Is It A Good Move To Recognize Bitcoin As Legal Tender for Brazil and Argentina?
Bitcoin does not have any central authority you can point fingers at. No single entity can be held accountable or impose regulatory scrutiny. Decentralization is the strength of Bitcoin. You do not need to trust any third party.
In the past, we did not have any example of any government recognizing Bitcoin as a legal tender until El Salvador made its bold move to accept BTC as an official and legal tender. Then the Central African Republic (CAR) followed in El Salvador's footsteps and became the second country to accept Bitcoin as legal tender.
Recently, Coinbase CEO Brian Armstrong made a tweet to express his thoughts about considering Bitcoin as a legal tender for Brazil and Argentina. Brazil and Argentina like to have a common currency that can work parallel with the Brazilian real and Argentine peso.
According to Brian Armstrong, it could be the right long-term bet if both countries accept Bitcoin instead of creating a common currency. El Salvador's experience with Bitcoin shows that it can be used to fund different initiatives like building schools and a veterinary hospital from Bitcoin profit.
Some argue that Bitcoin's volatility makes it unsuitable as a currency. A currency should not be so volatile. It is clear how much the price of Bitcoin can fluctuate over time. The overall long trend of Bitcoin is positive. It has a store of value. Bitcoin can be used as a reserve asset like gold.
Some people make their argument, saying the speed of Bitcoin transactions is slow. Lightning Network is coming out to this issue. You can make transactions fast and buy goods and services with Bitcoin.
Brazil passed a law to legalize crypto as a payment method, but it is not legal tender. Counties should analyze their economic situation and how it impacts with more influence of cryptocurrency. It is up to them to make the ultimate decision whether accept Bitcoin as a legal tender or not. It is definitely a good thing to recognize crypto as a payment method.
There are countries where crypto is banned. You are in crypto, and you feel like you are doing something wrong, seeing the expression of the central authority. You know you are doing the right thing. They just do not realize what crypto can offer for the development and growth of a country.
Some countries failed miserably to ban crypto and then approve crypto. But they impose a high crypto tax on its citizen and businesses. There is a clear intention to discourage people from getting involved in crypto.
Some countries embrace crypto and give facilities to build crypto-related businesses. That's a great move, and they are moving forward quickly. The rest of the world that negatively sees crypto will change their mind sooner or later when they notice the massive growth of crypto-adopting countries.
So what do you think? Please feel free to leave your comments. Thank you for reading this post. That's it for now. I'll be back with another post.
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