Last month, Bitcoin was adopted as a legal obligation in Salvador, joining the US dollar.
The new Bitcoin law of the country, which will be applied from September 7, will allow Salvadoran to use Bitcoin (BTC) as a currency to buy goods and services, as well as pay taxes and debt.
El Salvador President Nayib Bukele said that the adoption of Bitcoin will benefit 70% of the local population who lacks access to banking services. He also thinks that this will attract investments and create new jobs.
However, the Bitcoin law has raised multiple concerns. The skeptics say that the strong volatility of cryptocurrency could constitute a threat to the country’s financial stability. A very low internet penetration rate, as well as a lack of education on bitcoin and cryptocurrency in the country, could also prevent Bitcoin from achieving general adoption in Salvador.
To stimulate the adoption of Bitcoin, President Bukele has promised to build the necessary infrastructure. This includes 1,500 automatic Bitcoin ticket distributors and a government portfolio intended to guarantee instant Bitcoin conversions into dollars.
Will this be enough for Bukele’s monetary experience to succeed? To answer this question, Cointelegraph discussed with the inhabitants of Salvador, as well as with criticism and supporters of the Bitcoin law.
Consult El Salvador’s full report on the YouTube channel of Cointtelegraph, and don’t forget to subscribe!
