El Salvador to make Bitcoin its legal tender

El Salvador is a small country in Latin America known for its surfing spots on the Pacific ocean, many volcanoes and high poverty rates.

It is also known for the “Bitcoin Beach” – a coastal village of El Zonte that have been using Bitcoin as money for two years already, following an anonymous donation in 2019 that had one condition attached: bitcoins should not be cashed out. It has been a clear success, and the village and its neighboring area are now thriving.

That’s impressive, but soon El Salvador will have another quality to be famous for. It is now developing a bill to recognize Bitcoin as a legal tender and to buy it for its reserves, making El Salvador the first nation to adopt a bitcoin standard. El Salvador’s 39-years old President Nayib Bukele seems to have understood how powerful crypto potential is, and that it’s much wiser to take action on it instead of trying to fight it (uselessly, we all know).

The move is also a push back against “unprecedented monetary expansion” of the US, notably because of the Fed’s money printing frenzy, which endangers dollarized economies of developing countries like El Salvador.We can but applaud this decision, which will ensure El Salvador’s monetary independence and facilitate $4 Bn of remittances sent each year by Salvadorans working abroad. Not to mention the potential for development of the crypto-industry.

Well done !