• Get Changera. Shop like a local anywhere you go.
Saturday, April 1, 2023
Bitmama Blog
Changera Virtual Cards
ADVERTISEMENT
  • HOME
  • NEWS
  • PRODUCT UPDATES
  • EVENTS
  • Bitmama ACADEMY
    • Crypto Basics
    • Tips and Tutorials
    • Market Trends & Updates
    • Crypto Glossary
  • VISIT Bitmama
No Result
View All Result
Bitmama Blog
No Result
View All Result

El Salvador’s acceptance of Bitcoin as a legal tender is a much-needed validation for crypto enthusiasts

Bitmama Team by Bitmama Team
February 8, 2023
in News
0
El Salvador’s acceptance of Bitcoin as a legal tender
319
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter

El Salvador, a Central American country, recently became the first in the world to pass a new law to adopt Bitcoin as a legal tender. The announcement was made after Congress approved President Nayib Bukele’s proposal to embrace the cryptocurrency in the country, on June 9. This was a move that delighted digital currency’s supporters globally. 

Several reports estimate that 70% of El Salvador’s population are unbanked, with remittance from Salvadorians in the diaspora accounting for an annual inflow of $6 billion. Bukele is optimistic that the new development will boost financial inclusion in the country. 

“It will bring financial inclusion, investment, tourism, innovation and economic development for our country,” Bukele remarked in a tweet before the congressional meeting on Wednesday. 

The-best-crypto-exchange-platform
The-best-crypto-exchange-platform

How Bitcoin will impact El Salvador’s economy

Prior to this development, El Salvador adopted the US dollar as its official currency. However, per reports, dollarization didn’t have much impact on the country’s economy. 

“El Salvador’s economic growth since adopting the dollar as the official currency in 2001 has not been any higher than it was during the years leading up to dollarization. In fact, El Salvador saw higher growth rates in the years prior to its adoption of the dollar. It is difficult to directly attribute the country’s failure to obtain a higher growth rate solely to dollarization, but it most likely did play a role.” an excerpt from Voices El Salvador reveals. 

Given the prevailing circumstances, crypto enthusiasts in the country share a similar optimism with the President, that Bitcoin supply in the country will strengthen its economy. 

Pay-bills-from-your-bitmama-crypto-wallet
Pay-bills-from-your-bitmama-crypto-wallet

On the Global front 

It’s still early to determine if other countries in the world will be quick to embrace crypto as a means of legal payment in El Salvador. For the most part, economic analysts and government officials around the world are still worried about the insecurity and volatility of cryptocurrencies. While most countries are trying to work around regulatory frameworks, other nations have instituted an outright ban on the use of crypto, terming it illegal. Iran, Ecuador, Morocco, and Bangladesh, and some of the countries in the world have clampdowns on crypto, while others like Nigeria and China are restricting the use of digital currencies by instituting rigid conditions. Yet, China has created its own digital currency which is controlled by its central bank and Nigeria’s Central bank has hinted at the possibility of launching a digital currency before the year ends. 

Critics are concerned that having a government-controlled currency contravenes the original purpose of cryptocurrency, which is decentralisation. But opposing arguments from regulators around the fraudulent use of digital currencies are too vivid to ignore. Crypto crime hit $1.7bn in 2018 according to CipherTrace’s annual Crypto Anti-Money Laundering and Crime Report and climbed 165% to $4.5bn in 2019. Although there was a sharp decline in 2020, where $1.9bn was recorded in crypto theft, the losses recorded year after year are bad enough to convince governments of cryptocurrencies’ insecurity. 

Bitmama-crypto-card
Bitmama-crypto-card

The bigger picture 

While the concerns around security loopholes of cryptocurrencies persist, private organisations spearheading the adoption of digital currencies are intensifying efforts to bolster the security of blockchain systems. Crypto exchanges like Bitmama, Binance, and Paxful are prioritizing secured trading and wallet safety for their users. 

In the long run, governments like El Salvador are seeking big opportunities beyond government-owned currencies to drive the massive adoption of blockchain-powered solutions to solve problems related to the economy and improve education, healthcare, and the standard of living of citizens. The goal is to increase the overall efficiency of the nation’s economic development and reduce the costs of technology initiatives and other essential government services.

Tags: bitcoinEl Salvador’s acceptance of Bitcoin as a legal tender
Get Virtual Cards on Changera. Get Virtual Cards on Changera. Get Virtual Cards on Changera.
ADVERTISEMENT
Previous Post

Here’s how to buy Bitcoin — and not get scammed

Next Post

How to Earn Bitcoin Rewards on Bitmama

Bitmama Team

Bitmama Team

Related Posts

How to send money from Ghana to Nigeria
News

How to send money from Ghana to Nigeria using crypto on Bitmama

March 29, 2023
How to list a crypto trade
News

How to list a crypto trade on Bitmama

March 28, 2023
How to swap crypto
News

How to swap crypto on Bitmama in 5 Simple Steps

March 27, 2023
How to buy airtime and data using crypto on Bitmama
News

How to buy airtime and data using crypto on Bitmama

March 21, 2023
Easily pay for your marketing courses on HubSpot using Bitmama Virtual Cards
News

Easily pay for your marketing courses on HubSpot using Bitmama Virtual Cards

March 20, 2023
How to pay for Google Ads with Bitmama Virtual Cards
News

How to pay for Google Ads with Bitmama Virtual Cards

March 15, 2023
Next Post
How to Earn Bitcoin Rewards on Bitmama

How to Earn Bitcoin Rewards on Bitmama

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

ADVERTISEMENT
  • Get Changera. Shop like a local anywhere you go.

© 2022 Bitmama - Best platform to buy, sell and trade Cryptocurrencies.

No Result
View All Result
  • HOME
  • NEWS
  • PRODUCT UPDATES
  • EVENTS
  • Bitmama ACADEMY
    • Crypto Basics
    • Tips and Tutorials
    • Market Trends & Updates
    • Crypto Glossary
  • VISIT Bitmama

© 2022 Bitmama - Best platform to buy, sell and trade Cryptocurrencies.