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Bitcoin Legal Tender To Be Adopted By El Salvador

El Salvador is poised to become the first country to make Bitcoin a legal tender.

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El Salvador is poised to become the first country to make Bitcoin a legal tender. President Nayib Bukele, the country’s leader, made the announcement during the Bitcoin 2021 Miami Conference.

According to him, he has concluded plans to send the proposed legislation to Congress in the coming week. Consequently, El Salvador would become one of the proposing Bitcoin legal tender countries.

“Next week, I will send to congress a bill that will make Bitcoin a legal tender” he said.

If the proposed legislation pulls through, the country would be the first to make a digital currency its official legal tender which would work side-by-side with the United States dollar.

The 39-year-old president hopes the country’s congress passes the legislation, and thus the Central American nation would be the first to adopt the cryptocurrency as a legal tender. President Nayib Bukele said that it will be a catalyst for job creation in the country.

70% of the population work in the informal sector. These mostly lack access to banking services. So, El Salvador’s economy relies heavily on remittances which make up approximately 20% of its gross domestic product (GDP). It is estimated that over two million Salvadorans reside outside the country. These regularly send money back home to friends and relatives. Salvadorans remit £2.9bn ($4bn) back to the country annually.

High Service Cost

There is a high demand for remittance services in the country. This is responsible for the high fees charged by providers which has been a source of concern to users. This is coupled with the fact that such transfers take days to be processed.

In some cases, funds sent from abroad have to be picked up in person. These are some of the bottlenecks that the introduction of Bitcoin legal tender in El Salvador would solve. According to Jack Mallers, founder of Lightning Network payment platform, Strike, there is a need for better alternatives. Strike will partner with El Salvadore to integrate Bitcoin into the country’s monetary infrastructure.

Such propositions beg the question, “Is Bitcoin legal tender?” considering that there are issues surrounding the digital currency such as network clogs that sometimes result in high transaction fees.

Mitigating Fiat-Induced Inflation

Speaking on the proposition, Mallers stated that the prospect is transformative. He alluded that Bitcoin is the greatest digital asset built on a monetary network and has the potential of shielding developing economies from that impact of fiat-induced inflation.

If the bill is passed, Salvadorans can conveniently do away with the present system and its encumbrances since Bitcoin transactions are near instantaneous.

Details on how the policy will work is still sketchy. Although there is no doubt that the bill will scale through the country’s legislative assembly controlled by the president’s party.

Analysts are of the opinion that a major restructuring of the country’s financial system and infrastructure will be required to make the policy a success.

Nonetheless, president Nayib Bukele stated that his government will grant digital assets businesses a safe haven in the country to expand its capacity as a blockchain hub.

Despite the positive impact that the initiative is expected to have on the coin market, some financial analysts cautioned that a country adopting Bitcoin as a legal tender may leave much to be desired. This is an allusion to the absence of a central control of the Bitcoin network. The implication is that actors may not be accountable because the Bitcoin space is still largely unregulated.

The move from President Bukele may not have come as a surprise to his supporters. Bukele being a young,  media-savvy leader is abreast of trends. This could also be responsible for his high approval rating of over 90%, which may be the motivation for the El Salvadore Bitcoin legal tender concept.

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Bitcoin in the 3rd world

Would BTC be good for the 3rd world, places like Africa, Asia and South and Central America?

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The following content was written by just a man on December 27, 2010, 02:51:16 AM in the thread Bitcoin in the 3rd world. All content is owned by the author of the bitcointalk.org post. (original)


Would btc be good for the 3rd world, places like Africa, Asia and South and Central America? Everyone knows about how Nigerians like their email, and mobile phones are doing well in terms of take-up generaly throughout the globe (except North Korea). So if people in the 3rd world started trading in btc more how would that effect the currency, how would it affect people in the US and the UK, would it lead to currency split, with African, Asian etc btc… does the future of bitcoin lie first outside of the West?

For instance in places like China that recently had an issue with trade denominated in QQ game-coins. The availability of un-ruled money being so easily accessible to people living under politically restrictive and corrupt systems (though in China’s case for instance no longer entirely ‘3rd world’), or places like in India or Africa where you have millions upon millions of canny hustlers, hungry and with many mouths to feed fighting day after day with every ounce of market nouse they have to eat, to send kids to school… if they could access the power of the bitcoin what would that do?

