As the date fast approaches bitcoin is about to become legal tender in El Salvador. Of course bitcoin has always been controversial since it’s inception. Obviously everyone here within the Leo Finance community knows why. But let’s bring those of us who are blockchain uninitiated up to speed.
The central banking model or legacy system is becoming obsolete. Endless amounts of debt are created at the expense of all of us. Most of the debt that has been created to the tune of trillions probably will never be paid back. Of course instead of cutting overall expenses politicos will make the average person suffer via forms of austerity.
In third world nations you obviously have continuous war, strife, instability, and hyperinflation. Since these nations usually lack infrastructure or leadership our nation has instituted puppet leadership. When this leadership collapses (it always does) the puppet runs away with the loot. Defense mercs get paid and we the people get stuck with the bill. (See Iraq, Afghanistan, Libya)
Sadly this has been an ongoing issue. The legacy system is multilayered and the ability to drain it dry has been the obvious goal for many of the well connected. So far many people behind the scenes have gotten paid. And so it continues since no one is paying attention.
However, bitcoin was invented because a group of people were paying attention. Much of the human suffering that exists could be directly tied to the legacy system. A system based on debt can only head in one direction. Fiat systems always return to their intrinsic value of zero.
So now this leads to the curious case of El Salvador. Making bitcoin legal tender is a bold move made by it’s Government. However, it’s also making some of the legacy system tentacles very unhappy. The World Bank has issued warnings against El Salvador instituting such plans.
Of course the World Bank would rather a nation be indebted to the legacy system and not free. Not to mention various back door channels to the IMF. Sadly these institutions have become bureaucratic nightmares in their own right. Poverty still exists in many third world countries. And even worse having a sovereign credit rating down grade basically crushes any nation.
So El Salvador has decided to try a different route. On Sept 7, 2021 bitcoin will become legal tender. Utilizing a deflationary currency will prove to be an interesting experiment. However, this grand experiment will come with it’s own set of challenges.
In the interest of transparency I would like to say I am not a bitcoin maximalist. I don’t believe in one currency to rule them all. Frankly, this is the problem with the US Federal Reserve Note. But I do believe in choice.
An individual should not be forced through coercion to trade in a specific currency. Rather, we should have the right to choose what currency we would exchange for our goods and services. This is ultimately the goal of blockchain.
Taking it a step further blockchain should be fun and enjoyable for all people. More importantly many blockchain platforms should be utilized for the entire crypto community. El Salvador’s troubling Article 7, which stipulates that every economic agent in El Salvador must accept bitcoin as payment for goods and services, gives the people limited choice.
Basically bitcoin should not become that which it has been fighting against since it’s inception. And although I don’t reside in El Salvador I will always side for the betterment of the people. The dollarization of the entire world has left many of the smaller countries behind. El Salvador is no exception.
However, not giving people choices could be a dangerous move. People want economic freedom. Economic freedom comes from choice. Not to mention the ability to transact freely. And when you “force” the individual blowback from the people is the natural reaction.
El Salvador must plan on also educating it’s populace on everything blockchain. Misinformation and an uninformed populace can also bring about detrimental changes. It’s human nature to hate that which you don’t understand. It’s is through understanding that the individual can make a rational choice.
El Salvador is on the right path in choosing blockchain. But they must understand the grand plan at hand. It’s not through one bitcoin blockchain but many blockchains. This is where freedom for all people exists.
I will be keeping an eye on this developing story. Although they are one of the first nations to embrace bitcoin they won’t be the last. Within the next few years we could see a dozen or so nations adopt bitcoin. Hopefully, some of these nations will instead create a memorandum of “All Cryptos Are Legal Tender”.
Give people the right to choose. It’s the blockchain thing to do. :)