TL; DR Breakdown
- Bitcoin is now legal tender in El Salvador
- Community must help BTC win the first round
- Other countries could follow suit if successful
The crypto world is still in a celebratory mood days after Congress in a Central American country named El Salvador voted to approve Bitcoin as acceptable legal tender in the nation. Since then, another country, Paraguay, has expressed interest in doing the same. To many, the acceptance of BTC by El Salvador is the onset of the proliferation of pro-BTC policies by other governments across the world.
However, El Salvador could be the most referenced case study when future debates are held in other countries on whether or not to accept BTC. One Ran Neuner gives a rather direct opinion on the possible implications of this apparent Bitcoin acid test. Ran is a popular BTC supporter and founder of Banter Capital/ Crypto Banter. He’s also the host of the “Crypto Trader” segment on CNBC.
El Salvador must win with Bitcoin
In a tweet, Ran said that El Salvador’s implementation of a favorable Bitcoin policy should be successful by all means. For this to happen, the community must be actively involved. As mentioned, El Salvador’s acceptance of BTC is an acid test that could make or break the ecosystem. This puts the community in a rather delicate balance considering that BTC has long been touted as the possible successor to the US Dollar as the global reserve currency. Some have also supported the coin’s battle of supremacy against Gold as the most preferred asset for store of value.
For these reasons, Bitcoin must succeed in El Salvador. If it fails, the ecosystem fails in that no more governments will be willing to experiment with it. On the other hand, if it wins, BTC will prove its long-touted narrative that it’s truly better than the rest of the cryptos and fiat currencies.
The news of El Salvador’s love for Bitcoin took the world by surprise. A bill was tabled to the country’s congress and passed within days of the President’s announcement. The acceptance of BTC as legal tender will greatly help the people working abroad in reducing transaction fees when sending money back home. If this works, other governments might want to adopt the trend, thereby consolidating BTC’s dominant status as a global currency. All it needs is just one win in El Salvador.