On Tuesday September 07 2021 Bitcoin becomes Legal tender in El Salvador - An Undeniably Historic Event

These are the discernible facts as we know them

• Since 2001 the U.S dollar has been the country’s official legal tender

• Bitcoin will be (the second) legal tender on September 7 2021

• Everyone who operates a business will be obliged to accept BTC for payments (with technological exemptions) If someone receives a payment in Bitcoin they can choose to automatically exchange it for (digital) dollars

• Every citizen will receive $30 if they get the government sanctioned ‘Chivo’ App

• El Salvador has a population of 6.5 million

• Remittances totalled over 20% of GDP ($5-6B Annually)

• Other significant financial sectors include agriculture and manufacturing

• ⁠El Salvador has an historical issue with wealth inequality (rural poor and urban elite)

• About 70% of the citizens of El Salvador are reportedly unbanked

• ⁠Wages and pensions will continue to be paid in U.S dollars

As with all things political, there is always more to the story than meets the eye, and numerous questions which are legally and socially complex are raised. Making bold assertions about the legitimacy of one party or another and accusing the other of corruption, is as old as politics itself. Without evidence, citations and sources, it’s all just conjecture or opinion based on biases and incomplete evidence.

• ⁠Its volatility could prove an issue, but then again, they do stand to gain from holding the asset as well. (Does the average citizen follow charts on the daily?)

• There are numerous international legal obligations that will have to be resolved - countries (including US) obliged to accept BTC as a legal ‘foreign’ currency.

• ⁠Implications for the unbanked becoming part of the ‘formal’ economy - more taxes paid but informal economies are often vital in small rural communities.

• Will the government be taking a large part of all the remittances that are sent, through their app? (To pay for essential infrastructure or off-shore funds?)

• The sheer fact that someone pays for their bus journey or groceries in bitcoin does not automatically mean they are financially secure, let alone wealthy.

• ⁠Will the government become more accountable and transparent as a consequence of Bitcoin adoption, or will it become even easier to syphon funds away from the people into the hands of corruption, nepotism and greed?

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However, one thing is clear, while the debates rage on, the notion that ideas need to be implemented, not just discussed, is essential for cryptocurrency to grow and thrive.

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