El Salvador is the first-ever country in the world to make Bitcoin legal tender. Nayib Bukele is the country’s president, and he says that his new policy was historic. Other advocates of digital currency feel the same way. Bitcoin buyer is an excellent platform that streamlines the process and offers great services.
However, Bitcoin’s debut was marred by a few technological hiccups. The country opened its first digital wallet app to consumers and residents for the first time, which caused a bit of an issue.
Why El Salvador Chose Bitcoin
Bukele suggested previously that Bitcoin should be legalized to spur investment within the country. His goal was to help about 70 percent of Salvadorans because they have no access to traditional financial services.
He claims that the country must break past paradigms and wants El Salvador to advance toward the first world.
Overall, Bukele stated that Bitcoin usage was a more effective way to transfer billions of dollars in remittances. Salvadorans living outside of the country send money to their homeland each year, and it might be easier through Bitcoin than traditional transfer options.
Right now, the El Salvador government holds about 550 Bitcoin. This is the equivalent of $26 million. It also nationally recognizes the US dollar.
Rollout Successes and Hang-Ups
When the Bitcoin rollout occurred, there were plenty of social media stories about people using Bitcoin successfully to pay for various goods. One man tweeted that he walked into a San Salvador McDonald’s and paid for breakfast with Bitcoin, even though he said he thought they might say no. He was given a receipt with a QR code, which sent him to a Lightning invoice, and he enjoyed his sandwich.
However, there were a few minor hiccups during the introduction of the new currency. This is normal for any country, though.
After the initial launch, officials had to take Chivo down, which is the virtual Bitcoin wallet for El Salvador. They had to increase the image capture server capacity to keep up with things.
Opposition to Buekele and Bitcoin
Though this was a historic economic move and was talked about throughout the world, the country’s excitement seems to be lower.
Polls indicate that about 67.9 percent didn’t want Bitcoin to be legal tender. Respondents weren’t sure how to use cryptocurrency.
Critics of the experiment wore tee-shirts to oppose the Bitcoin law, as well.
However, it’s not just focused on the economy. Some people dislike the Bukele government because of a court decision believed to be unconstitutional. The rule states that presidents cannot run for a second term because it’s barred by the El Salvador constitution. However, judges dominated by Buekele’s party concluded that he could run again in 2024.
Is Bitcoin Set to Be Legal Tender Anywhere Else?
There are no current pushes in place for Bitcoin to become legal tender. Many Americans are hoping that it gets recognized soon because it has high potential. However, the US government isn’t sure how to regulate it yet to get its fair share in taxes.
While it isn’t illegal to trade Bitcoin, own it, or buy/sell it, you can’t walk into a favorite fast-food joint and pay with it.
Some companies are trying to do this privately through their businesses. However, it’s still not seen as a viable payment solution. If you want to dabble in Bitcoin, trading is the way to go.
Everyone has heard of Bitcoin now, even if they have lived under a rock. Many people are still unsure of it, but that didn’t stop one country from making it legal tender.
El Salvador bit the bullet to try out Bitcoin as a national currency. Though there were a few hiccups and concerns, it seems to be working out for everyone.