Can developing countries follow El Salvador use Bitcoin?

[jinneas]

After El Salvador accepted Bitcoin as a legal currency, some countries have begun to eagerly try their attempts, trying to prevent the use of Bitcoin. More and more countries in the world are interested in Bitcoin.
In countries with a high degree of economic expansion, the economy is often unstable, and holding the domestic legal currency often means that the purchasing power will be greatly devalued. The supply of Bitcoin is fixed and limited, and the government will not arbitrarily issue additional issuances based on demand to cause inflation. Therefore, most of the problems caused by inflation and subsequent capital controls can be effectively solved by Bitcoin. It provides a more reasonable way of resource allocation for an increasingly large and complex society with uneven resource distribution.

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[Leviathan.007]

Unfortunately, I don't think this going be happen anytime soon. El Salvador did this because they are a poor country and many people there don't have an official bank account or can not have one ever, also, their fiat money is worthless comparing to USD. While for example, talking about the US, they have strong fiat and will try to increase their fiat value, and accepting bitcoin as a legal currency is totally against it. Also, El Salvador is suffering from economic sanctions, and bitcoin transactions will help the government with this. Time after time, we can see more countries like El Salvador doing the same thing and accepting bitcoin as a currency, but this will take more time for developed countries to do so.

[Kakmakr]

I think you might have it wrong there.... Japan was the first country to accept Bitcoin as a "currency" .....not El Salvador.    It does not matter, it might be the first 3rd world country to accept Bitcoin as a currency..  

The thing with 3rd world countries are the following.... Many of them are run by very corrupt politicians and these politicians do not want their cirizens to have any kind of freedom. (Bitcoin is synonymous with financial "freedom" and they hate that.)

There might be the odd exception... but I am not going to hold my breath for that to happen in most of the 3rd world countries.  

[tygeade]

Nah, I don’t think that every country is going to do the same thing because El Salvador is doing it. And secondly I don’t think that bitcoin is going to magically lead them out poverty. All those who are unbanked in the country, how will they be able to make use of bitcoin if they are not able to make use of banks?

Let’s imagine that they have a smart phone to make use of bitcoin, the next question would be whether they have enough money to be able to invest in Bitcoin and make use of it? Because if they don’t have that money, then there is no way they will be able to make use of it. I think their government should put more effort towards making the country a safe place to live, and then look for better means to boost their economy. Corruption is one thing that kills a nation.

[Distinctin]

Unfortunately, I don't think this going be happen anytime soon. El Salvador did this because they are a poor country and many people there don't have an official bank account or can not have one ever, also, their fiat money is worthless comparing to USD. While for example, talking about the US, they have strong fiat and will try to increase their fiat value, and accepting bitcoin as a legal currency is totally against it. Also, El Salvador is suffering from economic sanctions, and bitcoin transactions will help the government with this. Time after time, we can see more countries like El Salvador doing the same thing and accepting bitcoin as a currency, but this will take more time for developed countries to do so.

Each country has different overview on bitcoin and if the government that is managing the whole country is totally against bitcoin, then there's no way that country will accept bitcoin.

However, with El Salvador, the government is taking new
steps on how to improve and boost their economy and since the government is positive on the outlook of bitcoin, so they provide good concepts about bitcoin to the people which in the end made bitcoin a legal tender in their country. I think its just a matter of good leadership. I'm not saying good leaders should learn to accept bitcoin but rather they should start taking leaps to combat the problems that are mostly the reasons why a single country is not making a progress, even if it means replacing the old government system and taking into consideration accepting new system for the finances to grow.

[paxmao]

On the ground, there are many developing and even semi-developed countries in which the citizens are using bitcoin as a daily routine. I am not sure if these countries will ever be as open minded as El Salvador, because at the end of the day having control over your own currency, even if is the shittiest currency ever, allow you to control your economy in a way that is simply impossible with bitcoin. Among other things, you can pay your public employees such as teachers or police with basically cow crap. Going to bitcoin for that is not an option.

[crzy]

On the ground, there are many developing and even semi-developed countries in which the citizens are using bitcoin as a daily routine. I am not sure if these countries will ever be as open minded as El Salvador, because at the end of the day having control over your own currency, even if is the shittiest currency ever, allow you to control your economy in a way that is simply impossible with bitcoin. Among other things, you can pay your public employees such as teachers or police with basically cow crap. Going to bitcoin for that is not an option.

There’s a lot of developing countries are open to this possibilities, but still they are not making any decision maybe because they are still studying the possibilities but as along as its not illegal in your place, that’s fine.

I live in a developing country and we can freely use cryptocurrency without violating any laws. Hopefully, they’ll
make it more legal later on so many people will start to adopt, we still need to be regulated because there’s still a trust issues that we need to address.

