Hi everyone,
I'm guessing that probably by right now you would have heard the news about EL Salvador had just passed the bill in the parliament to legalize Bitcoin all over the country just a few hours ago.
No matter, here is a slice of the scoop and my take on the current matter.
Congratulations el presidente for the supermajority!
First thing first, I am going to be honest with you, it was actually my first time hearing the name of the country. But that does not matter now considering the country has now accepted Bitcoin legally.
Mind you, El Salvador wasn't the first country to legalize Bitcoin
After making a quick research, I found that El Salvador was not the only country that had legalized Bitcoin.
The image above shows that there are country that had actually legalized Bitcoin but as a form of micropayment and some crypto tradings.
However, unlike El Salvador, other countries has not 100% legalize Bitcoin. The difference is that El Salvador has now legalize Bitcoin in the country wholly.
Why does it matter?
From my point of view, this matters because
Legal = Adoption = Transformation
If you looked closely at the bill passed at the Congress, the legalization of Bitcoin in El Salvador was at the legal tender section.
Hence, looking at the definition of legal tender like so,
In other words, Bitcoin is now a full fledged payment method in El Salvador. Bitcoin is now a governmeny reserved which will be used by the government in any form of transaction aside from USD.
Each jurisdiction determines what is legal tender, but essentially it is anything which when offered ("tendered") in payment of a debt extinguishes the debt.
What is the future for El Salvador?
In my opinion, firstly, the finance sector in El Salvador will invetable face total transformation.
Next, business is going to shape into a new direction with the impact of Bitcoin, cryptocurrency and blockchain.
From here, the domino effect will soon happen. Jobs is going to take shape and shift towards blockchain and cryptocurrency where more skills in that area is needed.
Education towards cryptocurrency is highly required but moves at a fast pace.
New form of economic is going to happen where cryptocurrency has a major influence and most likely crypto-economy will be the forefront of the transformation.
Above all, I am excited to see how cryptocurrency adoption will soon take place at all the headlines and mainstream.
If El Salvador drives this at the right direction, who knows they might be the first ever country to have strong economy backed by cryptocurrency, Bitcoin.
But one thing for sure is that El Salvador is going to spear head the adoption of Bitcoin in other countries. On the other hand, all eyes are on El Salvador now watching at how they will bring Bitcoin about.
That said, nobody can predict the future and all of the above is just my humble opinion.