Will governments capitulate and finally recognize Bitcoin as a legal tender?

[Sithara007]

El Salvador made Bitcoin a legal tender and they are already reporting massive profits from the current spike. The purchase price was $45-$48K and now Bitcoin is trading at $54K. If the other countries include Bitcoin in their forex reserves, then they will also benefit from it. But they are still attached to the fiat system and don't want to move away from it. I don't understand the point in creating forex reserves with treasury bonds from other countries. That serves no purpose and in fact it is advantageous only for the country that issues these treasury bonds.

[1714851051]

1714851051

[swogerino]

I think this is difficult to achieve in really well developed countries like the US and Germany for example.I intentionally took these two countries as an example because the US has the Federal Reserve which has a lot of power over the government and also in Germany there is ECB-European Central Bank which has also a lot of power over the Europe block.It will be very difficult for these specific countries to recognize Bitcoin as a legal tender based on what I said above.The good thing though is less developed countries are trying or want to try and follow the El Salvador example which is a great example to follow.

[Nathrixxx]

After the El-Savador acceptance of Bitcoin as a legal tender, many countries have push a step forward toward the adoption by passing the legislative bill, i have a list of many countries who have taken such step with number of votes to predict the next El-Savador... Base on the highest votes it is predicted that Paraguay, Venezuela, Anguilla, Panama and India were the first five with highest votes on the proberbility of being the next to adopt Bitcoin as a legal tender respectively.countries and regions that have passed legislation to enable cryptocurrency to be used as legal tender

Note that making Bitcoin a general acceptable legal tender by the whole word is a milestone journey on itself and has to a little vigorous challenges of ups and downs in a bid to eschew all forms of Cryptocurrency counter elements. But i can assure this can be achieved with time since the general populace of each country bids for the adoption and were involved actively in Cryptocurrency, in which adopted it will boost their economy, market cap, tax income, decrease poverty and promote independency,  you can imagine how the population of Cryptocurrency users increases each day.

[Lucius]

El Salvador has become an example that everyone refers to when it comes to accepting Bitcoin as a legal tender, but most forget that the country has not had its national currency for 20 years, and that it uses the US dollar as a replacement. To this fact it should be added that they have a president and a government that is for Bitcoin, so it was relatively easy for them to put their plan into action.

On the other hand, any other country that has its own currency would, by recognizing Bitcoin as a legal tender, in some way recognize that their own currency may not be good enough. Therefore, I see as potential candidates who will follow the example of El Salvador those countries that do not have their own national currencies, but only if it turns out that the thing works - of course all eyes are on El Salvador now.

You pay exactly $4 to send $100, that's not 30% and not 40%.
If you would send $1000 the fee would drop to 0.7%.

I don't know where those numbers come from, but most obviously think that the WU is a very expensive way to transfer money - but you've shown many times that it's not. I can't say which money transfer services are used by the average El Salvador citizen living and working in the US, but we can already see examples that show significant savings when using a Chivo wallet.

So far, 30 bitcoin ATMs to send remittances have been installed in Atlanta, Chicago, Houston and Los Angeles and Bukele says around $2 million is being sent via Chivo daily.

Juan Moz, a construction worker who has lived in the United States since 2005, recently chose Chivo to send remittances home to his family — a decision he said saves him up to $18 when compared to traditional money transfer services.

[paxmao]

A bit of an aggressive language ... capitulate... we could even go further and say concede defeat or even surrender to the obvious

I think that bitcoin should be accepted by the governments as a way of payment, however it does not have the right characteristics to be the only currency of a country because is specifically designed to avoid flexibility in the monetary policies, which means that it does not allow you to play politics.

[ChiBitCTy]

Very interesting, I had not know that these other countries were considering adopting bitcoin as legal tender as well.  I am not sure that any of the major world players will be considering adopting bitcoin or other cryptocurrencies anytime soon however.  Especially countries like the United States who currently hold the worlds reserve currency.  Maybe one day though.

[palle11]

Superpower countries will be the hardest one to budge in, other countries wouldn't have that much problem so I am pretty sure that this is going to be a chain reaction that has the superpowers at the end of the domino line.

