by johnarb, Jun 5, 2021.

  1. johnarb


    This could spread in Latin American countries...


    El Salvador hopes to becomes the world’s first country to adopt bitcoin as legal tender

    MacKenzie Sigalos@KENZIESIGALOS
    Nayib Bukele, El Salvador’s president, delivers a speech to Congress at the Legislative Assembly building in San Salvador, El Salvador, on Tuesday, June 1, 2021. Photographer: Camilo Freedman/Bloomberg via Getty Images
    Bloomberg | Bloomberg | Getty Images
    MIAMI -- El Salvador announced legislation Saturday that will make it the world’s first sovereign nation to adopt bitcoin as legal tender, alongside the U.S. dollar.

    In a video broadcast to Bitcoin 2021, a multiday conference in Miami being billed as the biggest bitcoin event in history, President Nayib Bukele announced El Salvador’s partnership with digital wallet company, Strike, to build the country’s modern financial infrastructure using bitcoin technology.

    Strike founder and CEO Jack Mallers said this will go down as the “shot heard ’round the world for bitcoin.”

    “What’s transformative here is that bitcoin is both the greatest reserve asset ever created and a superior monetary network. Holding bitcoin provides a way to protect developing economies from potential shocks of fiat currency inflation,” continued Mallers.

    Speaking from the mainstage, Mallers said the move will help unleash the power and potential of bitcoin for everyday use cases on an open network that benefits individuals, businesses, and public sector services.

    El Salvador is a largely cash economy, where roughly 70% of people do not have bank accounts or credit cards. Remittances, or the money sent home by migrants, account for more than 20% of El Salvador’s gross domestic product. Incumbent services can charge 10% or more in fees for those international transfers, which can sometimes take days to arrive and that sometimes require a physical pick-up.

    While details are still forthcoming about how the rollout will work, CNBC is told that El Salvador has assembled a team of bitcoin leaders to help build a new financial ecosystem with bitcoin as the base layer.

    “It was an inevitability, but here already: the first country on track to make bitcoin legal tender,” said Adam Back, CEO of Blockstream.

    Back said he plans to contribute technologies like Liquid and satellite infrastructure to make El Salvador a model for the world.

    “We’re pleased to help El Salvador on its journey towards adoption of the Bitcoin Standard,” he said.

    This isn’t El Salvador’s first move into bitcoin. In March, Strike launched its mobile payments app there, and it quickly became the number one downloaded app in the country.
    ScroogeMcDuck, Trader Curt and Baron like this.
  2. Saxio


    Interesting ..
    johnarb likes this.
  3. taojaxx


    MS13 loves BTC.
    VicBee and Nobert like this.

    Seemed like you forgot to finish your sentence.
    You're welcome....
    johnarb likes this.
  5. piezoe


    I think this is an extremely bad idea. But why not let El Salvador test the idea and see what happens. My condolences to the good folks of El Salvador. But they at least have the U.S. Dollar to fall back on; not the best situation either. Not because there is anything wrong with the dollar, but because they can't print it. Therefore when El Salvador experiences a recession and financial retrenchment in their private sector, the government can not "leverage up" by printing to compensate for the private sector leveraging down. Their only option will be to borrow at high rates in another countries currency. It is only a matter of time before this is bound to lead to default. Ooops, I forget to take into account the probability of a miracle.
    Last edited: Jun 5, 2021
    Centuria100 and taojaxx like this.
  6. Overnight


    EL Salvador should not be allowed to exist as a country until they eliminate all the people that make up MS-13. I agree with tao.

    I read that MS-13 has moved into my neighborhood on Long Island where i grew up, and have been just killing people. Absolutely horrible murders.

    Sorry El Salvador...Control your migrants, or get nuked. F you!
  7. johnarb


    This could have US implications on treatment of bitcoin

    Also, El Salvador may put bitcoin on their reserves

    This could just be the beginning. Imagine a bigger country following suit

    Bitcoin sold on the news, so it's possible lots of traders went leveraged long trying to front run the news...

    Trader Curt likes this.
  8. johnarb


    A Twitter thread with more details

    Trader Curt likes this.
  9. Overnight


    Except El Salvador is a shithole country which exports nothing but gangbangers who kill innocent Americans. Fuck them and the evil horse they rode in on. No sympathy. Nuke'em.
    clockwork71 likes this.
  10. johnarb


    Our opinions or emotions cannot affect the realities or legalities in the world

    El Salvador is a country

    You may have other countries you hate, like countries that harbor terrorists or drug dealers, and you saying Nuke 'em will not have impact on the realities that we live in
    #10     Jun 5, 2021
    piezoe likes this.