Is Bitcoin a Reliable Official Currency?

The El Salvador announcement about converting Bitcoin into a legal tender seems to have created a good sense of optimism for the market improvement, especially how we keep our eyes close to digital currency. B Bukele was talking about a new law on Bitcoin in the house in June this year. It takes effect this September as the company seems to have created a good buzz around the lovers of Bitcoin.

The law on Bitcoin getting passed would bring a former business and the current president of El Salvador. This leading country seems to be adopting digital currencies as a legal tender.

But as we see the initial excitement moving around this law, one can see things getting subsided, and we cannot take any rational look at the new law coming on Bitcoin law as suggested by El Salvador.

As per the new law, every financial expert or agent will have the capacity to accept Bitcoin as a payment option offered to them by anyone who has gained goods or services. As per the reports, the company is the first one that is now allowing people to start using Bitcoin as a regular payment option.

Since we recently saw one software guy investing 10K of BTCs, this digital coin has emerged as the popular and common currency for different kinds of payments, especially for those who are not willing to give away their prices with proper tracking.

Unfortunately, the company ES has always had a wrong and unstable kind of economy, and it remains one of the poorest nations in Central America.

Also Read: 5 Important Terms Related To Bitcoin

When you accept BTC as the legal tender, you see the government intending to generate economic stimulus. Still, we now see this ambitious program unable to come along with its sounds. It is the reason why you need a little about El Salvador and the plans for BTC. The country has a population of 6.4 Million. It has the lowest kind of GDP rates worldwide compared with other nations, even in Africa.

This very country seems to have started when it comes to adopting the US dollar in 2001 and its official currency. Before you see the start of converting into dollars, Colon has been using the money since 1892. Other nations to it, including Ecuador and Panama, seemed to have invested a lot in USD and now are willing to reduce it with the close network seen in the US.

If you look at El Salvador, the country has remained active in several civil wars. Most of these wars came in during the eighties. It was also seen in the Spanish colony many years ago.

It has led to an unstable kind of economic situation in the country. With so many wars, the money invested has gone to several million USD. The local economy has suffered a lot with the low income of families seen in the nation. El Salvador had a little less meager GDP rate compared to the countries around it, and their government seemed to be working hard while working with the poverty issues.

When it comes to accepting remittances from El Salvadorans engaged in working outside the vital source that remains, the livelihood of the local population, as per the reports, we can see the Pandemic has slashed down the remittance in a big way.

It went up to 40 percent, but now we know the recession and the company going abroad with massive money to the nation. This exact figure seems to be interesting when we know we have invested significant money in the country.

It has ended up giving a good growth of 23 percent to the total GDP of the nation. The lack of access in the banks also now includes the reason to access the same. Well, this would consist of the idea of what Bitcoin would become a reliable official currency.

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Wrapping up

With the named country above, we can see a classic example of bitcoin and other digital currency going legal at any place. As we know, the government gradually moves ahead with smooth transactions of virtual currency like fiat currencies, and El Salvador will set the trend in the world.

However, we have to wait and watch for this day. Furthermore, A cryptocurrency exchange must have these qualities.