It may be a small country with just over 6 Million inhabitants, but today in a historic first, the world’s first crypto nation is born as El Salvador makes Bitcoin Legal tender.
On Tuesday September 7 2021, the country officially went live with the world’s first experiment to adopt cryptocurrency nationally.
The move to make Bitcoin legal tender has been ushered in by the relatively young (40 year old) President, Nayib Bukele, whose government has shifted to the king of digital currencies to avoid huge remittance fees which currently make up a quarter of El Salvador’s annual GDP.
Government of El Salvador makes Bitcoin Legal Tender
The government has also decided to incentivise citizens by giving each of them $30 in Bitcoin for downloading a government issued digital wallet. The government purchased 400 Bitcoins as part of the national crypto launch, and this is also as a hedge against potential inflationary pressure on the US dollar following the huge government stimulus packages (meaning more money printing by the Federal Reserve).
The project to make Bitcoin legal tender in the country has been titled “Chivo”, and businesses in El Salvador are now expected to accept Bitcoin in payments for goods and services. In addition, ATM’s across the country have been upgraded to allow customers to be able to buy Bitcoin, or convert it to cash, commission free.
El Salvador’s Crypto Nation move sparks the usual FUD
The move to make Bitcoin legal tender in El Salvador is not without it’s detractors, including many Salvadorans, who are concerned about Bitcoin’s wild volatility. Despite the fact that part of the move by the government is an attempt to reduce cross border money remittances, with President Bukele saying that the move to Bitcoin would allow citizens to save around $400M each year on commissions, many of the country’s citizens are mistrustful of cryptocurrency according to some reports.
Other issues raised have included the environmental impact of Bitcoin, as a Proof of Work cryptocurrency which requires huge amounts of electricity in order to be able to mine the crypto. The World Bank has already stated it’s concern over the CO2 emissions from Bitcoin mining, but of course it’s worth remembering that the World Bank is hardly a grass-roots institution who’s purpose is to ensure the wellbeing of ordinary people. It’s also worth remembering that the globalists are currently ramping up more climate change alarmism in their latest bid to control everyone and everything through a combination of fear and over-regulation.
There have also been a number of commentators who are concerned about how regulatory hazards for financial institutions, and who have, naturally, trotted out the now well aged argument about Bitcoin and money laundering and terrorism, as if criminals and terrorists have never financed their operations using Fiat.
In June, the ratings agency Fitch said that “capital gains will not be taxed, and taxes can be paid in Bitcoin, which could attract foreign inflows of Bitcoin to the country. This may increase the risks that proceeds from illicit activities pass through the Salvadoran Financial System.”
And directly after the law approving the moves was passed, the ratings agency Moody’s downgraded El Salvador’s credit worthiness, which also put dollar-denominated bonds under pressure in the country.
It’s plain to see that the globalists led by the international banking cartel’s are not at all happy with the idea of Bitcoin being legally accepted everywhere in a country, probably because they don’t get to control it. Here at SugarWired, as crypto enthusiasts, regardless of what happens, we applaud the decision by the El Salvadoran government’s brave move to be the first in the world to declare themselves a truly crypto country.