Why Has El Salvadore Made Bitcoin An Official Currency?
Bitcoin has been acknowledged as a legal payment method in El Salvador. In December, the Central American country followed Venezuela, recognizing Bitcoin as money. And since the Venezuelan government is now using bitcoins to buy heavily subsidized gas for its citizens, it seems only natural that other countries will follow suit eventually. El Salvador certainly isn’t the first one. Russia, China, and Australia have all come out against the popular crypto-currency somehow, shape, or form.
Bitcoin has been a cause of heated discussion among many different groups – from online forum users to government officials. I’ve read numerous articles on this trend within the past few days since Satoshi Nakamoto introduced Bitcoin to the world back in 2008.
The question you should be asking yourself, however: What is it about Bitcoin that makes some countries so eager to embrace and promote it while others fight tooth and nail against its existence?
A Russian website reports on the recent meeting between Russia’s President Putin and China’s President Xi Jinping. The article refers to the “Chinese Yuan” as the international currency of the future, destined to replace US dollar hegemony.
A few countries have made it clear that they want nothing to do with Bitcoin – and if their statements are anything like Russia’s, it’s because they see the world-changing potential of this technology. The idea that anyone can create money for free is just too much for some people to handle. As a result, they’re being left in the dust, while forward-thinking countries will eventually have an advantage over them in this new financial landscape.
I’m not saying that Russia and China want to stop Bitcoin’s advancement – they don’t. But they want to be at the forefront of it. So does El Salvadore.
Bitcoin gives any individual the opportunity to have their own money. I’ve seen people do just that in online forums to dismiss this fact. It’s not a joke, however. Countries who reject Bitcoin will have a tough road ahead as this currency (and the technology behind it) takes over the world.
Three Reasons Why Have El Salvadore Made Bitcoin An Official Currency
- There was a request from the El Salvadorean people.
- It’s been legal money for some time now in Russia and China, as well as other countries around the world.
- Satoshi Nakamoto is from Japan, so it could be said to connect with his origins (you don’t know for sure where he’s really from, and no one has contacted him).
Why Does Bitcoin Need To Be An Official Currency?
- It’s already the most popular cryptocurrency globally, with many benefits over other currencies.
- It can’t be manipulated by authorities or institutions because it is decentralized (because of blockchain technology).
- With Bitcoin, you can send/receive money anywhere in the world without paying commissions (the only fee you pay is for mining new coins, which will stop when all Bitcoins are mined).
- You can also use Bitcoin to help your country’s economy by trading bitcoins with other people.
Why Do Some Countries Reject Bitcoin?
- They refuse to accept that they’re losing their power and can’t control it anymore.
- Some countries even accuse it of being a “pyramid scheme.”
Why Does El Salvador Join Russia And China Among Countries That Support Bitcoin?
- El Salvadorean people want more economic opportunities (because of poverty)
- The government wants to give more opportunities to its citizens (for example, instead of paying commissions on money transfers, every citizen can now send -or receive- money for free).
- Better international trade relations. Being part of the Russian Eurasian Economic Union means El Salvadore will have better economic relations with other member countries, also pro-Bitcoin.
- Some people don’t understand what is behind this technology, and they can see it as a threat to their interests. Big companies and banks don’t necessarily want people to choose to create money for free, so they want Bitcoin to be banned by authorities globally.
- The more countries that accept Bitcoin, the more difficult it will become for others to ignore them. If El Salvadore’s decision can lead to a domino effect that results in other countries following suit, the future of Bitcoin will be even more promising.
- There have also been cases where people can’t use their bitcoins online or convert them because of the lack of regulation, making it illegal for exchanges to operate in those countries.