It is undeniable that cryptocurrencies are increasingly the order of the day: people invest more in cryptocurrencies, large companies convert part of their funds into cryptocurrencies (such as MicroStrategy), or famous players want part of their salary to be paid in cryptocurrencies.
But in recent days, the República de El Salvador has become, thanks to its president, Nayib Bukele, a country that already considers Bitcoin as legal tender.
But what can this mean?
According to the new Bitcoin law, all businesses must be able to offer a payment system in Bitcoins, so a large investment in technology must be made.
On the other hand, as it is also indicated that banks have to accept Bitcoin as a payment system, it is very possible that the interest rates with which banks lend money will rise, since Bitcoin is a very volatile currency and banks will want protect yourself from that volatility.
In addition, the possibility of paying officials their salary in Bitcoin has recently begun to be considered. It seems like a good idea, if we look at it from the perspective of the growth of Bitcoin, but we have also seen how it can be suddenly devalued by a comment or a post (think about what salaries were paid when bitcoin was above $64,000 and now it is above $40,000 ). They are salaries and are used to pay bills, not to make HODL.
But there can also be advantages.
For example, a part of the income of many Salvadorans depends on the money sent by compatriots who have emigrated to other countries. Until now, this money is sent through intermediary companies, with the payment of the consequent fees. Now, with the use of Bitcoin, these intermediaries are no longer necessary, not even the banks that charge commissions to manage these shipments.
It can also attract more tourism from people who want to pay in Bitcoins and who do not see a depreciation in their purchasing power with the exchange of currency between countries.
Conclusion
This inclusion of Bitcoin as legal tender in the Republic of El Salvador is a risky decision, which can both be a success (both national and foreign investment in the country), increase the purchasing power of the people ... give problems (we must be aware of the volatility of cryptocurrencies with sudden price changes, of possible scams if people are not taught how to use them correctly ...)
What do you think?