Can developing countries follow El Salvador use Bitcoin?

[teosanru]

Since El Salvador became the first country to approve Bitcoin as a legal tender, it has become international news and has attracted attention from the market, especially the cryptocurrency market. Many countries are paying close attention to this big move.
Using Bitcoin in El Salvador can bring meaningful social benefits to many people who do not have a bank account and cannot access basic financial services. People can benefit from the potential of low-cost remittances and durable savings accounts that are not affected by money supply expansion and hyperinflation. And with the advent of the Lightning Network, using Bitcoin as a payment method has become more feasible.

“We build our own future. So why do we have to resign ourselves to a dystopic future?” said President Bukele. “This will be a huge game changer not for El Salvador but for the world. It’s beautiful to be part of a huge change in humanity.”

The whole world is watching the important first step taken by El Salvador. Using Bitcoin is not just a trend, other countries will eventually learn that Bitcoin can increase national wealth, and some even keep it in their treasury reserves. With Bitcoin the longer you wait, the rewards will start to decrease. Countries at a disadvantage may consider taking measures as early as possible to give them an advantage over other larger economies. So will more countries follow El Salvador to use Bitcoin as legal tender?
https://www.forbes.com/sites/lawrencewintermeyer/2021/08/05/could-developing-nations-follow-el-salvadors-move-to-bitcoin/?sh=e930afe28b70

I know every crypto lover would want this but unfortunately, it's too difficult. It was easier for El Salvador due to a very basic reason, it didn't have any other currency of its own so its bank was not regulating the very primary function of controlling currency in circulation. Other Central banks, on the other hand, have a huge role in controlling the currency in circulation of their own legal tender and this plays a major role in the economic growth rate. So countries already with their own currencies aren't going to keep bitcoin as a secondary currency, it just defies their own currency too much. Developing countries are much more serious about this because they have to keep fiscal deficits higher to keep the economy going at a fast pace.

[just_Alice]

Let’s just say that El Salvador had a bigger motivation to switch to Bitcoin as compared to other countries. They didn’t have a currency of their own and were closely tied to the US dollar. Bitcoin is a way to develop an independent financial system for them. No doubt, that it will cost them a lot of money and time to make a complete switch.

For some countries, there’s no reason for such action. Take EU countries, for example, they’re doing fine with the current euro and I don’t see them adopting Bitcoin at a governmental level in the nearest future. The developing countries are more likely to follow the lead, but, I suppose, they want to see how this works for El Salvador first.

[uneng]

El Salvador was an exception. They have adopted bitcoin because about 20% of their income is generated by foreigner transactions from people who are natural from the country, but live abroad and help their families in El Salvador monthly. Those international transactions were heavily tributed by banks, so an alternative was needed and that was bitcoin.

If another developing countries are facing the same issues it's likely they can also adopt bitcoin, but I fear it's not the case of most developing countries. Usually the problem with developing countries are the oligarchies who rule them and at same time foreigner transactions income isn't considerable. So in no way bitcoin will be adopted, because it would prejudice the oligarchies which are already confortable with the currently system.

Why would african dictators or latin american caudillos want their people to have access to bitcoin?

[Dragonfund]

The developing countries are the worst to be friendly to bitcoin especially here in Africa where they should have risk some country reserve like allocating perhaps 2% to bitcoin but they wouldn't, they would rather allow their citizens involved in ponzi scheme and fraud each other and that's why the development remain stagnant.
On a second thought, I think they might fear volatility and since no one can be held responsible for huge loss, they wouldn't want to jeopardise the country reserves.

[Charles-Tim]

At the announcement of the El Salvador bitcoin adoption, it was stated in the news that the world bank and other international financial system gave the platform for smaller countries to adopt it thereby studying the development and progress of it from those countries.

Where did you read it in a news that world bank and other international financial system gave the platform for smaller countries to adopt Bitcoin? Countries have the right to do what they want, they have the right to make Bitcoin legal in their country irrespective of any international body. But, the good reason why El Salvador make Bitcoin a legal tender was stated, which is because 70% El Salvadorians are not even having bank account.

