El Salvador, the smallest Central American country, made a big move recently. It became the first nation to accept BTC as legal tender, marking a vital point in the crypto market.
Moreover, this is a milestone for Salvadorans, as unbanked individuals account for 70% of the citizens. With cryptocurrencies such as Bitcoin, any individual with a mobile phone can access banking services. As mobile penetration is high in low-income nations, El Salvador has better plans for its citizens.
According to the new regulations announced by President Nayib Bukele on Saturday, the country will recognize the United States dollar as its currency. But businesses that have the technology to support crypto will have to accept BTC transactions. The president proposed as the Miami BTC conference was about to end.
The ‘BTC fixes everything’ buzz ruled the BTC conference. As much as no one mentioned El Salvador during the seminar, the country seems ready for crypto adoption.
Besides serving as a store of wealth – a version of digital gold, as other market players call it, BTC exists out of the traditional banking network. There is no way the central banks of El Salvador can print additional BTC, nor can the administration stop crypto transactions. With that, you can now tell why some demanding governments moved to suspend crypto doings.
Moreover, you will note that countries managed poorly opt to BTC. For example, Venezuela has the highest BTC acceptance rates due to the Hyperinflation that damaged its currency.
During the BTC 2021, someone stated that cash is trash, and no one should risk storing household wealth in the bank. That saw attendees ignoring 50 bolivar paper money scattering on the floors.
Market players believe that other countries will follow El Salvador, adopting BTC as a legal tender. American nations, including Brazil, Paraguay, and Panama, have already shown their support to legalize cryptocurrencies.
At the moment, El Salvador is strategizing on mining its Bitcoin.
Do you think that more countries will accept cryptocurrencies as legal tender? You can comment on your opinions below.