[arallmuus]

On the ground, there are many developing and even semi-developed countries in which the citizens are using bitcoin as a daily routine. I am not sure if these countries will ever be as open minded as El Salvador, because at the end of the day having control over your own currency, even if is the shittiest currency ever

There are plenty of business that probably have started to accept bitcoin but it is not the same as declaring bitcoin as a legal tender just like El Salvador did. If any other country out there declare bitcoin as their legal tender, it would be huge comparing to businesses accepting bitcoin.

This would cause a ripple effect to other countries out there to start considering bitcoin as their legal tender as well as starting to alert all major countries about the threat that bitcoin might pose. I personally would like bitcoin to stay aside of the equation as a digital asset because those major countries will most likely impose bans on bitcoin and cryptocurrency in general if more of those developing countries start to accept bitcoin

[Kittygalore]

Yes they can follow and they should follow because nothing good will come out if they don't do anything about it. I mean you're country is missing out of the money that crypto has in terms of taxation. Although I can see why they don't want to do that, not enough studies yet to prove the benefits of making bitcoin a legal tender besides watching what's going to happen to El Salvador, they're the experiment on this one.

[DrBeer]

Now explain - what difference does it make what they take for their currency - even cowrie shells, even US dollars or a Mongolian tugrik, or bitcoin, if the economy is ineffective, degrades, and the whole economy is built on the sale of some one resource !? The question is not in currency, the question is in the economy, an adequate and educated government, non-corrupt all branches of power, the desire of people to work, study, make laws more flexible, more aimed at improving the living standards of the citizens of this country!

[Princejebs]

Yes they can follow and they should follow because nothing good will come out if they don't do anything about it. I mean you're country is missing out of the money that crypto has in terms of taxation. Although I can see why they don't want to do that, not enough studies yet to prove the benefits of making bitcoin a legal tender besides watching what's going to happen to El Salvador, they're the experiment on this one.

Government are very inquisitive when it comes to asset they can't control, this is why they dislike when opposition party tackle their actions, bitcoin will always be something of nothing to them but as money in air just as Donald trump said some months ago on his tweet.
El Salvador is a country with less population with small GDP generated yearly, I think they are adopting that as aeans of making extra cash into their countr for development.

[famososMuertos]

So far nothing relevant has happened after the news, there was some intensity when the IMF expressed its position and the mention of some countries in following "perhaps" legalization as a currency.

If we refer to the article that you mention, it is only setting content in relation to the subject and it gathers something of what has happened after the news, good summary and analysis, but does not add concrete, only speculation.

After this opening of the bitcoin of El Salvador, if you want it announced years ago, it was a surprise for its prompt acceptance in the bureaucratic sense because if you want this country lives a very particular situation where a president, his leadership and a country situation were combined that together with their politicians approved this historical antecedent.

So it is not so much about who is the next country but rather that some of those paradigmatic variables occur.

[n0ne]

We shouldn't expect other countries to follow El Salvador, because already Japan had given importance to bitcoin as a currency ans supported vendors to use bitcoin instead of cash. Even it gave support through promotion. So Japan is the one to make it used as a currency. Now El Salvador will be watched. There is opposition from its citizens for the usage as currency and some street protest have taken place. This means people have got difference of opinion about bitcoin. Government needs to come up with systematic review to make them understand.

[Vishnu.Reang]

We shouldn't expect other countries to follow El Salvador, because already Japan had given importance to bitcoin as a currency ans supported vendors to use bitcoin instead of cash. Even it gave support through promotion. So Japan is the one to make it used as a currency. Now El Salvador will be watched. There is opposition from its citizens for the usage as currency and some street protest have taken place. This means people have got difference of opinion about bitcoin. Government needs to come up with systematic review to make them understand.

It is possible to make payments using Bitcoin in Japan, but that doesn't mean that it is considered as a currency there. And it doesn't have the status as legal tender. Only El Salvador has recognized Bitcoin as legal tender. I have heard rumors that more countries are looking forward to give the legal tender power to Bitcoin, but so far there has been no confirmation from any of these nations. Usage as a currency is different from being used as legal tender. For example, we can even use gold coins as currency.

[Baihaki Khaizan]

I think in the next few years there will be many countries that will adopt the El Salvador way of giving space to make bitcoin a legal medium of exchange.

although currently the debate continues, the effects of the development of cryptocurrencies continue to grow.

like an article I've read, which states;

2019, Libra – the digital currency created by Facebook-, received official recognition from the US Congress, although there is still debate as to how far digital currency can play in Uncle Sam's financial system. In early 2020, the congress proposed discussing cryptocurrency legislation after Covid 19 devastated the world economy. The road is getting open.

