El Salvador, a poor country with about 6 million inhabitants in South America, characterized by corruption and violence, seizes the opportunity and becomes the first country to officially accept Bitcoin as legal tender alongside the US dollar.
In the future, the law provides that every merchant must accept Bitcoin as a means of payment who is technically capable of doing so. Accordingly, taxes can also be paid in the cryptocurrency.
What are the advantages and benefits of this step?
The advantage of being the first. This “first mover advantage” can have the effect that El Salvador will gain popularity and attractiveness. This is because it will go down in history and many millions of Bitcoin supporters could boost tourism and bring more innovation to the country.
The central bank could hold Bitcoin as a reserve currency, storing value. This could make the country wealthier in the long run and also hedge existing assets.
Millions of El Salvador citizens work in nearby foreign countries and regularly send money to their families back home. Until now, this has been done through providers such as Western Union, which charge very high fees for this service. This outrage is now also history. Because with apps like “Strike” it is now possible to transfer money or bitcoin in real time via the blockchain network; free of charge and without needing a bank account. Which is a very important point, because about 70% of people living in El Salvador do not have a bank account; however, practically everyone has a smartphone.
This step can serve as an inspiration for other countries that want to increase and promote fairness, democracy and justice in their state and especially the monetary system. It can be expected that step by step more countries (in South America, Asia and Africa) will follow. And the “Bitcoin Standard” as the new reserve currency of the world could become reality.
While the mainstream media, when publishing the El Salvador News, once again could not spare a side blow regarding the high energy consumption due to mining, Bitcoin, supported by over 75% renewable electricity sources, produces a block every 10 minutes like a Swiss clockwork and improves the lives of millions of people.