Bearing in mind I know about the infrastructure problem in the ‘3rd world’, but as emails from Nigerian princes and internet cafes intruded upon by holy cows go to show (true story), if people figure out a way to make a computer pay somehow, they will access a computer. My theory, if bitcoin takes off in the 3rd world or extreme economies like China then… boomtime revolution on all fronts.

The following content was written by Timo Y on December 27, 2010, 12:42:28 PM in the thread Bitcoin in the 3rd world. All content is owned by the author of the bitcointalk.org post. (original)


would it lead to currency split, with African, Asian etc btc…

A currency split is extremely unlikely, unless two networks become completely isolated from each other.

It is almost impossible to restrict the adoption of a Bitcoin clone geographically, because anyone can join the mining effort, and all it takes is one communications link to the main network and the blockchain of the isolated network will be rejected.

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does the future of bitcoin lie first outside of the West?

In my opinion yes. It it going to be hard to convince a Swiss person of the benefits of an alternative currency when what they have has worked pretty well for the last century.  (In fact, Switzerland already uses a decentralised alternative currency called WIR). 

Someone who has experienced the horrors of the Zimbabwean Dollar first hand, however, is going to be instantly sold on the idea of Bitcoin.

The following content was written by just a man on December 27, 2010, 02:21:59 PM in the thread Bitcoin in the 3rd world. All content is owned by the author of the bitcointalk.org post. (original)


In another forum where I post, the bitcoin is seen as a threat to the working class. It’s the working classes and the poor that mainly benefit from taxes in the west (well, theoretically) and for any economy the gobernment is Customer #1, so government spending of tax revenues pay for alot of the jobs in an economy. If people start turning stuff over in BTC then this starves the government of funds and they will no longer be able to provide public goods like schools and sidewalks and traffic lights, in the UK they will no longer be able to pay nurses and doctors or send dole-money or money for unemployed single mothers of small children. For me this is a bad thing.

On the upside they won’t be able to bail out inept and corrupt banks or buy million dollar bombs to bomb the peasants of weak countries on the basis of lies anymore.

I think though it’s true the working man and woman in the West might suffer from bitcoin, on the other hand in the 3rd world working men and women often don’t pay tax anyway, in Nigeria for instance the democracy is not so accountable to the people as the government is paid for by the Shell oil company and Russian mobsters anyway, so the people wouldn’t have to deal with a loss of services from the government with a currency like bitcoin, so one drawback they don’t have to worry about

Another thing about bitcoin is the indterest rate can’t be controlled, I know this is a key feature, but isn’t that something you need to be able to do? Assuming that you’re some sort of democratically elected body accountable to the people, you might want to be aqble to accelerate or break the economy every now and then when it’s over-heating or to ecourage it to move around more… Ireland could’t raizer their interest rates and they came off the road due to the reckless DUI of their banks… and having no breaks.

The following content was written by MoonShadow on December 27, 2010, 02:54:29 PM in the thread Bitcoin in the 3rd world. All content is owned by the author of the bitcointalk.org post. (original)


In another forum where I post, the bitcoin is seen as a threat to the working class.


Economic illiteracy is a widespread problem.

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It’s the working classes and the poor that mainly benefit from taxes in the west (well, theoretically) and for any economy the gobernment is Customer #1, so government spending of tax revenues pay for alot of the jobs in an economy. If people start turning stuff over in BTC then this starves the government of funds and they will no longer be able to provide public goods like schools and sidewalks and traffic lights, in the UK they will no longer be able to pay nurses and doctors or send dole-money or money for unemployed single mothers of small children. For me this is a bad thing.


For almost everyone, government is itself a bad thing.  You just don’t comprehend how much is taken from you in your “best interests”.  The most important tax that bitcoin deals with is the inflation tax, as inflation is functionally a hidden tax upon the entire monetary base.  It’s particularly regressive as well, most directly affecting those who save directly in currency denominated investments and those who are dependent upon a regular salary (i.e. working class) while most directly benefiting those with the greatest access to new currency (i.e. government, politicos & bankers).  Bitcoin isn’t really intended as a means to evade the kind of taxes that actually pay for public services, which don’t have to be provided by governments in order to be effective.

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Another thing about bitcoin is the indterest rate can’t be controlled, I know this is a key feature, but isn’t that something you need to be able to do?


No, of course not.  Wow, you have been indoctrinated well.  Did you attend a government school?

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Assuming that you’re some sort of democratically elected body accountable to the people, you might want to be aqble to accelerate or break the economy every now and then when it’s over-heating or to ecourage it to move around more… Ireland could’t raizer their interest rates and they came off the road due to the reckless DUI of their banks… and having no breaks.