They are seating on the fence actually but I like that they are not making it transaction a ban for the users. It is just a moment of time for that legal status to happen because taxes are collected over the transaction so what else? IMO collection of taxes is a driver to making a legal status of it too, maybe it will take the masses to agitate over that. However there are bitcoin mechines all over the EU and USA , it is just as saying it has a legal backing already.

[fullhdpixel]

A bit of an aggressive language ... capitulate... we could even go further and say concede defeat or even surrender to the obvious

I think that bitcoin should be accepted by the governments as a way of payment, however it does not have the right characteristics to be the only currency of a country because is specifically designed to avoid flexibility in the monetary policies, which means that it does not allow you to play politics.

Governments will not "capitulate" of course, nor will concede defeat. However letting crypto become bigger and bigger would mean fiat will grow smaller and smaller which would result with fiat not being used as much which would weaken the governments. That is the type of situation we are in at El Salvador and in the long term El Salvador will turn to becoming fully crypto as well, of course optional but still if a nation is 90% crypto using and only 10% fiat then the fiat of that nation will suck.

If bigger nations do that as well then we are going to see governments have a lot less power. This is why it is sort of like "capitulate" when they recognize bitcoin as legal tender.

[verita1]

OP has mentioned something key like that the adoption of bitcoin in other countries with stronger economies will not happen the same as that of El Salvador.

But bitcoin adoption is very close. Brazil has one of the largest economies in South America. When these countries El Salvador, Brazil show all the progress they make after starting to use bitcoin, there will be other countries that will want to do the same.

[adzino]

El Salvador made Bitcoin a legal tender and they are already reporting massive profits from the current spike. The purchase price was $45-$48K and now Bitcoin is trading at $54K. If the other countries include Bitcoin in their forex reserves, then they will also benefit from it. But they are still attached to the fiat system and don't want to move away from it. I don't understand the point in creating forex reserves with treasury bonds from other countries. That serves no purpose and in fact it is advantageous only for the country that issues these treasury bonds.

El Salvador didn't make bitcoin a legal tender so that they can make quick gains from the rise. People should stop thinking that bitcoin is only made for making profit by investing in it. If people keeps on using bitcoin as a store of value, we will never see bitcoin being used as a mainstream currency. El Salvador did it because they don't have their own currency. They did it because they saw how easy it is to make cross border transactions with bitcoin. It will make it easier for people to send money back to the country cheap, fast and easily which in turn will help the counties economy to grow.

[cafucafucafu]

No, but I don't think it's necessary to progress the adoption of BTC forward.

Governments are going to be pretty draconian when it comes to BTC regulation because of the fact that it challenges their fiat system. So definitely don't expect any positive regulation any time soon.

But that's not really the end of the world. Legal tender is sort of this buzzword that is chucked around and means a lot less than what it sounds like.

[jaysabi]

...

After El Salvador regulated Bitcoin as legal tender, other countries are tempted to follow in its footsteps:
If you buy $1,000 of Bitcoin, the price goes up 10% and you buy a $5 coffee at Starbucks, you will owe taxes on 10% of that $5. If the next day the price of Bitcoin goes down and it is only 5% above your initial investment, when you make a purchase you will also owe taxes but only on 5%.

...

What do you think?

This makes perfect sense even though it's clunky as hell.  The American economy is denominated in US dollars.  If you make a profit on property or investments, you owe taxes on that no matter the medium your profit comes from.  It's the same for foreign currencies as well, if you make a profit trading in and out of them from US dollars, you owe taxes on those gains.  Obviously for people who want to use bitcoin as a currency that presents a bookkeeping headache, but then again people who actually want to use bitcoin as a currency and not a vehicle to speculate are the vast minority so it doesn't matter much in the big picture.

[Poker Player]

A bit of an aggressive language ... capitulate... we could even go further and say concede defeat or even surrender to the obvious

Oh, but do you think that governments have received Bitcoin in a, let's say, friendly way? The initial reaction from governments was aggressive, and not only from governments, but from central banks and other financial entities linked to governments and their currency creation system.

Leaving aside the governments that have banned cryptocurrencies, the initial reaction of governments when they said anything about Bitcoin it was to warn of the risk of fraud, scam, in short of losing their money that those who invested in it could run.