[cabron]

El Salvador was an exception. They have adopted bitcoin because about 20% of their income is generated by foreigner transactions from people who are natural from the country, but live abroad and help their families in El Salvador monthly. Those international transactions were heavily tributed by banks, so an alternative was needed and that was bitcoin.

If another developing countries are facing the same issues it's likely they can also adopt bitcoin, but I fear it's not the case of most developing countries. Usually the problem with developing countries are the oligarchies who rule them and at same time foreigner transactions income isn't considerable. So in no way bitcoin will be adopted, because it would prejudice the oligarchies which are already confortable with the currently system.

Why would african dictators or latin american caudillos want their people to have access to bitcoin?

Because same as the people in El Salvador they need to unshackle themselves and join the battle because cryptocurrency is remaking the system. The regulation laws are being debated in the American Senate these days, it could take more than 5 years before they could catch up the technology. There is enough time for every country to set up its cryptocurrency mining laws.

To whom shall they be with, to China with CBDC or countries using cryptocurrency that has more freedom?

[Wong Gendheng]

Yes and No, they can easily follow the El Salvador foot step and make Bitcoin legal tender in their countries but World has very strong influence in many of these countries because they are indebted to it, if not to World bank or IMF, they are to china that we know their stance on Bitcoin, those that can get these shackle of them will surely win long term

If El Savador can legalized crypto of course other countries can too, bitcoin and crypto are very open and easy to apply, as long as there is a serious desire from the government then crypto can be legalized and of course has a good impact on the country's economy.

[Coyster]

The developing countries are the worst to be friendly to bitcoin especially here in Africa where they should have risk some country reserve like allocating perhaps 2% to bitcoin but they wouldn't, they would rather allow their citizens involved in ponzi scheme and fraud each other and that's why the development remain stagnant.

I second you there, but I think some of this developing countries are just following in the footsteps of the developed ones like China. China and many other developed countries are working on CBDC's and regulating Bitcoin and other dex crypto, so their citizens do not have to choose the digital currency to hodl, cause the government knows majority would definitely choose Bitcoin; thus what they do is just issue sanctions and increase hostility to Bitcoin.

Having said that, instead of developing countries that are faced with myriad of problems to concentrate on solving them, as well as embrace Bitcoin as a currency that can help their citizens individually, they instead want to act like developing countries and try to create their own CBDC, Nigeria is a very good example, tbh, they really have no reason for working on a centralized digital currency, they rather should be trying to solve inflation issues affecting the Nigerian Naira and other pressing issues, but they want to follow in the actions of developed countries and sooner rather than later they will run out of resources to keep up and thus run into trouble.

[cabron]

The developing countries are the worst to be friendly to bitcoin especially here in Africa where they should have risk some country reserve like allocating perhaps 2% to bitcoin but they wouldn't, they would rather allow their citizens involved in ponzi scheme and fraud each other and that's why the development remain stagnant.

I second you there, but I think some of this developing countries are just following in the footsteps of the developed ones like China. China and many other developed countries are working on CBDC's and regulating Bitcoin and other dex crypto, so their citizens do not have to choose the digital currency to hodl, cause the government knows majority would definitely choose Bitcoin; thus what they do is just issue sanctions and increase hostility to Bitcoin.

Having said that, instead of developing countries that are faced with myriad of problems to concentrate on solving them, as well as embrace Bitcoin as a currency that can help their citizens individually, they instead want to act like developing countries and try to create their own CBDC, Nigeria is a very good example, tbh, they really have no reason for working on a centralized digital currency, they rather should be trying to solve inflation issues affecting the Nigerian Naira and other pressing issues, but they want to follow in the actions of developed countries and sooner rather than later they will run out of resources to keep up and thus run into trouble.

CDBC's I think will take a long time before they could really develop. China is ahead of time, they already have planned it a long time ago when the blockchain is at its early stage. Someone from China almost figured what could happen already that is why they are experimenting with digital currency long before their CBDC which used Alipay and Wechat.

Some developed countries are starting late, they haven't even come up with their digital currency name yet. But as of this time, US senate is already talking about their crypto infrastructure bill. Other countries will probably just adopt Bitcoin than having their CBDC launched hastily.

