Can Bitcoin play a role in the country's economic growth?

[laijsica]

Bitcoin can potentially play a role in the economic growth of a country which can make a huge difference in the multifaceted progress of that country. If Bitcoin can be integrated with the way in which the traditional financial system of the country is growing, the global economic system can be radically changed.
Here are some recommendations:

Enhancing Investment and Economic Diversification: A country can attract investment and increase the scope of employment through innovative activities using the wide range of technologies of Bitcoin and Blockchain, which can greatly contribute to the economic growth of the country. Countries such as El Salvador, for example, have explored Bitcoin alongside traditional financial systems to further strengthen their economies, and their scope continues to grow.

Financial inclusion of common people: Bitcoin can contribute to the economic growth of a country by including a large population by opening access to savings and buying and selling beyond the limited services like conventional banking system.

Exchange of Remittances: Remittances are very important for the progress of a country. Bitcoin can play a real role in reducing the fees and time of traditional services when citizens of one country send remittances from another country.

From an overall perspective, a country can explore Bitcoin with their economy in the light of wide knowledge of the strategies to increase the holding and increase the scope of transactions and access to the exchange, which can contribute to the growth of that country in a big way.

Looking forward to your more recommendations.

[Smartvirus]

Enhancing Investment and Economic Diversification: A country can attract investment and increase the scope of employment through innovative activities using the wide range of technologies of Bitcoin and Blockchain, which can greatly contribute to the economic growth of the country. Countries such as El Salvador, for example, have explored Bitcoin alongside traditional financial systems to further strengthen their economies, and their scope continues to grow.

El-Salvador did break the internet by having to legalize Bitcoin for a legal tender and since then, they haven’t been off the news as, it’s been met with mixed reactions based on market conditions. Even then, it is possible that Bitcoin and cryptocurrency assets could help the economic growth of a nation. This would be in terms of wealth redistribution.

Where, you can sell your Bitcoin far and near, get some of those funds from where ever to invest in something locally.
Also, by purchasing products from places foreign to you using Bitcoin, your very much involved in import and export of products which is a plus to the economy.

Financial inclusion of common people: Bitcoin can contribute to the economic growth of a country by including a large population by opening access to savings and buying and selling beyond the limited services like conventional banking system.

This comes in play in terms of, the opportunity Bitcoin offers where just anyone could buy in and buy in with as low as they’ve got, using the knowledge they’ve acquired to grow their portfolio.
With citizens being able to make a living through trade, the economy grows.

[CryptoBuds]

What role can Bitcoin play in promoting economic development? First, we need to find out what factors help the economy develop. The government must have reasonable economic policies to support people, create more jobs to help people increase their income, stabilize market prices, and fight corruption...in short, it must somehow ensure people's lives have quality. And to do all that requires combining thousands of factors together. Can Bitcoin do those things? Can it create jobs, can it attract investment into the country...? Looking at countries with leading developing economies, does bitcoin play a role in their economies? We should be realistic.

El Salvador's strengths are tourism and labor export. In addition, El Salvador's trouble is violence, they are the country with the most gangs in the world. But thanks to Nayib Bukele's strong repression policy, the country gradually stabilized and from there their economy gradually stabilized. Making bitcoin legal tender brought worldwide attention to them, but that is not what made their economy grow, all thanks to Nayib Bukele's economic policies.

[Solosanz]

Countries such as El Salvador, for example, have explored Bitcoin alongside traditional financial systems to further strengthen their economies, and their scope continues to grow.

El Salvador's economy can grow because Nayib Bukele is an iron fist president, he really care to combat against criminals, that's why he caught many people that have sign like a criminal, he might caught the innocent one.

Remittances are very important for the progress of a country. Bitcoin can play a real role in reducing the fees and time of traditional services when citizens of one country send remittances from another country.

I don't think this is correct.

Sure Bitcoin is cheaper it terms of foreign transactions compared to banks, but it's a case for the citizen, not the country. The country actually get benefit if the citizen use banks instead of Bitcoin.

[seoincorporation]

Remittances are very important for the progress of a country. Bitcoin can play a real role in reducing the fees and time of traditional services when citizens of one country send remittances from another country.

I don't think this is correct.

Sure Bitcoin is cheaper it terms of foreign transactions compared to banks, but it's a case for the citizen, not the country. The country actually get benefit if the citizen use banks instead of Bitcoin.

