El Salvador, first country in the world to classify Bitcoin as legal currency
With 62 out of 84 votes, Salvadoran Congress approved president Nayib Bukele's proposal to accept Bitcoin as legal tender.
Reactions to this historic move vary a lot depending on which side of the financial system one is positioned. IMF expresses concern whilst BTC and cryptocurrencies enthusiasts add this new recognition and acceptance of the asset to the already many signs of mass adoption by hedge funds, cities (Miami), or investers like Michael Saylor, Paul Tudor Jones, Elon Musk (even if the latter seems to be the one playing with every hodler's nerves).
"Bitcoiners around the world, the time has come. We are ready. We did our part. Now the ball is on your side." These are the words of William Soriano, one of the ruling party members, after the approval of BTC as an official currency, just like the usd.
Most mainstream media treat president Nayib Bukele as a populist, and continue to describe Bitcoin as the one asset used for money laundering and corruption. These tend to forget that money laundering and corruption go way back before the existence of BTC and that several major banks have been sentenced to very important fines for these very same crimes.
What seems to be the real concern is loss of control from global institutions over currency and over our own financial independence. This is why superpowers are in a race for Central Bank Digital Currencies (CBDC), with China leading the way. Bitcoin and cryptocurrencies in general are in the process of mass adoption with the likes of Paypal, JP Morgan, Goldman Sachs, as well as the rise of DeFi and NFT's, and this is no good news for the powers that be.
It is a well known fact that the global financial system wants to get rid of cash in favor of CBDC's, one of the reasons being that it would prevent bank runs in case of a financial crisis (see Greece, Cyprus, Lebanon…), and another being that "war on cash" is a way to prevent terrorism and corruption (quite ironic when one knows how corrupt these institutions can be).
"They" want your freedom and money, but why ? They can print as much currency as they want; money (or better said currency) is just random numbers to them. Why would we even have to work or pay taxes, when trillions of dollars can be created out of nowhere ?
I know I went astray from the initial news headline, but this is what it implies. This adoption of BTC by a sovereign country could mean so much more than what meets the eye. One sure thing is that it officially puts BTC (and cryptocurrencies in general) in the global financial scene, for good. Now let's see what the reactions will be and how things play out, but these are very intersting times for crypto enthusiasts.
What you think about this new Crypto Era ? It is began ? Or the extreme market volatility proper of the cryptos will be a problem for El Salvador ?
Let us know by leaving a comment and rating this article!
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