El Salvador becomes 1st Government to Embrace Bit Coin as a Legal Tender

El Salvador President Nayib Bukele is quite the visionary. This June 2021, the President of El Salvador Nayib Bukele just announced he is going to make Bit Coin a legal tender in their country. El Salvador is the 1st government to officially do this. This is quite historic. https://www.cnbc.com/2021/06/05/el-salvador-becomes-the-first-country-to-adopt-bitcoin-as-legal-tender-.html

I myself am no crypto currency expert, but I have read a lot on it out of curiosity. I have not invested in crypto currency since it seems very risky. And there have been some scams involving this. There are some cousins of mine who have began crypto currency mining and trying it out and there are even some people at my church who have begun investing in it. Most governments in the world have shunned crypto currency and bitcoin because, it makes it very hard to keep track of purchases. In fact, that is why criminals exploit bitcoin, to evade law enforcement. Most financial and business leaders such as Elon Musk and Jamie Dimon of JP Morgan talk very badly of bitcoin.

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So why is El Salvador making this big investment with Bitcoin?

When I heard the news I saw that there was a large Bitcoin Conference held in person in Miami Florida this weekend and the President of El Salvador made a video message in English to discuss why. In El Salvador 70% of the population does not have a bank account. 22% of the GDP of El Salvador is based on Salvadorans in the United States sending money back home through money orders. Already many Salvadorans have begun engaging in Bit Coin and it seems to work for them.

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The government of El Salvador has concluded that bitcoin is already serving as helpful to their economy so why not formally make it a legal currency. This will very interesting how it works. So many interesting factors here. Also what I didn’t mention, is that since 2001, El Salvador uses the US Dollar as their currency. That is because their previous currency became so useless after the Civil War in the 1980s. If this bitcoin experiment in El Salvador proves successful, maybe other countries might make it legal tender too? I can imagine really shady countries will probably do so. I am fascinated what will happen next!