This is because the government can track the transactions if the user uses his debit/credit card, and that way they can charge taxes, but that can be done too with Bitcoin if the government owns the wallet just like it happens in El Salvador, we know Chivo wallet is a gov project to trace the coins from the civilians and that way charge taxes on their transactions. So, it's the same if you have to use your personal data or do KYC to spend BTC or Money.

[kryptqnick]

I agree with the op about the potential use cases of Bitcoin. Attracting foreign investment, creating jobs, allowing more financial opportunities for the unbanked or insufficiently banked, and saving up on international transaction fees are all good points.
But when we talk about Bitcoin, it's also important to consider the risks and challenges. One of them is that Bitcoin largely is not accepted directly as payment, so people often need to sell it for local fiat to make use of it. Also, storing it on centralized platforms poses a big risk of losing your funds, whereas storing coins yourself means that if you lose your password, passphrase or whatever, nobody will be able to help. You'll lock yourself out of your wallet. Then there's price volatility, as well as occasional fee spikes.
Both upsides and downsides need to be considered to make informed decisions.

[Woodie]

Let's just say we have seen collapsing economies around the world for countries  such as Venezuela, Zimbabwe etc ditch their currencies for crypto (bitcoin) because they experienced hyperinflation and in the process experienced more stability in their economies too which could suggest that growth 💹 can actually happen at the expense of their own currency...

And ultimately, for an economy to grow its not only about using bitcoin..other factors such as a conducive political landscape needs to exist, technological infrastructure needs to be there, the government needs to have laws to protect investors and a whole lot of other supporting factors need to happen to see economic growth!

[mirakal]

It plays some role but is not actually the thing that helps the country's economy grow because the government is not benefiting much from it. This is why we don't feel their support in adapting this technology, as they know that they couldn't get what they expected to happen. The government has no big interest in this because they see that they can't make money from it, unlike fiat. 

I think we should know that bitcoin is not made to help the country's economic condition, as it is not the solution to such a thing.
We can benefit from this, of course, but not to the extent that it makes everything possible. 
 

[TsenTsen]

If one day all of countries or most countries in the world have adapted and integrated cryptocurrency, in this case is Bitcoin, into their governments' fund system, the way we trade Bitcoin will be different. Us, independent traders, will rely more on big country's move/news towards Bitcoin in buying or selling our asset because it will highly affect the global market. The way I look into it is it will be more similar to how we trade Forex.

This is just my speculation, but sure for now Bitcoin would play a big role in a country's fund system since not many countries has adapted nor regulate bitcoin, and I believe that the first big country who has succeeded in fully adapting and regulating Bitcoin will be a pioneer which will affecting other countries who are trying to follow its path and might set the rules for Bitcoin regulation globally in the future

[Gladitorcomeback]

Financial inclusion of common people: Bitcoin can contribute to the economic growth of a country by including a large population by opening access to savings and buying and selling beyond the limited services like conventional banking system.

I believe it depends on the mindset or the thought process of the government and officials in charge of a country. In most countries, governments and authorities don't want financial inclusion for the common people because that would make them weaker over time. They wouldn't want the common people to have financial inclusion and be able to manage their finances on their own because if that happens, their people wouldn't depend on them anymore and that makes them lose control of the people.

Remember, the best way to control people is to always keep them dependent on you for at least something because as soon as they become completely independent of each thing, you won't be ruling them anymore and they won't need you.

A country that has a government that works only for the people and doesn't have such thoughts might have economic growth using Bitcoin.

[Fiatless]

Looking forward to your more recommendations.

OP's arguments make some sense to me. I have seen lots of posts that present Bitcoin as the solution to the economic problems of a country. From your post, we can conclude that Bitcoin can contribute to the growth of the economy because it could diversify the economy which could help the government increase its revenue through taxes.

Crypto firms in the country can also contribute to the country by creating employment opportunities. Research by K33 Research showed that even in the crypto-hostile China the crypto industry employed about 190,000 employees as of July 2023.

 

If good crypto policies are well implemented, some percentage of the unbanked population can have access to financial services. Bitcoin transaction fees can help reduce the high cost of sending money internationally but this will be when the mempool is not under attack.

[avikz]

Bitcoin can indeed play a very major role in the economic growth of a country. But the government needs to have a favourable legal framework to support it. Without the legal framework, no good will be done to the economy as a whole.

