Bitcoin is legal tender…
Bitcoin has recently become legal tender in El Salvador, and it’s time to take stock. Protests against the measure have taken place in every major city in the country. In the capital, ATMs were set on fire and other protesters called the president a dictator.
The country has launched Chivo, a crypto wallet that gives every resident access to USD 30 worth of bitcoin. Unfortunately, there are still a lot of disruptions. This is not surprising, given that 70% of the population do not have a bank account and digitalisation is in its infancy. Many shops still refuse to accept the new currency, even though it is required by law. Some people fear that bitcoin will bring instability and inflation to an already poor country. Admittedly, there are indeed many initial difficulties.
Nevertheless, Bitcoin has been a huge success. The future clearly lies in crypto currencies and decentralisation.
In recent decades, masses of people have emigrated from the country, mainly to the US. The government hopes that these migrant workers will be able to transfer much more money to their relatives back home. More information on the success of this bold operation will be available in a few months.
El Salvador – The first country to legalise bitcoin. It’s beautiful.
Meanwhile in Ukraine…
It’s no exaggeration to say that the whole world is watching the events in El Salvador. And an Eastern European state has taken concrete action. The Ukrainian parliament has unanimously adopted a law legalising crypto currencies. Although the use of digital currencies has never been against the law, the authorities have taken tough action against bitcoin miners. In some cases, expensive hardware has been confiscated from them. The Ukrainian government plans to mine cryptocurrency using nuclear power. Initial reports suggest that the public has welcomed the news.
There is no shortage of encouraging news. Cuba recently passed a law recognising alternative currencies. Argentina, Paraguay and Panama are also considering moves in this direction. Germany allows certain funds to hold part of their portfolio in cryptocurrency. There is no stopping, this is still the beginning of the journey. Who’s next?