China has been secretly developing a digital currency system, the digital yuan, since 2014 before officially entering the trial phase at the end of 2016. A year later, the Chinese communist government formed a special research agency to develop a digital currency system. In 2019, China introduced a law called the National Cryptography Law. Undeniably, Beijing has carefully prepared the digital currency grand stage.

Not to be outdone by America and China, Russia finally made a breakthrough as well. In 2017, Vladimir Putin announced a project to develop Crypto Ruble, a version of a digital currency that is tightly controlled by the government via a blockchain system. According to forecasts, 2021 will be the year in which the first official law of the Russian government, which regulates the digital currency system, will be issued.

In fact, even a country like Iran is currently developing a digital currency legal system and is cooperating with Russia and Armenia. 2018, Crypto Real trial program did well. In 2019, the Central Bank of Iran officially launched the initial draft of a digital currency law, an attempt that many saw as serious evidence of the desert country's government's intention to enter the cryptocurrency era.

[DrBeer]

Now explain - what difference does it make what they take for their currency - even cowrie shells, even US dollars or a Mongolian tugrik, or bitcoin, if the economy is ineffective, degrades, and the whole economy is built on the sale of some one resource !? The question is not in currency, the question is in the economy, an adequate and educated government, non-corrupt all branches of power, the desire of people to work, study, make laws more flexible, more aimed at improving the living standards of the citizens of this country!

Economic factors are indeed the influence, so that currency fluctuations occur. on the other hand government policies and human resources are also determinants. when natural resources are abundant and human resources are low, they cannot maximize their economic growth

You understand that the problem, for example, of Venezuela is not in Maduro, Maduro has simply by his stupidity "hammered a stake in the economy." The problem of the Venezuelan economy is that it had a foundation (about 70% of budget revenue) OIL and income from it. And this is very bad - you cannot monopolize the revenue side with one resource that in the historical period showed fairly high fluctuations. You perfectly understand that if oil falls 10 times, then the budget will in fact be filled only 37 times from what it was literally last month, and how can the country live with it? Therefore, no matter what "candy wrappers" they take for their currency - an unbalanced and ineffective economy cannot be saved by "re-issuing" the national currency

[arwin100]

We shouldn't expect other countries to follow El Salvador, because already Japan had given importance to bitcoin as a currency ans supported vendors to use bitcoin instead of cash. Even it gave support through promotion. So Japan is the one to make it used as a currency. Now El Salvador will be watched. There is opposition from its citizens for the usage as currency and some street protest have taken place. This means people have got difference of opinion about bitcoin. Government needs to come up with systematic review to make them understand.

It is possible to make payments using Bitcoin in Japan, but that doesn't mean that it is considered as a currency there. And it doesn't have the status as legal tender. Only El Salvador has recognized Bitcoin as legal tender. I have heard rumors that more countries are looking forward to give the legal tender power to Bitcoin, but so far there has been no confirmation from any of these nations. Usage as a currency is different from being used as legal tender. For example, we can even use gold coins as currency.

El Salvador do it because they don't want to rely on USD, they also want to try on what will be the effect of accepting it so hopefully they will not put in danger since we know bitcoin have huge bear market season so hopefully we will not experience this kind of scenario again since many people from that country will lose a lot of money for holding bitcoin to use on their daily living. Yeah I heard that rumor to but for sure they are watching the effect on El salvador and if many country will announce that they will make it as legal tender then provably we cannot see a huge fall the same as before.

[Rahman11]

Bitcoin already uses by all over the world as a decentralized cryptocurrency, it’s impossible to accept and follow El salvador by all other developing countries, but bitcoin will rising it’s demand day by day in this world.

[LUCKMCFLY]

Recently some protesters from "El Salvador" demand that the government repeal the adoption of BTC, according to them they say that it can cause illicit transactions and the government was not consulted, really this is something retrograde with respect to what the alternative economy that BTC offers.

I think that the countries that can adopt BTC the fastest are those that have many economic problems, and high inflation, Venezuela, Argentina, among others, can be the candidate countries, in addition the prohibitions that the USA has imposed on many countries can also be those chosen to have BTC. I think that the countries that can later adopt BTC are those that have very stable economies, because an economy that can endanger the traditional and already established where everything is for them is not convenient for them.

[Questat]

I thought it brought some courage for them, for these developing countries but seems it looks like they are still not fully taking an action to adopt the system and legalize it. Although to be going that way, as we can see, they are not banning crypto at all which means that their people could still enjoy it even it wasn't legalize already. For me, it was good enough. I may understand their position as well and we can't deny that there are some issues in regards to the spread of fraud and illegalities. May the adoption could take for a while, well, we just have to wait for that moment as it certainly will come sooner or later.