Why El Salvador accepting BTC as legal tender will be massive
As always, annual Bitcoin conferences are always info dense, full of surprises.
And it is precisely what happened when El Salvador president Nayib Bukele, during the Bitcoin 2021 Conference in Miami, said he plans to introduce legislation that would approve BTC as legal tender.
At present, they are partnering with Strike, a digital wallet company, to build a modern financial infrastructure that will be underpinned by blockchain technology.
If that comes through, El Salvador would be the first sovereign nation to integrate BTC as part of their monetary system—a significant endorsement for BTC.
Critics say BTC facilitates money laundering and all kinds of illegalities. The lack of clear regulations and high volatility makes it impractical to use.
However, this has been disproved. Bitcoin, without a doubt, works as designed. It serves as an excellent remittance tool, suitable for emerging economies that have to pay high fees. At the same time, Bitcoin is a better store of value. The total amount of BTC in circulation is known, becoming an inflation edge.
If El Salvador approves Bitcoin as legal tender, other countries will realize the advantage of using trustless networks to complement existing payment systems for a symbiotic relationship.