Bitcoin has set another milestone in the race of cryptocurrency this year as it became legal tender in the central American country called 'EL Salvador' .
El Salvador president Nayib Bukele has made Bitcoin a legal Tender which was not such easy step to take as No any other country showed that much courage .
As we know El Salvador was going everyday poorer in economy growth because of lack of banking and financial establishment. The country stopped its own currency in 2001 and started accepting US Dollar to just boost its collapsed economy but could not do well then in 2021 June , cryptocurrency revolution bill passed in the parliament of El Salvador in the presence of the president .
El Salvador is the first country for taking such brave step because there are many country who thought to adopt crypto as legal tender but failed as we know Venezuela brought the concept to launch its own crypto which suppose to be oil backed .
There are some critics who criticised the decision of legal tender like WORLD BANK who not interested to support El Salvador new law in favour of crypto as it is not environment friendly.
John Hopkins University professor Steve Hanke criticised El Salvador decision as he thinks Bitcoin is not the right digital currency to accept as legal tender ,it may harm country economy more than ever as it might drain whole reserve fund of the country due to high volatility.
El Salvador president Nayib Bukele has strongly put his views on the support of bitcoin which can be stated below:
Country 50% population lives out side of the country for employment purpose and they pay 10 to 15 USD fees for just transact the remittance amount of minimum 200 USD by various centralised financial company and bank.This huge Fees structure will be reduced once applied bitcoin as legal tender as we know transaction fees are less on blockchain and also fast .
Most Country people has no bank account, no internet and mobile phone ,will be encouraged to use digital wallet to transact their funds.
- The president also benefit entrepreneur permanent residency if they go to El Salvador and start their business which can lead more jobs generation .
- The impact of president decision looks fruitful as many fin-tech companies already showed interest to set their manufacturing hub there.
How Bitcoin will be used in real market
El Salvador has announced a government wallet with partnering with Strive where all the retail merchant and other transactions will be implemented fast and secured without any delay. as per government, everyone must use bitcoin as legal tender but in some cases like no proper connectivity with technology, bitcoin payment gateway might be skipped.all the bitcoin transaction will be done with current price of bitcoin in USD dollar. in example if i bought 1 kg tomato worth 1 dollar and i want to pay in btc then merchant will charge 1 dollar worth of btc to complete the transaction.
In summery , Bitcoin implementation in whole country as legal tender is still in initial stage but it will surely help to make the economy more transparent and paperless.
A good news is Nigeria is the African country, is first where majority of people use digital currency for their daily life expense .
El Salvador for sure encourage other American countries to follow their step and sooner or later all the world.
Resources:
Youtube, Wikipedia ,Twitter, News
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