Around 1 September @readthisplease wrote this article concerning some confusion surrounding Bitcoin's status in El Salvador:
FUDsters are saying that Bitcoin will be required, but @readthisplease is saying that President Nayib Bukele is saying that's not the case. To me it looks as if the use of cryptocurrency is optional in El Salvador, but when it is used it must (by law) be Bitcoin. Left unsaid, but understandably, is that USD still rules the economy in El Salvador.
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It is true. Nobody will be forced to deal with crypto if they don't want to. It's as simple as that. President Nayib Bukele and their government have clarified this multiple times. It's all part of a larger FUD attempt going on against this law.
I am sure it will be there for a while and co-exist with Bitcoin and other cryptos. Not going anywhere too soon. It's just that now El Salvador is not fully dependent on USD or the USA's economy. This dependence is expected to diminish over the years to come.
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What if the flow of money into the United States from El Salvador increases as a result of the use of Bitcoin there? Isn't that what a country wants from its neighbors, more money? That BTC from El Salvador which ends up in USA could end up being converted back to USD sooner or later. This point gets little mention, but it could happen.
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Sure. More money and good relations.
Sorry, I didn't get your point.
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Price increases. Both the seller in El Salvador and the buyer in USA get to cash out the BTC for USD, but due to when the cashing out takes place the American may get more USD than the person cashing out in El Salvador. I think "arbitrage" is the word I should have used earlier.
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USD is what people are use to. Obviously it will take time to change. But if it's not mandatory then it probably means that people won't really start the move anytime soon.
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Yes, I think that's correct. The fact that Bitcoin is legal tender means that you cannot refuse it as payment should someone chooses to use it, but USD is still going to be accepted just like before.
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So El Salvador will have 2 legal tenders: USD for fiat money and BTC for crypto. Any Ethereum or Dogecoin fanatics going to El Salvador had better convert assests to Bitcoin first.
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Hahaha that's right
Unless the president goes crazy and decides to make those legal too!
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If the experiment in El Salvador works, why not? He could even have the legislature pass legislation which allow all forms of crypto to be used in the country, and he would sign that legislation into law.
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