Inside El Salvador’s Bitcoin experiment | Crypto Craft

  • Inside El Salvador’s Bitcoin experiment

    From cointelegraph.com

    El Salvador is the world’s first country to adopt Bitcoin as a legal tender. While president Nayib Bukele believes the Bitcoin Law will bring financial prosperity to the country, skeptics say it poses serious risks to the country’s economy. Can El Salvador’s monetary experiment succeed?
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TwoSense
Jul 28, 2021 10:30am
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Good video. My key takeaways:

- El Savador is forcing merchants to accept bitcoin. Many pro-crypto people think this is the wrong move and Article 7 should be repealed. The counter-argument is "merchants will need to accept bitcoin, they are not forced to hold it." So they can convert it to cash once accepted. Seems like a lot to expect from those that might not have the means. 70% are unbanked/rely on cash.

- The president did this all on his own. No discussion or analysis on a national level. Made the law in two days and passed in three hours. A lot of people don't like that.

- 23%, or 1/5th of their GDP, comes from remittances. Now, that money coming in from outside the country won't be hit with fees. That has to be a big part of this.
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