There has already been a first capitulation (yes, capitulation, which although a bit aggressive is quite descriptive of reality) to the extent that governments have passed regulations that consider bitcoin as property or a financial asset.

Why do you think Satoshi disappeared? Try creating a new currency by showing your face and let me know if governments treat you in a friendly way. The ability to create currency is reserved by the states for themselves and the entities they designate as central banks (supposedly independent, lol) and creating a currency without the permission of the state is severely punishable.

[LUCKMCFLY]

What I think of the governments that oppose BTC in the first instance is that they are looking for prominence to show that BTC is not the way out, although for many it is the only way out, and sometimes they do a whole "theater" for the end accept the reality, and the reality is that the whole world will have a digitized economy at least 90%, the other 10% can be left as a tolerance range for those countries in resistance that always give something to talk about.

And what moves the world is money, and everyone likes money, it is a lie those who say they are in governments or banks who love their work, but you will not work very hard sacrificing many things that you like to do without payment, and how to all governments and everyone like money and above all to have it, how can they refuse money? that is a fundamental principle.

[redsun114]

It’s just a matter of time before a lot of countries will adopt Bitcoin as legal tender. As more and more of them continues to do this, they will be motivating others to also take this same step. Then I don’t really think it is necessary for every country to make it a legal tender, it can just be another legal asset that anyone can invest in and also be used for transactions, simple.

Before that, now cryptocurrency is already legal in so many countries, so it is not really all of them that are going to consider it as a legal tender. It can just remain as an asset that people can freely be making use of in their country.

[tulusikhlas]

There is always an opposition against adopting Bitcoin in every country. As is the case in El Salvador not all accept Bitcoin but all have alternatives to using other available finance. I'm not sure for all countries really recognize decentralization that they don't fully control the rate of transactions. Because if they finally admit it, then at least there must be a tax that the government should get from it.

[dimonstration]

There is always an opposition against adopting Bitcoin in every country. As is the case in El Salvador not all accept Bitcoin but all have alternatives to using other available finance. I'm not sure for all countries really recognize decentralization that they don't fully control the rate of transactions. Because if they finally admit it, then at least there must be a tax that the government should get from it.

Only those who will able to provide system in crypto wherein they can put tax in every transaction as well monitor every transaction will make crypto legal, though it will still seems impossible as crypto is made to be decentralized and unknown in terms of making transactions which make it unique from the government the reason why it will be hard for the government to acknowledge it as legal. It is still questionable sometimes in banks when you about to cash out money or when your account got unusual amount of money that they questioned or investigate the transactions since they still unfamiliar yet on crypto or it was just here in my country.

[jaysabi]

It’s just a matter of time before a lot of countries will adopt Bitcoin as legal tender. As more and more of them continues to do this, they will be motivating others to also take this same step. Then I don’t really think it is necessary for every country to make it a legal tender, it can just be another legal asset that anyone can invest in and also be used for transactions, simple.

Before that, now cryptocurrency is already legal in so many countries, so it is not really all of them that are going to consider it as a legal tender. It can just remain as an asset that people can freely be making use of in their country.

Really it's only the developing nations with weak national currencies and troubled economies that are considering this.  There are no first world countries with a strong economy and a strong currency that are entertaining bitcoin as a viable national currency.  An optimist would call this "innovative" while a pessimist would call it "gimmicky."  I'm closer to the latter group, because at the end of the day, bitcoin won't solve these nation's economic woes, and it's not going to prove to be a very useful currency if it can't hold a steady value (unless that country is experiencing hyperinflation).

[Argoo]

The legalization of bitcoin and other cryptocurrencies should not be confused, that is, the determination of its official status and the establishment of rules for walking in the state along with the national currency, which continues to occur in a number of countries, and the adoption of bitcoin as a national means of payment, which happened in El Salvador. States can recognize bitcoin as a means of payment, however, this is unlikely to be the national currency. The state, and especially its economy, functions on completely different principles.

[TheEconomists]

With many government of the world will accept Bitcoin and other crypto currency as a legal tender but before then government will to regulate it's operation and other activities. If the happen issue of anonymity will no longer exist because government will have to know each every account owners to enable them the compliance for tax payment.