Who could ever think of bitcoin as a legal tender?
Absolutely no one because the digital currency is doing really well.
In recent times, bitcoin has moved a step from being a medium of exchange and now treated as a store of value.
The medium of exchange feature was revisited during the bitcoin conference.
The bitcoin conference is Miami which is believed to be the largest bitcoin conference welcomes all crypto enthusiasts and investors together.
During the event, the President of El Salvador, Nayib Bukele announced that the country is set to accept bitcoin as a legal tender.
Accepting bitcoin as a legal tender means bitcoin will be fully backed by the government.
The major difference in cryptocurrency and fiat is legal tender.
In his words, Nayib Bukele also announced that the country has partnered with digital wallet company, Strike so as to build the country’s modern financial infrastructure using bitcoin technology.
He went further saying, “Next week, I will send to Congress a bill that will make bitcoin a legal tender”.
El Salvador Congress is made up of a majority of New Ideal party members that were elected during their election.
Passing and approval of the bill will make El Salvador the first sovereign country to accept bitcoin as a legal tender.
El Salvador’s economy
Report shows that 70% of people in El Salvador did not have bank accounts or credit cards.
The economy can be regarded as a cash economy with limited online transactions through remittances.
Remittances on the other hand or money sent home from migrants account for more than 20% of the country’s GDP.
Service charge for those international transfers can cost as high as 10% or more as charges.
Not only that, it takes days and some even require physical pick up which slows down economic activities.
El Salvador and Strike.
Earlier this in March, Strike launched its mobile payment app and it quickly developed and became the country’s most downloaded app.
The payment processing company thrives in the country and it is now in partnership with the government of the country to be a facilitator of the acceptance of bitcoin as a legal tender.
News like this are of more benefit, not only to bitcoin, but to the cryptocurrency at large.
Looking back at how the citizens adopted the Strike mobile payment app, there might be a significant increase in the use of cryptocurrency once the proposal is approved.
The supply of bitcoin still remains the same but with this new development, the demand might increase significantly.
Also, this will be a charge to other countries and the mass adoption of cryptocurrency might be triggered soon.
The question now is, will you be a beneficiary of the mass adoption?
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