Most of the time in an underdeveloped country the main economic source is remittance from the citizens. And the portion of remittance helps the country to update different development issues. But when the remittance portion goes under tax or fee, this becomes bad for Expatriates. And this is what EI salvador people facing for a long time and this is why finally Nayib the president of EI Salvador take action about this.
You will be surprised to hear that almost 20% of the total GDP of EI Salvador comes from remittance. And almost 1.8 millions expatriates sent remittances from different countries. And the total amount is around 4 billions dollars annually. Can you imagine this? But sadly, a big portion of this remittance goes to bank and tax officers. This is why many expatriate families face money problems as their main source of money comes from remittances. So finally president Nayib is going to have a solution to this.
According to this issue, last 26 June El Salvador congress held a meeting and passed the legal tender of bitcoin. Because they believe bitcoin is the only way how they can solve this remittances issue. As like i have said in my previous topics that Bitcoin made for peer to peer electronic money transfer and to transfer this money, none need third person to process the transaction as like we need third person in bank. So if EI Salvador made a legal tender there of bitcoin, expatriates can easily send remittance from another country without any tax or fee. Also they can send it within minutes rather than the bank which takes up to one day to send the remittance.
As the last 7th of September EI Salvador passed the legal tender of bitcoin successfully, they started to set up enough ATM machines there to buy or sell bitcoin instantly. Around 1500 ATMs of bitcoin are already set up in EI Salvador, especially for those who send remittances from other countries. This might be the best step from EI salvador for the expatriates.
Anyway, the bitcoin legal tender will not be helpful for the remittance issue only but this will be helpful for everyone living in EI salvador. Because a large part of profit now comes from Crypto trading and if there people are able to learn trading properly then they can easily gain profit like a Nigerian trader is getting now. Also they can buy bitcoin and store it for future saving which will surely give them more profit than saving Fiat money which is full with inflation. But bitcoin has no inflation because it has a limited supply of only around 21 millions. And the demand keeps increasing day by day as the whole keep accumulates it and sends on hardware wallets.
So how do you see the step of EI Salvador in the case of Bitcoin legal tender?