El Salvador plans to make Bitcoin crypto-currency legal tender.

MasterOfCoin

Experienced member
1,150 441
El Salvador's President Nayib Bukele says he will make the Bitcoin crypto-currency legal tender in the country.

If his plan is backed by the nation's congress, the Central American country would be first in the world to formally adopt the digital currency.
It would be recognized and used alongside the US dollar, El Salvador's official currency.

One cannot understate how earth-shatteringly significant this would be.

The Federal Reserve (which isn't federal and has no reserves) will not be at all happy at the prospect of a rival currency, over which it has zero control and is powerless to prevent transactions in, holding equal legal status as a means of payment under law with the US dollar.

It's a very brave and bold move, considering the fate generally visited upon any sovereign nation in recent times that has dared to challenge the supremacy of the dollar and adopt alternatives. It most certainly risks the country being reduced to rubble and smouldering ruins if the inevitable attempts at regime change, sponsored coups or scathing economic sanctions fail to restore the status quo.

However, some rather significant facts suggest that the usual tactics may be easier imagined than carried out.

Some 70% of Salvadoran's do not have a bank account or access to financial services. So the change will, overnight, empower the vast majority of the population with the opportunity to become actively economically engaged and transact business with ease. That's over 10 million people that are currently financially excluded. The impact will be significant, to say the least.

More than two million Salvadorans live outside the country, but they continue to keep close ties to their place of birth, and El Salvador's economy relies heavily on their remittances, or money sent home from abroad, with them sending back more than $4bn (£2.9bn) each year, which makes up around 20% of the country's gross domestic product (GDP).

Banking and associated money transfer services can charge very large fees for such transfers, which are inaccessable to the poorer and financially excluded and can also often take many days to arrive and sometimes even need to be picked up in person. Bitcoin will allow and enable them to do the same thing, only almost instantaneously, and direct to the recipient, for near zero fees. A massive improvement.

"This will improve lives and the future of millions," Mr Bukele said.


Free the world- use cryptocurrency.

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Here

Member
75 24
I was on Ron Paul forums when someone said 'Hey,have you heard about Bitcoin?It's a type of electronic money' or similar.On mountgox? it was $0.01 then jumped to 6cents then 15cents and I still didn't buy.I never did...
 

MasterOfCoin

Experienced member
1,150 441
Err, yes, well. Folks do seem to leave their brains behind in the chicken coup when it comes to crypto.

Its money. You use it to pay for things you buy and be paid for things you sell. Only, without a bank or credit card provider taking a cut out of every transaction. You don't need an abacus to work out that's cheaper than using the bank.

As to storing your cash in somebody else's wallet..... would you do this with your dollar bills?

That's just plain stupid.

Fools and their money are easily parted.

;)
 

MasterOfCoin

Experienced member
1,150 441
El Salvador has become the first country in the world to officially classify Bitcoin as legal currency.

Congress approved President Nayib Bukele's proposal to embrace the cryptocurrency, with 62 out of 84 possible votes on Tuesday night.

The president said the government had made history, and that the move would make it easier for Salvadorans living abroad to send money home.

Bitcoin will become legal tender, alongside the US dollar, in 90 days.

The new law means every business must accept Bitcoin as legal tender for goods or services.
Crucially, that makes a debt noncollectable and unenforceable if the debtor has offered payment in bitcoin. The creditor can no longer insist on payment in dollars as bitcoins are equivalent legal tender.

You still won't be able to settle in carrots, shirt buttons, or Grandma's mints though.

"It will bring financial inclusion, investment, tourism, innovation and economic development for our country," President Bukele said in a tweet shortly before the vote.
He has previously said the move would open up financial services to the 70% of Salvadorans who do not have bank accounts.

On Twitter, some financial and legal observers described the law change as a remarkable accomplishment and a game changer, while others raised concerns about the cryptocurrency's volatility.

The Congress vote happened on the same day that former US President Trump said
"I don't like it because it's another currency competing against the dollar,"
He told Fox Business he saw it as a 'scam'.
He added that he wanted the dollar to be "the currency of the world".

