Can developing countries follow El Salvador use Bitcoin?

[semobo]

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.

Even in a small country it is not possible to monitor the transactions of bitcoin then how can we expect the countries with bigger population to accept it? I am not against bitcoin but the government's reasons for using and not using bitcoin as legal tender is just for their personal benefits not for the wealth of their people.

[macson]

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.

On average, developing country currencies have loyal investors, different from poor countries where their currency is not at all interested.  when poor countries start to recognize bitcoin as their legal tender like el salvador then their economy will go up, in the next few years we will definitely see many countries starting to follow el salvador.

[blue_nexus15]

I think, Most developing countries are actively learning, adapting and discovering new ways to develop.  So most of the small developing countries in Southeast Asia also have increasing exposure to bitcoin and crypto like Vietnam, Thailand, Indonesia,...etc.  Of course, their government remains neutral.  They can look to the results of El Salvado to shape their future decisions about bitcoin legitimacy.

[Silberman]

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.

I really think that this is what it is going to happen, other countries right now do not really have any kind of incentive to try to make the very same move that El Salvador made, however they are going to watch very attentively the developments of this experiment, because if this works you can be sure that there are going to be a lot of small countries and even a few big ones that are going to adopt bitcoin in the very same way as they are going to want to obtain those benefits for themselves.

[Smartvirus]

I think, Most developing countries are actively learning, adapting and discovering new ways to develop.  So most of the small developing countries in Southeast Asia also have increasing exposure to bitcoin and crypto like Vietnam, Thailand, Indonesia,...etc.  Of course, their government remains neutral.  They can look to the results of El Salvado to shape their future decisions about bitcoin legitimacy.

Indirectly El-Salvador has become a lab rat of there own making to the rest of nations of the world and a huge stake for the crypto community as, its failure or progress would go a long way to determining its adoption for a legal tender. Also, it could go a long way to pointing out the issues with the system that could be addressee for its best use. There is a lot that can come out of this innovation and for the sake of the crypto community, we hope its good. Either it would be wise for developing nations to jump in at the moment or not, that is the case study with El-Salvador but, its much wiser to be early than later.

[Shenzou]

I don't think that other countries will ever think about adapting bitcoin this way, i mean El Salvador using it as a legal currency is great and all but i don't think it will have that much of an impact on its outside economy, and for other third world countries to even consider using it there has to be a powerful country like US or Germany actually making it a legal trend, so my hope is for one of them to do so and they are high for Germany since they have been making laws that favor cryptocurrency use.

[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.

Even in a small country it is not possible to monitor the transactions of bitcoin then how can we expect the countries with bigger population to accept it? I am not against bitcoin but the government's reasons for using and not using bitcoin as legal tender is just for their personal benefits not for the wealth of their people.

Well, there you are absolutely right, although compared to other governments I see that the president of "El Salvador" has a more liberal thinking regarding its economy, of course, it must also be taken into account that countries evaluate their opportunities based on In its capacities, El Salvador is a country that has a great capacity for survival thanks to remittances, the government of "El Salvador" must have its interest in Bitcoin, for example in Venezuela you can trade with BTC without any problem, but if you you are going to dedicate yourself to mining you must register with SUNACRIP, which is the government body to regulate mining activity, this is because the government has very large mining farms and from there it obtains liquidity to be able to support itself, each government will always have its interests first, and the people will always be a subordinate, the advantage is that there are many smart people who are getting to know the technology and everything that BTC stands.

[DrBeer]

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.

At the dawn of the cryptocurrency boom, I also dreamed that cryptocurrency would be freely accepted as a means of payment, but over time I came to the conclusion that this is a quality goal, and benefits for the economy or society. Here, like many decisions, there will always be 2 sides: positive and negative. So, I do not see now mega benefits from the introduction of the status of a full-fledged means of payment for cryptocurrencies. As a special asset for a limited range of payments - yes, perhaps, but not for everything and everywhere.

[Kusman]

Developing countries can actually follow El Salvador's actions about making Bitcoin legal tender. But it is really important that El Salvador becomes successful after this action. Because some people say that El Salvador people still aren't very interested in using Bitcoin. If this is true, this would help the country badly. All the effort can turn out to be in vain.

[BrianH]

What's ironic is the countries most likely to let this happen (poor ones) will gain wealth from the rich ones that will be tied down by KYC regulations. What have they got to lose? That's why there was such an uproar from the US and Europe about El Salvador declaring BTC legal tender. Hah!

There may be a wealth transfer from the rich nations to the poor, because of this.

BTC - the great disruptor.

[Vishnu.Reang]

At the dawn of the cryptocurrency boom, I also dreamed that cryptocurrency would be freely accepted as a means of payment, but over time I came to the conclusion that this is a quality goal, and benefits for the economy or society. Here, like many decisions, there will always be 2 sides: positive and negative. So, I do not see now mega benefits from the introduction of the status of a full-fledged means of payment for cryptocurrencies. As a special asset for a limited range of payments - yes, perhaps, but not for everything and everywhere.

The current system of governance in a majority of nations depends on borrowing money. Such a system depends on national currency, that is susceptible to inflation. Even the US Dollar has seen a sharp reduction in purchasing power recently. If Bitcoin is allowed to be used freely, then the national currency will be unable to compete (since BTC is protected against inflation), and ultimately the government will be unable to balance its budget. Even for El Salvador, I am not sure how they will manage the finances in the long term.

[semobo]

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.

Even in a small country it is not possible to monitor the transactions of bitcoin then how can we expect the countries with bigger population to accept it? I am not against bitcoin but the government's reasons for using and not using bitcoin as legal tender is just for their personal benefits not for the wealth of their people.

