What is really behind El Salvador’s “Bitcoin Law”? Experts answer

& ldquo; El Salvador is primarily a service economy and its main export is manpower to the United States. Hence, international remittances represent a large inflow of money into the country. When you combine this with the fact that around 70% of countries have no banks and a significant amount of money is going to middlemen and money service providers at unreasonable prices, one can see why Bitcoin is an attractive one Option for the country would be.

Since El Salvador used the foreign currency US dollar as legal tender, they did not have to fear a loss of control or storage of the currency. Instead, it now has a dual model where both the US dollar and BTC are legal tender available to its citizens. & Nbsp;

In order to prevent subversive interference from the West, I believe that the new law will have a very positive effect on the local economy of El Salvador in a relatively short period of time, especially since part of the law protects against the volatility of Bitcoin by providing all providers with guaranteed Access to the spot market to convert your BTC to dollars with a single click. On a global scale, El Salvador has led several emerging economies to explore integrating bitcoin as a tool to improve their financial systems.

Some disagree with my opinion on the short-term benefits of the El Salvador Bitcoin initiative as a third of the population does not have internet access and therefore they will not benefit from Bitcoin as a solution to financial inclusion. If you first look at these statistics and, in the worst case, assume that all people without internet access have no bank account, then the Bitcoin law of El Salvador is directly responsible for the financial inclusion, at least 37% of its population, or at least 2, 3 million people who did not previously have a bank account.

In addition, it is wrong to believe that every citizen needs a full internet connection to use the Bitcoin network, which is based on the system set up by El Salvador. You really do not & rsquo; t. What you need is a comprehensive cellular network. Almost every Salvador, even in the most remote villages, has a smartphone that is more likely to run El Salvador’s official wallet app & rsquo; and nationwide 2G network connection is really all that the wallet needs to join the Bitcoin Lightning network. In the near future, it will not be a violation of reality for the government to turn on the wallet feature as a core service for most people, in addition to voice and text communications as the main mobile services if so desired. & Nbsp;

In the long run, I think legal tender, which is not under the control of any particular government, will be a big step forward in making the world a better place and moving closer to the ideal of democracy. My personal opinion is that Bitcoin currently has a number of inherent economic, environmental, and technical flaws that make it a poor choice for the ultimate currency in the world. At the same time, as a purely social construct, it can evolve into a suitable system that the majority considers right and that will survive if it exists. & Rdquo;