The business cycle doesn’t require intervention, and historicly intervention has proven counter-productive.  The great depression in the US is a prime example of this, for it was primarily intervention that prolonged the pain.
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Do you think this Texas Congressman Steve Stockman is mining Bitcoin?

This Texas Congressman Steve Stockman Is Now Accepting Bitcoins For His Senate Run

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The following content was written by bitcoinforsale.net on January 02, 2014, 09:08:46 AM in the thread Do you think this Texas Congressman Steve Stockman is mining Bitcoin?. All content is owned by the author of the bitcointalk.org post. (original)


This Texas Congressman Steve Stockman Is Now Accepting Bitcoins For His Senate Run

Read more: http://www.businessinsider.com/steve-stockman-is-accepting-bitcoins-2014-1#ixzz2pELS89AN


Do you think this Texas Congressman Steve Stockman is mining Bitcoin?

The following content was written by DrG on January 02, 2014, 01:45:41 PM in the thread Do you think this Texas Congressman Steve Stockman is mining Bitcoin?. All content is owned by the author of the bitcointalk.org post. (original)


Wonder how he designates their value to the IRS for campaign funding. Price at the time of receiving the coins? Are they converted to fiat instantly?

The following content was written by Kluge on January 02, 2014, 01:48:55 PM in the thread Do you think this Texas Congressman Steve Stockman is mining Bitcoin?. All content is owned by the author of the bitcointalk.org post. (original)


Wonder how he designates their value to the IRS for campaign funding. Price at the time of receiving the coins? Are they converted to fiat instantly?
Probably. That’s what the FEC advised. They advise against using Bitcoin as a currency. Roll Eyes http://saos.nictusa.com/aodocs/201315.pdf

The following content was written by Chef Ramsay on January 02, 2014, 05:11:43 PM in the thread Do you think this Texas Congressman Steve Stockman is mining Bitcoin?. All content is owned by the author of the bitcointalk.org post. (original)


The big story here is that Congressman Stockman (who supports BTC, firearms, freedom in general and has a Ron Paul view on the FED) is running a primary against current US Senator John Cornyn (R-TX) and the winner will be the next Senator. First off, this man Stockman could be our BTC Ace in the US Senate as many parts of the American public are tired of incumbents and a growing portion of republicans are tired of Republicans In Name Only (RINOs) that run as conservatives yet govern like democrats. To give everyone an idea of just how bad Cornyn is, he’s a high ranking slob that needs a good ass whooping aided and abetted by us BTC Spartans.

His worst votes can be found in detail ->http://www.freedomworks.org/blog/jwithrow/senator-john-cornyns-top-ten-bad-votes but I’ll list them in brief:

1 – Voted to Let Harry Reid Fund ObamaCare
2 – Voted for the Wall Street Bailout (T.A.R.P.)
3 – Voted for Medicare Part D
4 – Voted to Increase the Federal Minimum Wage
5 – Voted for the Fiscal Cliff Tax Hike
6 – Voted against Fiscally Conservative Budgets (Sens. Paul’s & Lee’s)
7 – Supported Intrusive Internet Regulations (PIPA)
8 – Voted to Allow Warrantless Data Collection on American Citizens
9 – Voted to Raise the Debt Ceiling Eight Times
10- Voted to Reauthorize the Patriot Act

In short, I highly recommend (American BTC folk) donating whatever they can spare to help Rep Stockman take down and embarrass this kleptocrat Cornyn once and for all and send a shot across the bow of the hoi polloi club in the US Senate. This will also aid top shelf Senators Paul, Lee and Cruz and give a much needed ally to Sen Paul when he decides to run for President in 2016.

http://www.stockman2014.com/
Don’t forget to follow him on Twitter

The following content was written by phil_galinsky on January 03, 2014, 04:32:20 AM in the thread Do you think this Texas Congressman Steve Stockman is mining Bitcoin?. All content is owned by the author of the bitcointalk.org post. (original)


A 3:30 video of Rep. Stockman and Nick Spanos of Bitcoin Center NYC talking about their opinions on Bitcoin has been been published on Youtube in connection with the upcoming documentary Invisible Money:
http://www.youtube.com/watch?v=sZlB6gS7qHU

Invisible Money Documentary blog:
http://invisiblemoneydocumentary.wordpress.com/

Full Disclosure: I’m producing this documentary along with director Chris Cannucciari.
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