Well, there you are absolutely right, although compared to other governments I see that the president of "El Salvador" has a more liberal thinking regarding its economy, of course, it must also be taken into account that countries evaluate their opportunities based on In its capacities, El Salvador is a country that has a great capacity for survival thanks to remittances, the government of "El Salvador" must have its interest in Bitcoin, for example in Venezuela you can trade with BTC without any problem, but if you you are going to dedicate yourself to mining you must register with SUNACRIP, which is the government body to regulate mining activity, this is because the government has very large mining farms and from there it obtains liquidity to be able to support itself, each government will always have its interests first, and the people will always be a subordinate, the advantage is that there are many smart people who are getting to know the technology and everything that BTC stands.

Atleast they have the way for people along with government to make money but they should have dedicated board for monitoring them, asking the KYC details has their own pros and cons but I am not against giving KYC details to government if it is going to stop the illicit transactions happening in your country.

[istiak2277]

El Salvador's main source of income is from remittances. They have done it easily, but it won't be that easy for a country with many income sources. Every country makes money when people use their bank for the transaction. So if crypto has been used everywhere then this source of income will be cut down. I do not think a developing country would do that.

[conected]

El salvador really makes the right choice, with the trend of bitcoin now, and the increasing popularity that has been following bitcoin for years, we all are pretty sure that bitcoin will be big. Thus, be one of the first to make the decision using or adapting bitcoin is such a great step. I haven't following the news related it, but i hope it will be such a success. Maybe it will be hard for all countries to follow it, especially developing countries, but maybe if this step is such a great decision made by El salvador, many countries will see it and follow the same path. That way bitcoin will become even more great and valuable in the future.

- As other countries follow a similar path, I don't think economically and socially weak countries can compete for bitcoin buying with big countries, El Salvador with the model as a small country and try to take the first step, other countries will see them as prey and demand a share of bitcoin and that way, tough deals and broken relationships will happen. Tensions are pushed to new heights, it will surely destroy bitcoin when it is the cause of this nonsense, so using bitcoin in countries should be just a billboard and should be less widely adopted

[shogun47]

El Salvador's main source of income is from remittances. They have done it easily, but it won't be that easy for a country with many income sources. Every country makes money when people use their bank for the transaction. So if crypto has been used everywhere then this source of income will be cut down. I do not think a developing country would do that.

Hm interesting, but where does my logic actually fail? When El Salvador makes most of its income from remittances, why would they want Bitcoin to become legal tender? Doesn't that mean a severe cut to their main income source?

[TheGreatPython]

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

This is basically what we should do in our own finances as well, and when a nation doesn't do it themselves it fails too. Let's say I have 70% of my income from one thing (in investment, otherwise salary is 100% for most people) that means if that income is gone, I will not make any money at all. So, what should I do? Use that income to buy other stuff and improve the profit while having better diversification.

If Maduro or anyone else used that income towards buying more and more from something else that could profit them, that would mean eventually one day if oil worths zero, they will still be doing fine. Look at all the nations around them, they are not making or did not made money like Venezuela did, but they still managed to survive. However Maduro or others before him do have a big hand in this, they didn't diversify their income at all for decades.

[romero121]

EL Salvador is a country which has got population of about 7 million. It looks like an easy thing to implement the usage of cryptocurrency and legalize the same. The country has the low per capita income. After the adoption of bitcoin, if there is increase in the per capita income then it will be a big success for the country. The small country is much affected by volcano and natural disasters. For a country like El Salvador all that required is the usage from the low level people.

[Sayeds56]

EL Salvador is a country which has got population of about 7 million. It looks like an easy thing to implement the usage of cryptocurrency and legalize the same. The country has the low per capita income. After the adoption of bitcoin, if there is increase in the per capita income then it will be a big success for the country. The small country is much affected by volcano and natural disasters. For a country like El Salvador all that required is the usage from the low level people.

I think it won't be easy for every country  to follow the foot prints of El Salvador   which has very narrow base of its economy that is income from Remittances. Generally economies have broad base of income including exports where we deal with large number of countries and payments are made through banking channels by Fiat currencies so how this npayment issue will be resolved if buyer of your exports refuses to pay in Bicoin. In short there are lot of issues need to be resolved before Bitcoin payment system is adopted on Governments  level.

[Dread Pirate Roberts]

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.

Almost the same as what happened in Bali in the past, all merchants are willing to use bitcoin as payment and legal use because here in bali there are many tourist and international visitor. but all of that stopped and was banned by the government because of the regulation of payment instruments. so it all depends again on the regulations of a country.

[DrBeer]

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

This is basically what we should do in our own finances as well, and when a nation doesn't do it themselves it fails too. Let's say I have 70% of my income from one thing (in investment, otherwise salary is 100% for most people) that means if that income is gone, I will not make any money at all. So, what should I do? Use that income to buy other stuff and improve the profit while having better diversification.

If Maduro or anyone else used that income towards buying more and more from something else that could profit them, that would mean eventually one day if oil worths zero, they will still be doing fine. Look at all the nations around them, they are not making or did not made money like Venezuela did, but they still managed to survive. However Maduro or others before him do have a big hand in this, they didn't diversify their income at all for decades.

Now, if Maduro RE INVESTED the income from oil, when it was a hot commodity, he would be considered the savior of the country. BUT. He used the money for FOOD, and this is the dumbest option, but typical of most countries with a post-socialist / new-communist concept. As a result, it turns out, like yesterday "the people were fed" and even got drunk, but tomorrow came and it turned out that everyone ate, drank, and ... NO MORE MONEY!