El Salvador Becomes First Country To Embrace Bitcoin As Legal Tender

pLawmakers in El Salvador made history last Tuesday when they voted to adopt Bitcoin as a new form of legal tender Congress approved President Nayib Bukeles proposal to embrace the cryptocurrency withnbsp out of possible votesnbspThe historic announcement garnered praise from leaders of other South American world leaders including Argentina Paraguay Brazil and Panama Most of which are now frantically trying to organize a plan to make their country the next to adopt favorable cryptocurrency legislationnbspppThe bill passed by El Salvador lawmakers explicitly referred to Bitcoin as a means ofnbspcircumventing hostile actionsnbsptaken by Central Banks such as the FED and the ECB In a tweet shortly before the bill was passed President Bukele said quotIt will bring financial inclusion investment tourism innovation and economic development for our countryquotnbspBukele also instructed stateowned geothermal electric firm LaGeo to develop a plan to offer bitcoin mining facilities using renewable energy from the countrys volcanoesppIn El Salvador around percent of the population do not use or have access to banking services This is particularly concerning for El Salvador considering remittances representnbspa hrefhttpsapnewscomarticlesansalvadorcoronaviruspandemicelsalvadorcddcaafabcbtextRemittancesaccountforpercentandbenefitaboutChouseholds targetblankroughly anbspof their annual GDP Using the traditional financial system sometimes up to of a remittance payment can be taken as fees by the various intermediaries that touch the transaction In a country where th of the GDP comes from foreign remittance the importance of a peertopeer monetary network like Bitcoin can not be understatednbspppnbspppstrongWhat This Means for CryptostrongppThis may be the biggest news for Bitcoin ever The adoption of Bitcoin on a national scale has long been the goal of Bitcoiners but few suspected that day to come so soon Similar to how Microstrategys Bitcoin announcement set off a chain reaction of corporations holding Bitcoin on their balance sheet this announcement will surely lead to a tidal wave of developing nations racing to adopt Bitcoin as a means of paymentnbspppnbspppstrongCurrency is a Game of PowerstrongppThe dominance of the United States on a global stage has largely stemmed from two factors their military and their currency With most developed nations now setting their sites on central bank digital currencies it seemed almost inevitable that power would continue to consolidate towards the largest governments in the world However announcements like these may change everything Now that the example has been set for countries to adopt a decentralized and nationless currency we are less beholden to the powers of our own Central Bank Decentralization always follows the path of least resistance and in doing so it has become the answer for the developing world The place that needs it the mostnbspnbspppFinally now that El Salvador has declared Bitcoin as legal tender in their country other countries must now view it as a foreign currency This means it will no longer be able to be taxed as an asset and must instead be thought of as a foreign investment incomenbspnbspp