In a historic decision on Tuesday, El Salvadorian lawmakers approved the use of Bitcoin as legal cash, making El Salvador the first jurisdiction in the world to recognize cryptocurrency under these conditions. As the movement progresses, the momentum of the movement accelerates at an alarming rate.
Although this move is significant and unique, it may not be surprising, especially considering the growing ties between several countries in Latin America and cryptocurrencies, and the purpose for which they are beginning to adopt them. Although many people worry about decentralized and uncontrolled currencies, such as Bitcoin, it has not been accepted by the super-rich, but by those suffering from poverty in Latin America, despite widespread alarms. From Rio Grande in Mexico to the tip of Patagonia, cryptocurrencies have become the lifeblood of millions of people. Although El Salvador is the only country that has made a leap so far, it has already started a process that will undoubtedly affect more countries in the future.
Legislature of El Salvador
After the El Salvador legislature voted, officials from Argentina, Paraguay, Brazil and Panama flocked to social media to express their support for the election results. Based on the latest developments, Paraguay is more likely to follow El Salvador soon, or at least pass legislation in favor of cryptocurrencies. This movement was driven by one person, especially a 36-year-old Paraguayan legislator named Carlos Rajala. On Monday, Rajara, who publicly announced his support for Buqueler on social media, mentioned an “important initiative” that will “innovate Paraguay in front of other countries around the world.”
“As I have said for a long time, our country must move forward with the next generation of leaders. The time is up, our time is up,” he tweeted. Although the specific details of the plan have not been revealed, there is widespread suspicion that it will use Bitcoin and PayPal at the same time. According to reports, Rajala is also expected to introduce a law before the national parliament that will make crypto mining more accessible and encourage those interested in establishing their own crypto businesses in the country.
It is said that Rajala first started tracking the Bitcoin movement in 2017 and then became a cryptocurrency trader in 2019. After the El Salvador referendum, he posted a selfie of himself on social media, and his red “laser eyes” have become famous with Bitcoin supporters. Panamanian lawmakers are also mobilizing to propose new crypto-friendly legislation ideas. The country’s National Assembly member Gabe Silva shared a Twitter post from Booker on Monday and said he is working on a plan to submit to his parliament members.
Inflation, hyperinflation and deflation are all possible outcomes
Due to rising inflation and a large population lack of traditional financial services, Bitcoin and other cryptocurrencies have become a deeply ingrained way of people’s daily lives. Even deflation is combined with the high friction of financial transactions and many unbanked people in Latin American countries.
Indonesia is a large country with a population of more than 250 million. As many as 70% of them have no bank accounts but are equipped with mobile phones. “Till went on to say more. Although many people worry about a decentralized and uncontrolled currency like Bitcoin, it has not been accepted by the super-rich. In El Salvador, Bitcoin is officially recognized as legal along with the U.S. dollar. Cash, which is a common-sense method of reducing barriers to one of the country’s most important economic drivers: remittances from overseas. For updates on Bitcoin prices, please visit chesworkshop.org/bitcoin-up/.
Remittances—in this case, the cash or products transferred by migrant workers—approximately 20% of El Salvador’s GDP, and Salvadorans living in other regions send approximately US$6 billion (4.9 billion euros) to the country each year . nation. Here, you will notice many alternatives to digital currencies, so please pay attention to these positions. There is no doubt that every country is unique and faces a series of wonderful challenges.