Bitcoin, a digital virtual asset with no direct connection to the economy, central banks, stock markets, commodities or fiat currencies can be used by just about anyone more or less anywhere as easily and conveniently as traditional cash.


Free The World - Use Cryptocurrency.
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Henow1969

Active member
220 22
El Salvador has become the first country in the world to officially classify Bitcoin as legal currency.

Congress approved President Nayib Bukele's proposal to embrace the cryptocurrency, with 62 out of 84 possible votes on Tuesday night.

The president said the government had made history, and that the move would make it easier for Salvadorans living abroad to send money home.

Bitcoin will become legal tender, alongside the US dollar, in 90 days.

The new law means every business must accept Bitcoin as legal tender for goods or services.
Crucially, that makes a debt noncollectable and unenforceable if the debtor has offered payment in bitcoin. The creditor can no longer insist on payment in dollars as bitcoins are equivalent legal tender.

You still won't be able to settle in carrots, shirt buttons, or Grandma's mints though.

"It will bring financial inclusion, investment, tourism, innovation and economic development for our country," President Bukele said in a tweet shortly before the vote.
He has previously said the move would open up financial services to the 70% of Salvadorans who do not have bank accounts.

On Twitter, some financial and legal observers described the law change as a remarkable accomplishment and a game changer, while others raised concerns about the cryptocurrency's volatility.

The Congress vote happened on the same day that former US President Trump said
"I don't like it because it's another currency competing against the dollar,"
He told Fox Business he saw it as a 'scam'.
He added that he wanted the dollar to be "the currency of the world".

Bitcoin, a digital virtual asset with no direct connection to the economy, central banks, stock markets, commodities or fiat currencies can be used by just about anyone more or less anywhere as easily and conveniently as traditional cash.


Free The World - Use Cryptocurrency.
🌍
What will be the impact of this decision from El-Salvador on cryptocurrency trading?
 

MasterOfCoin

Experienced member
1,150 441
What will be the impact of this decision from El-Salvador on cryptocurrency trading?
Well, for starters, there is now one country in the world that won't be banning it.

(And, if trading got banned somewhere else, it could simply be registered or even run from there instead)

So, it's going facilitate the potential for more trading, at least short term.

Adding ten million more users won't hurt that either- some of them are bound to trade.

Longer term though, the ever growing core user base will stabilize the price as their transactions dominate the network and thus reduce the impacts of trading, which in turn makes trading less attractive. Eventually that reaches an equilibrium, in theory, at least. But that's a very long way off, yet.

;)
 

postman

Legendary member
28,941 4,332
El Salvador's President Nayib Bukele says he will make the Bitcoin crypto-currency legal tender in the country.
...
Some 70% of Salvadoran's do not have a bank account or access to financial services. So the change will, overnight, empower the vast majority of the population with the opportunity to become actively economically engaged and transact business with ease. That's over 10 million people that are currently financially excluded. The impact will be significant, to say the least.

More than two million Salvadorans live outside the country, but they continue to keep close ties to their place of birth, and El Salvador's economy relies heavily on their remittances, or money sent home from abroad, with them sending back more than $4bn (£2.9bn) each year, which makes up around 20% of the country's gross domestic product (GDP).

Banking and associated money transfer services can charge very large fees for such transfers, which are inaccessable to the poorer and financially excluded and can also often take many days to arrive and sometimes even need to be picked up in person. Bitcoin will allow and enable them to do the same thing, only almost instantaneously, and direct to the recipient, for near zero fees. A massive improvement.

"This will improve lives and the future of millions," Mr Bukele said.


Free the world- use cryptocurrency.

🌍
... lose their entire life savings overnight.
 
  • Haha
Reactions: mpups

MasterOfCoin

Experienced member
1,150 441
Can the price of Bitcoin touch to 50,000$ fast?
Well, the twit's last tweet sent it back up to over $40,000, so yeah, it could.

That doesn't mean it will, the next tweet could sink it to $20,00, who knows ??

🐦
 
 
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