DEVELOPMENT OF THE USE OF BITCOIN IN EL SALVADOR

One of the news that caused the most significant impact during 2021 and raised the value of BITCOIN as the leading cryptocurrency was the adoption of this digital currency in absolute and everyday use in El Salvador. Visit at: cryptoglobal.io

Considered the new currency of legal tender in the Central American country, it has caused a stir in the country and its citizens and among users of cryptocurrencies worldwide.

This situation allowed the extraction of a significant amount of Bitcoin, causing its value to reach historical maximums that were never expected. In addition, it managed to push doubts regarding the use of CRYPTOCURRENCIES in other governments.

The Bitcoin law was approved in El Salvador in June, even though it did not have the approval of many members of parliament, to enter into force in September.

Doubts and uncertainty were the main feelings of the citizens when they learned what changes at the financial level were coming to the country, where only 15% of the population knows about cryptocurrencies and if they have done one or another cryptographic operation.

A government with new ideas

The Salvadoran government, led by its president NayibBukele, has made it very clear that the main objective of adopting Bitcoin as a legal currency for financial and commercial transactions is to benefit the population by fighting inflation.

The Goal that for many citizens has not been achieved since cryptocurrencies have been used by the wealthy sectors and the government to make more significant investments and benefit from them.

Although there are many opinions, something curious is that the percentage of people who supported in one way or another repeal of the Bitcoin law has decreased significantly; at the beginning, there was a percentage of 67%, which dropped to almost 20%.

READ:  8 Tech-Related Tasks You Should Outsource While Running A Business

It is contradictory, but that only Salvadoran citizens can conceptualize since they are the reference country worldwide in adopting the leading digital currency, Bitcoin.

There is excellent distrust around this financial and economic measure among many citizens since one of the main characteristics that harm cryptocurrencies is the volatility and risks around them.

To use Bitcoin, Salvadoran citizens must create their virtual wallets, which is easy for many and complex for others because not everyone has the same disposition and technological knowledge.

From the perspective of entrepreneurs, the adoption of Bitcoin as a payment method in establishments has been slowed down since, for many, it is something new and whose platforms can sometimes confuse users.

Have benefits been seen in El Salvador with Bitcoin?

The opinions concerning this aspect are very diverse since the population has adopted the digital currency quickly, but, on the contrary, the use of these currencies as a payment method has not had the same luck; however, one of the sectors that have benefited the most is tourism.

For massive adoption to occur, information campaigns must be aimed at the population where, through easy-to-transmit and straightforward language, the Salvadoran society can adopt digital currencies without pressure.

Although El Salvador is in the eye of the hurricane concerning foreign financing by the International Monetary Fund, this international institution does not agree with the use of cryptocurrencies as financial instruments.

Family remittances are another aspect that is interesting for the state since another option is offered to Salvadoran families without the cost of transaction fees to receive money from their relatives who are abroad.

READ:  Uphold – Gateway to Easy Buying and Selling of Cryptocurrencies

There have been many initiatives that the government has arranged to use and adopt digital currencies. For example, it has installed around 200 ATMs throughout the geography of El Salvador as well as in the United States, which is the country where there are more Salvadoran immigrants.

Conclusion

The perspectives and expectations around Bitcoin are many, which implies that many months will have to pass to show significant results where Salvadoran society sees the positive effects of this state policy.

Every beginning is always complex and challenging; let us remember that cryptocurrencies do not have many defenders, which makes the possibility of seeing results in the short term more difficult.

Bitcoin has a limited amount of coins that can be mined will make these countries increase their value. Therefore, theadoption of cryptocurrencies will be a success.

Leave a Reply

Pin It on Pinterest

Shares

Liked it? Share Now!

Let your friends know about this awesome post.

Shares