Crypto The Fate of El Salvador on their Bitcoin adoption

Josemendez

Verified member
It is no longer news in the cryptocurrency world that the President of El Salvador has announced that come September 7 , the country will fully have Bitcoin as a legal tender in the country.

This has drawn many attraction to the country , as miners are eyeing a move to this country , However there are also negative attractions as well. The international monetary fund (IMF) Are not in agreement with this and so is some of the country's regulators.

This could cause an issue for the country , if the IMF decides to excluded them from their body . There is also concerns over the fate of poor peasant farmers who may not have the knowledge and the resources to carry out bitcoin payment .

What do you think about this whole issues ?
 

Sherman198

VIP Contributor
If IMF exclude them from their body, that's a huge blow to them. However, if they did terminate their membership without mercy, then El-Salvador would have no other choice than to go ahead to full adoption, because they will be on a free ride and have nothing to lose. But the bad side is, they may lose so many privileges, including funding assistance from them for this new adoption, which means they may have to source for another opportunities else where.
 

Josemendez

Verified member
If IMF exclude them from their body, that's a huge blow to them. However, if they did terminate their membership without mercy, then El-Salvador would have no other choice than to go ahead to full adoption, because they will be on a free ride and have nothing to lose. But the bad side is, they may lose so many privileges, including funding assistance from them for this new adoption, which means they may have to source for another opportunities else where.
Outside the seclusion from financial assistance , they may not be able to participate in the international market and their goods and services may not be recognized in the international market ,if they are to be excluded by the international monetary fund. The only way they can be successful is if other countries follows their strategy.
 

Mika

VIP Contributor
According to recent news, International Monetary Funds has warned El Salvador for using bitcoin as a legal tender. I do not think using bitcoin as a legal tender is viable for long-term use due to the volatility of the crypto currency market, the transaction cost, and transaction speed. Bitcoin performs only 5 transactions per second.
 

Alexandoy

VIP Contributor
I have worked in a bank for more than 10 years. Legal tender means it is backed by the government. A currency means it is a pecuniary measure for convenience in transactions. Bitcoin is backed by El Salvador's country. But how can it be a pecuniary measure when the value of Bitcoin is changing every 5 minutes?
 

Josemendez

Verified member
I have worked in a bank for more than 10 years. Legal tender means it is backed by the government. A currency means it is a pecuniary measure for convenience in transactions. Bitcoin is backed by El Salvador's country. But how can it be a pecuniary measure when the value of Bitcoin is changing every 5 minutes?
This is the main issue with the whole adoption of cryptocurrency as a legal tender. An asset as volatile as bitcoin does not fit in as a legal tender. This explains why most regulators in the country are not comfortable with it . The international monetary fund knows that it will also affect the international market if El Salvador is allow into the international market with bitcoin a currency.
We just have to wait and see how things unfolds.
 
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