[Wexnident]

I'd reckon they'd want to watch what happens and then make a move based on that plus other considerations depending on the state of their country. Plus, it's still a questionable decision especially for developing countries since they need to take into account a lot of factors since adding crypto into their system may bring more damage than benefits. They may just be too assed to actually regulate or create laws that surround crypto, or is putting their attention into more important details that must be addressed. There's a lot of possibilities tbh, just that it's quite difficult to identify since each country has their own situation.

[Anonylz]

I don't think they will except they have a reason that compel them to do so, infact, it also has to do with the mind set and perception of a government, those countries who are not crypto friendly will not consider this option, rather they will try by any means to avoid it, El Salvador is a crypto friendly country already so it was easy for them to make such decision.

[fiulpro]

The countries who are adopting bitcoins right now are ofc. Going to have an initial advantage. They are going to have way more experience in the long run, there are many places which cryptocurrencies like bitcoins can improve in. There are other countries which are giving cryptocurrencies special advantage also, there are many places who have started bitcoins just because of the huge wave of crypto acceptance.

Yes and No, they can easily follow the El Salvador foot step and make Bitcoin legal tender in their countries but World has very strong influence in many of these countries because they are indebted to it, if not to World bank or IMF, they are to china that we know their stance on Bitcoin, those that can get these shackle of them will surely win long term

If El Savador can legalized crypto of course other countries can too, bitcoin and crypto are very open and easy to apply, as long as there is a serious desire from the government then crypto can be legalized and of course has a good impact on the country's economy.

I do think it's not just the government but also the people who have to ask for their rights, since many of us live in a democratic nation so we can ask for what we might want. For example, in India people actually fought for Bitcoins and other cryptocurrencies, even went to court !!

[jostorres]

Where did you read it in a news that world bank and other international financial system gave the platform for smaller countries to adopt Bitcoin?

But what I heard is, that world bank has denied the request from El Salvador to provide basic infrastructure for adopting and making use of bitcoin in exact similar manner of how people do use fiats but as of now I guess El Salvador might be hiring private blockchain experts to do so.

I do think it's not just the government but also the people who have to ask for their rights, since many of us live in a democratic nation so we can ask for what we might want.

All republic government must do that. It would be government's responsibility to prevent money laundering and all other problems due to a new payment system but they must work in favour of what are easing day to day life of a common citizen.

[Haunebu]

Firstly, the LN still has a long, long way to go since it's still in its early stages and its adoption rates are quite low currently which is why your statement regarding it is incorrect op.

Secondly, El Salvador is a small country which doesn't have much to lose by adopting BTC while bigger developing countries stand to lose a lot more(Power over the citizens etc) which is why some of them banned cryptocurrencies completely.

These corrupt governments will probably never change their minds regarding cryptocurrencies at any point in the future.

[Silberman]

Some countries are Bitcoin friendly while some countries are not. After the El Salvador move by accepting bitcoin as a legal tender, there has been two bills already in two countries to accept Bitcoin as a method of payment. The first was propose by a sanator in Uruguay to make Bitcoin as a means of payment in legal businesses, while the other is a new cryptocurrency-related bill in Ukraine which will allow payments in cryptocurrencies like Bitcoin (BTC). But both are not recognizing Bitcoin and other cryptocurrencies as a legal tender.

It is very possible some countries will become more bitcoin friendly, but some will be hostile against Bitcoin, even if not to comment much on China which is a developed country already, we can still comment on developing countries in North Africa and also Nigeria in the west Africa. Nigerian government generally are not hostile against Bitcoin, but the central bank is against crypto transactions. Some countries see Bitcoin as a means citizens can have privacy, able to make use of money without them (the government) involved, and because of this, they will against bitcoin. But no matter what, Bitcoin gives privacy and also appreciative, the reason people like to buy it.

What happens is that the move by El Salvador was very bold and no one saw it coming and this is creating a ripple effect in which everyone is trying to react to this on the best way they can, I really think we are going to see more countries eventually adopting bitcoin as legal tender but I think it is going to take time, and the reason for this is that it does not make sense for them to do it now, it is better to wait and see what happens at El Salvador and if everything is fine then they can do the same as well.

