Cryptocurrencies

Bitcoin becomes a currency in its own right in El Salvador

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The Bitcoin 2021 conference ended on a high note. Nayib bukele, the President of El Salvador, has decided to make Bitcoin a currency in its own right (legal tender).


Strike in El Salvador

I will introduce this law to parliament as early as next week “, He declared during a speech prerecorded and broadcast during the presentation of Jack Mallers, the creator of the application Lightning Network Strike. The application Strike, launched in El Salvador in March, has since become the country’s most downloaded app.


Jack has been working with Blockstream and the president of America’s smallest country. A country where the national currency happens to be the US dollar… El Salvador is the sixth country receiving the most money from expatriates living in the United States. 24% of the country’s GDP depends on it …

In a recent interview, the founder of NYDIG, Ross stevens, explained how difficult it is to send money to family in El Salvador and why Strike is a revolution:

A housekeeper in New York wants to send her sister $ 100 in El Salvador. Before Strike and before Lightning, the transaction went through Western Union and the $ 100 turned into $ 60 (due to the fixed fee). Not to mention the gangs outside of Western Union and the fact that it sometimes takes several hours on the bus to get to a Western Union. Today, with Strike and Lightning, the sister in New York can open the Strike app, buy 100 dollars in bitcoins, these bitcoins are sent to El Salvador through the Lightning network, her sister receives them in El Salvador, instantly and for free. So $ 100 doesn’t turn into $ 60, but $ 99.80. No more going to Western Union, escaping the gangs and wasting 10 hours on a bus and sacrificing a day of your life every week to survive.

Bitcoin Standard in El Salvador

Front page of El Salvador newspaper

El Salvador is therefore the first country to combine a fiat currency system with Bitcoin. After all, gold and silver are also legal means of payment in many states. Why not put digital gold in the same boat?

Jack Mallers is of this opinion: “it’s a starting shot that is reasoning around the world for bitcoin. Bitcoin is both the best store of value ever created while being a superior monetary network. Holding bitcoin allows developing economies to protect themselves from potential inflationary shocks.

Jack Mallers got things done without an ICO, without premature shitcoin. He did this by promoting Bitcoin and creating a useful service for mankind and we can take our hat off to him for that.

This is another important step for bitcoin. We are happy to help El Salvador adopt the Bitcoin Standard“Said Adam Back, CEO of Blockstream, which will provide its liquid technology as well as its satellite infrastructure to make El Salvador a model for the rest of the world.

El Salvador’s decision is also a small earthquake because it is now possible to exchange your bitcoins for US dollars without paying the 30% tax on capital gains … El Salvador allows you to bypass this ridiculous law put in place in the United States. United States as well as in Europe with a view precisely to deprive it of the legitimate status of currency.

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Journalist / Bitcoin, geopolitics, economy, energy, climate

DISCLAIM

The comments and opinions expressed in this article are those of the author alone, and should not be considered as investment advice. Do your own research before making any investment decisions.

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