It is six years since the country accepted bitcoin as a legal tender

It is six years since the country accepted bitcoin as a legal tender

Crypto-currencies frighten many people, especially since the Terra crash. More and more investors decide to sell and I believe the downturn will continue. However, this fear does not only affect traders, because States are also vigilant. While people are still hesitating and watching the markets, El Salvador is celebrating the first year since it adopted bitcoin (BTC) as a legal tender.

The main reason for taking bitcoin (BTC) in El Salvador as a legal tender

Many countries around the world have a high poverty line. In Africa, Asia, Europe and even America, some states have to take tough measures to meet the needs of their population. Like the Central African Republic and many others, El Salvador is also looking for alternatives.

Nayib Bukele, as president of El Salvador, must find solutions to reduce the poverty rate and meet the needs of his people. To do this, bitcoin adoption seemed to be the best solution. As is well known, developing countries often face relatively high fees in foreign currencies.

For a country with a low standard of living like El Salvador, adopting a currency of universal value is an effective way to raise the standard of living and develop the country at the same time. The new law requires businesses to adopt bitcoin. As a result, the country saves money and maximizes money transfers.

With the adoption of bitcoin, El Salvador will be able to develop in several aspects: tourism, economic development and technological innovation. To complete this project, the government has set up the Chivo Wallet application. To make the most of it, he taught people how to use it. The latter can then conduct BTC / USD transactions with complete peace of mind.

A project was successfully completed despite criticism from financial experts

All decisions are about taking risks. By deciding to take bitcoin as a legal tender, Nayib Bukele inspired many pessimistic views. Everyone is aware of the fear of cryptocurrencies, and especially bitcoin. Due to the instability of markets, more people are reluctant to start.

In the face of a critical situation, the Salvadoran government has decided to make life easier for its people. But for some financial experts, this decision leaves something to be desired, because there are too many gray areas. While crypto enables development, it can also tempt weaknesses.

First, experts believe that there is a risk in accepting bitcoin in El Salvador as a legal tender. In fact, it can quickly become dangerous, because it has no physical support. Not to mention that bitcoin is extremely volatile and could fall at any time.

In addition, this decision may be favorable to money laundering. We all know, from their media coverage, that cryptocurrencies are often used to launder money. And the legal use of bitcoin in El Salvador could increase the movement.

Despite many protests, El Salvador finally accepted bitcoin as a legal tender on September 7, 2021. Although many financial experts frustrated this project, the country continued on its path and it is already a year. However, only 40% of Chivo Wallet downloads are still in use. However, Nayib Bukele may be an inspiration to other presidents who want to take the step.

Source: Watcher Guru

Get a summary of news in the world of cryptocurrencies by subscribing to our new daily and weekly newsletter service so you don’t miss any of the essential Cointribune!

User Image

Eddy Senga

The world is changing and adaptation is the best weapon to survive in this turbulent universe. As a crypto community manager at the base, I am interested in everything directly or indirectly related to the blockchain and its derivatives. To share my experience and share an interesting field for me, there is nothing better than writing informative and reassuring articles at the same time.

Luna crash and bitcoin crash (BTC): deprivation, despair or healthy purge?

Luna crash and bitcoin crash (BTC): deprivation, despair or healthy purge?

Cardano (ADA) achieves every stop by announcing a new project

Cardano (ADA) achieves every stop by announcing a new project