[Desmong]

Since El Salvador became the first country to approve Bitcoin as a legal tender, it has become international news and has attracted attention from the market, especially the cryptocurrency market. Many countries are paying close attention to this big move.
Using Bitcoin in El Salvador can bring meaningful social benefits to many people who do not have a bank account and cannot access basic financial services. People can benefit from the potential of low-cost remittances and durable savings accounts that are not affected by money supply expansion and hyperinflation. And with the advent of the Lightning Network, using Bitcoin as a payment method has become more feasible.

“We build our own future. So why do we have to resign ourselves to a dystopic future?” said President Bukele. “This will be a huge game changer not for El Salvador but for the world. It’s beautiful to be part of a huge change in humanity.”

The whole world is watching the important first step taken by El Salvador. Using Bitcoin is not just a trend, other countries will eventually learn that Bitcoin can increase national wealth, and some even keep it in their treasury reserves. With Bitcoin the longer you wait, the rewards will start to decrease. Countries at a disadvantage may consider taking measures as early as possible to give them an advantage over other larger economies. So will more countries follow El Salvador to use Bitcoin as legal tender?
https://www.forbes.com/sites/lawrencewintermeyer/2021/08/05/could-developing-nations-follow-el-salvadors-move-to-bitcoin/?sh=e930afe28b70

It's left to developing countries to decided what they want and not, whether they are ready to adopt Bitcoin or not. Bitcoin to me is still going to be the world currency after many countries have waited for it fall. Whether some are interested in bitcoin or not, a time is coming when people will be looking and regretting why thy they couldn't adopt it at the early stage.

[Vaskiy]

EL Salvador is a small nation. So grown countries won't give it a consideration. However the progress in the economic infrastructure and people's upliftment in economy will be watched by the world. If is very easy for countries like El Salvador to move into cryptocurrency usage. The same isn't that possible with other gbig nations. It is too early, let the changes begin El Salvador. Because when changes happen on the positive side automatically countries will move towards cryptocurrency adoption.

[Sithara007]

EL Salvador is a small nation. So grown countries won't give it a consideration. However the progress in the economic infrastructure and people's upliftment in economy will be watched by the world. If is very easy for countries like El Salvador to move into cryptocurrency usage. The same isn't that possible with other gbig nations. It is too early, let the changes begin El Salvador. Because when changes happen on the positive side automatically countries will move towards cryptocurrency adoption.

Accepting Bitcoin, without providing any special status should be fine with most of the economies around the world. But in case of El Salvador, they awarded the status of legal tender to Bitcoin and it is here things get complicated. Being a legal tender gives special rights and privileges to Bitcoin, as the traders can't refuse payments in BTC. And this is where it gets problematic. It is no longer voluntary, and this is the reason why large number of people are protesting against the move in El Salvador. But the president (Nayib Bukele) has so far refused to make any compromise.

[Tahsin Kabir Kollol]

Developing countries like El Salvador can use Bitcoin as a medium of transaction in many cases. While Bitcoin is not a fully-fledged transactional environment, it will in many cases be a lucrative and business opportunity for developing countries. In particular, it will play an important role in dealing with various countries that are subject to various sanctions due to political and military animosity. This would be a good decision, especially for those countries with high inflation rates. However, it is not entirely possible for an economically developing country to follow in the footsteps of El Salvador, as it is difficult for countries with developed economies to introduce a completely new technology exchange and conduct economic activities through it.

[imstillthebest]

Developing countries like El Salvador can use Bitcoin as a medium of transaction in many cases. While Bitcoin is not a fully-fledged transactional environment, it will in many cases be a lucrative and business opportunity for developing countries. In particular, it will play an important role in dealing with various countries that are subject to various sanctions due to political and military animosity. This would be a good decision, especially for those countries with high inflation rates. However, it is not entirely possible for an economically developing country to follow in the footsteps of El Salvador, as it is difficult for countries with developed economies to introduce a completely new technology exchange and conduct economic activities through it.

its okay if they cant follow the exact steps made by el salvador but accepting or not banning bitcoin is already a big thing .
bitcoin is not new and a lot of countries have been using it before , they can get an example or get data' s in these countries so that they dont need to conduct a manual activity of their own .