currency: Bitcoin as Legal Tender in El Salvador - impact on the crypto world and future implications

Business Analyst /Blockchain Enthusiast

What impact could BTC as a legal tender have on the crypto market in the coming months?

In April 2017, when Japan enacted a law to provide legitimacy to digital currencies, bitcoin from the sub 2k level went on to reach 20K by Jan of 2018. With a GDP of 25 billion USD, El Salvador is nowhere near Japan with a GDP of 5 trillion USD, however with a law of making Bitcoin a legal tender, it has certainly caught the world's attention. But it cannot be argued that other countries to follow soon. To begin with, since 2001 El Salvador never had an independent monetary policy or a currency of its own and is using USD as its legal tender. So merely adding another currency to its list of legal tenders was much easier. This may also pave way for the countries already using pegged currencies to move towards Bitcoin or stable coins such as USDC or USDT. But for the bigger economies shifting to Bitcoin means losing their control over monetary policy aka printing currencies. So they will be more hesitant and resistant to adopt decentralized cryptocurrencies. That's the reason why countries like Venezuela and Iran even after US sanctions have not started using Bitcoin in a big way though they had tried to create their own cryptocurrencies. When more countries especially in Latin America showing eagerness, the focus will also shift towards the security of the bitcoin network with the recent rumor of the FBI hacking the network to retrieve the ransom paid by the Colonial Pipeline may act as a damper. So El Salvador can become a case study on how to make citizens adopt cryptocurrencies and impart cybersecurity knowledge if it succeeds in its mission. On the Bitcoin price front , the news is definitely bullish. Now the Bitcoin will have more acceptance and more banks will be ready to deal with it. We can expect to be traded in currency markets openly. Also, the El Salvadoran move could make it very difficult for other countries to ban Bitcoin as no country has ever banned legal tender of another currency. Definitely, Bitcoin along with stable coins will be in demand near future. Hope for the moon. ( Salvadorans can enjoy the moon without worrying about the capital gains tax)

Blockchain academic & analyst.

What impact could BTC as a legal tender have on the crypto market in the coming months?

Satoshi Nakamoto, the pseudonymous creator of Bitcoin envisioned it as a globally accessible financial service. As is the case with most of the developing nations, 70-80% of the population do not have access to simple financial services let alone a bank account. Things most of the developed or Western World take for granted. For the developed nations, Bitcoin is mostly seen as a speculative asset and a means to diversify their investments, but for citizens of less developed nations, it is a means of exchange & a store of value. Citizens of nations hit hard by hyperinflation and run by rogue central bank governors and corrupt monetary policies, adopt Bitcoin because it is a clear way to store their wealth and escape the grasp of authoritarian rule. According to EL Salvador's Bitcoin legal tender official decree, there were several considerations that led to such a decision, three points caught my eye; Article III: Approx. 70% of El Salvador's population do not have access to traditional financial services Article IV: The state recognizes its obligation to facilitate financial inclusion for all citizens and fulfill their basic rights Article V: Choosing a digital currency which value is determined by free-market criteria. -------- The primary aim is to provide financial inclusion for all. Adopt a currency that is not controlled by anyone, but accessible to everyone. El Salvador & countless other nations use the USD as legal tender, but have all suffered from the US foreign policies & Bitcoin has finally provided a way out. I can think of many other nations who share the same issues and would benefit from such a move but I would not rush to assume that others will immediately follow as authoritarian rule and politics come into play and when it comes to money & power, the stakes are higher than ever. We are witnessing global shifts in power & central banks of China, the EU & USA are all in a race to launch their very own digital currencies for global financial control. Bitcoin is a decentralized, permission-less, borderless global financial system that offers people an accessible means of exchange & trusted store of value. China, US & EU are aware of its power & it is only a matter of time until they succumb to the fact that it is here to stay and there is nothing they can do about it to prevent other nations to adopt it as legal tender. The crypto market is at its very early days, with a market cap of a mere $1.5 Trillion. Every day more use case & applications are built on the same technology powering Bitcoin, Blockchain. Such news coming out of El Salvador only fuels Bitcoin's power and resilience against false narratives that claim Bitcoin & cryptocurrencies are a scam and will only drive more adoption.

Cyber Security, Blockchain and 3D Printing

What impact could BTC as a legal tender have on the crypto market in the coming months?

This move could mark the beginning of an open battle between global currencies. The US Dollar dominance is being attacked on 2 fronts, first is the chines CBDC and second crypto currencies, especially Bitcoin. In my opinion this fight is already going behind closed doors, now it is an open and viewable. The outcome depends on whether and when more countries rapidly join El Salvador. The IMF will likely try to intervene for the US and the more countries participate the harder the intervention. If these smaller countries plagued by currency problems accept BTC as store of value, the ripple effect could be huge. Basically BTC value is based on trust and mining so accepting BTC as payment is like saying we trust it at least as much as the US Dollar. Longer down the road this could result in many more and larger countries switching to El Salvador’s approach.

Doctor

What impact could BTC as a legal tender have on the crypto market in the coming months?

