{"id":465128,"date":"2021-06-06T17:29:01","date_gmt":"2021-06-06T17:29:01","guid":{"rendered":"https:\/\/ktsl888.com\/?p=465128"},"modified":"2024-06-11T08:31:32","modified_gmt":"2024-06-11T08:31:32","slug":"bitcoin-legal-tender-el-salvador","status":"publish","type":"post","link":"https:\/\/ktsl888.com\/news\/bitcoin-legal-tender-el-salvador\/","title":{"rendered":"Why Bitcoin Declared Legal Tender Could Have Major Implications Beyond El Salvador"},"content":{"rendered":"

The adoption of the Bitcoin Standard by nation-states has begun<\/a>. El Salvador will become the first country to declared BTC a legal tender. The announcement was made recently; the crypto space and its industry are still processing its impact.<\/p>\n

Although a relatively small country, El Salvador could trigger a similar effect as when MicroStrategy included BTC into its treasury<\/a>. At that moment, a domino effect caused one of BTC\u2019s biggest adoption periods by public companies.<\/p>\n

As Nayib Bukele, El Salvador\u2019s Head of State said via his Twitter handle, Bitcoin has a $680 billion market cap. If 1% of this number it\u2019s invested in this country, according to Bukele\u2019s calculations, their GDP could grow by 25%.<\/p>\n

After a violent civil war, El Salvador adopted the dollar as their official currency. Many went into exile or migrated to other countries with better economies. This had two consequences for the country: it relies on the U.S. dollar stability, with concerns about rising inflation in this currency seems logical for the country to promote an alternative.<\/a><\/p>\n

As a second consequence, many people receive remittances. Around $6 billion are paid to third parties to process the remittances. Bukele claims that by adopting BTC, 1 million low-income families will benefit and will increase their incomes \u201cin the equivalent of billions of dollars every year\u201d. Bukele said<\/a>:<\/p>\n

On the other side, Bitcoin will have 10 million potential new users and the fastest growing way to transfer 6 billion dollars a year in remittances.<\/p><\/blockquote>\n

Further data provided by the Head of State indicates that around 70% of the country\u2019s population are unbanked. However, many have access to a smartphone. Bitcoin will be a tool to create financial inclusion and help economic growth. People will be able to save, invest, access credit, and their transactions will be secured by BTC\u2019s network.<\/p>\n

One Small Step For Bitcoin, One Giant Step\u2026<\/h2>\n

Many countries around the globe shared these conditions. Many wondered how much it will take for other Heads of State to notice the benefit of the Bitcoin<\/a> Standard. In the U.S. alone, local government officials, senators, congressmen and congresswomen, and other government officials have celebrated the announcement.<\/p>\n

Caitlin Long, a member appointed by the state of Wyoming to the Blockchain Select Committee and a 22-year Wall Street veteran, believes El Salvador\u2019s decision could open a back door for banks in the U.S. to handle Bitcoin.<\/p>\n

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1\/ THREAD ABOUT A HISTORIC DAY in #bitcoin<\/a>: #ElSalvador<\/a> president publicly announced support for legislation to make #BTC<\/a> legal tender. *IF* it does become law, it wld have many secondary effects. Steel yourselves bc a big fight on this probably coming thohttps:\/\/t.co\/BrrNxaLzpZ<\/a><\/p>\n

— Caitlin Long \ud83d\udd11\u26a1\ufe0f\ud83d\udfe0 (@CaitlinLong_) June 6, 2021<\/a><\/p><\/blockquote>\n