Bitcoin can help boost the economy in different countries. Blockchain technology is a technological innovation that is constantly evolving to try to overcome the problem of centralization. Any juicy News in this month after bad Campaign Elon Musk and China FUD. First, Twitter CEO Jack Dorsey will work with financial company Square Inc to make Bitcoin mining environmentally friendly, because many have criticized Bitcoin mining as not being environmentally friendly. Second, the government of El Salvador, as stated by the President of El Salvador Nayib Bukele at the conference, will make Bitcoin a legal currency. This is the first time a country will use Bitcoin as a legal tender. Interestingly, the currency of El Salvador so far is the US dollar. Developing country problems such as low digital financial inclusion, foreign investment problems and high inflation problems will be well resolved by Bitcoin adopting blockchain technology. No less unique is the plan that the BitMEX platform will partner with a space robot company to actually put Bitcoin on the moon, according to the Bitcoin jargon "to the moon" which means to fly high to the moon. With some good news above, all of these things will continue to grow and increase the demand for Bitcoin. The falling Bitcoin price is a good opportunity to take advantage of the opportunity to buy Bitcoin at a cheaper price than a few months ago. The existing Bitcoin innovation and the willingness of the Government of El Salvador to legalize bitcoin, will make Bitcoin have a higher demand so that Bitcoin has the potential to rise back to a higher level in the future.

Business Consultant.

What impact could BTC as a legal tender have on the crypto market in the coming months?

Longterm it will be remembered as a game changer for Bitcoin adoption. First country not only adopt bitcoin as legal tender but also as unit of account. What is more, until now, the US dollar was the official currency in El Salvador. That means that you may find products in shops & services priced not only in USD but in Bitcoin as well. This will draw attention of other countries to BTC and start wider adoption around the world.

Partner

What impact could BTC as a legal tender have on the crypto market in the coming months?

Making Bitcoin a legal tender in El Salvador will surely boost the legitimacy and international acceptance of the currency for all forms of transactions.

Junior stake

What impact could BTC as a legal tender have on the crypto market in the coming months?

I like it. The plan announced by President Nayib Bukele would make the small Central American nation the first in the world to adopt the digital currency, Bitcoin, as legal tender alongside the dollar. It would be a unique and bold step, the first by a sovereign country, and that may well be part of the attraction for Mr Bukele, a young, media-savvy and very popular leader who worries Washington over his increasingly autocratic tendencies. There are still many questions over how the digital currency would become the country's legal tender - a major overhaul of El Salvador's financial infrastructure would be needed with Bitcoin at its heart. But, in essence, it appears that is what Mr Bukele is proposing. Much of El Salvador's developing economy is based on remittances from abroad and the move to a digital currency may allow family members to avoid the costly fees involved in sending money home each month. Either way, it is a move which is likely to bolster Bitcoin's image as the "currency of the future" and President Bukele's standing among his supporters as an innovator.

Compliance Engineer

What impact could BTC as a legal tender have on the crypto market in the coming months?

The adoption of bitcoin in El Salvador more importantly recognition as legal tender is that one small step the world needs to expedite global adoption and acceptance as legal tender. Having studied the market and been a part of crypto for the better part of seven years and having lived off of crypto for five years without the need for a dollar I truly understand the convenience of what is now taking place in El Salvador. Honestly speaking however what its impact might have on the market will be nothing more than a blip. May be a five or 10% rise in the price of bitcoin and the alts to follow. But that's nothing more than normal fluctuation. El Salvador is a small country when compared to the global population. Any true impacts you find on the market with relation to bitcoin is most certainly the result of the whales pumping or dumping whatever suits their needs. I feel that El Salvador is just the first in many poor nations or nations with corruption or poor economies that will adapt and recognize bitcoin as legal tender. Any nation or government local or national to deny bitcoin as legal tender at this stage is only killing themselves. Whether you ban bitcoin or love bitcoin, It will remain as it is an outstanding store of value a means to transfer wealth from one to another in the God-given right to do so on your own accord and on your own terms and conditions. Congratulations to El Salvador for being a step ahead of the rest. And if you don't think digital currency's are going to be a mainStay in our lives moving forward then you're only kidding yourself.

Developer

What impact could BTC as a legal tender have on the crypto market in the coming months?

The adoption of bitcoin as legal tender in El Salvador will pave way for crypto currency usage in other countries if it doesn't improve fraudulent activities using bitcoin in the country, then other countries would have a positive view of it and adopt it as a legal tender in their countries thereby increasing the price of crypto currency in coming months. With this new development, more companies and firms will as well follow suit in the acceptance of crypto currency as means of payment which will also create a bullish market in the the crypto market in coming months.

Farmer

What impact could BTC as a legal tender have on the crypto market in the coming months?

Countries without fixed foreign exchange rates can partially control how much of their currency circulates by adjusting the discount rate, changing reserve requirements, or engaging in open-market operations. With these options, a central bank can potentially impact a currency’s exchange rate. El Salvador has become the first country to adopt bitcoin as legal tender. Impact for crypto world : This Will increase price BTC and Will High again

This is not a financial advice. Please do your own research and consider the risks of trading cryptocurrencies.