You can just think from the international remittance perspective. Many countries in Asia, receives multi billions in foreign remittance each year. In order to receive the remittance, the central bank of that country needs to maintain a network and pay a hefty fees to the middleman companies. Bitcoin can eliminate the need to have a middleman.

This is just one aspect. There are hundreds others were Bitcoin can help in the economy of a country, if handled in a right way!

[Jewan420]

How does Bitcoin help develop a country? Productivity and legal system play a major role in the economic development of a country. Is Bitcoin associated with these? When your country is developed in terms of production and the legal system to protect the productive resources is strict then that country is considered economically developed. You can trade with Bitcoin, but that will bring prosperity to you, not the country. Remember that personal development and national development are not the same.

[Cookdata]

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Exchange of Remittances: Remittances are very important for the progress of a country. Bitcoin can play a real role in reducing the fees and time of traditional services when citizens of one country send remittances from another country.

From an overall perspective, a country can explore Bitcoin with their economy in the light of wide knowledge of the strategies to increase the holding and increase the scope of transactions and access to the exchange, which can contribute to the growth of that country in a big way.

Looking forward to your more recommendations.

I hope you understand that government doesn't like what they don't control, if only Bitcoin is a government creation probably like US for instance, many countries will follow and do the same thing but it's a product of a believer call Satoshi who see potential in his creation and today, individuals has embrace it and so does cooperate institutions and many other countries. If at all perhaps countries were able to have a first hand in Bitcoin, they would have done this idea.

Another thing is that you should know is that countries only give priority to their own currency and any other currency they used as their own reserve, any other thing is a secondary. Government don't like something that doesn't allow them have it their ways and that's what Bitcoin does, it gives freedom and allow everyone enjoy the benefit that comes with it as long as you have the money to buy it.

[hyudien]

Before going any further, my recommendation for countries that want to adopt Bitcoin more widely is to visit El Salvador and build relationships with the government there to gain a lot of knowledge on the ground, in addition to the theory obtained, it would be much more important to go and witness for yourself the situation from the field process of how El Salvador finally adopted bitcoin. So this relationship is considered an official comparative study to study, research, and if possible invite El Salvador digital finance experts to explain everything related to bitcoin transactions in the country.

[Z-tight]

Before going any further, my recommendation for countries that want to adopt Bitcoin more widely is to visit El Salvador and build relationships with the government there to gain a lot of knowledge on the ground,

What for? BTC is a legal tender in El Salvador, but most of the population there do not use BTC, so many of them downloaded the Chivo wallet back then, but it was just to get the $30 bonus.

and if possible invite El Salvador digital finance experts to explain everything related to bitcoin transactions in the country.

I am having a hard time understanding you here, what do you mean by 'BTC transactions in the country', BTC tx's are recorded on the blockchain and isn't grouped by nationality.

[yudi09]

Bitcoin can potentially play a role in the economic growth of a country which can make a huge difference in the multifaceted progress of that country. If Bitcoin can be integrated with the way in which the traditional financial system of the country is growing, the global economic system can be radically changed.
Here are some recommendations:

Enhancing Investment and Economic Diversification: A country can attract investment and increase the scope of employment through innovative activities using the wide range of technologies of Bitcoin and Blockchain, which can greatly contribute to the economic growth of the country. Countries such as El Salvador, for example, have explored Bitcoin alongside traditional financial systems to further strengthen their economies, and their scope continues to grow.

Looking forward to your more recommendations.

Positively, the creation of Bitcoin has had a good impact on the global economic system even though some have viewed Bitcoin negatively from the past until now.
From a currency perspective, Bitcoin provides convenience for openness because anyone who uses it does not need something complicated. Basically because the one who controls Bitcoin is not another person or a third party but the individual who owns Bitcoin.

Because the use of Bitcoin can be used as a long-term investment asset because of hedging, it is no wonder that many countries continue to try to adopt Bitcoin in their own way.
If El Salvador dares to issue legal regulations to legalize Bitcoin as a legal tender, then when this American state becomes the center of attention of investors, it is not surprising. From the economic sector, for me El Salvador has made many changes even though I cannot show positive changes in a real example.

[Franctoshi]

Bitcoin can contribute to a country's economic growth by becoming a country's reserve asset,  using El Salvador as a good example, They started buying Bitcoin when it was around $40k, There Bitcoin portfolio would right now be in a good profit, whereas the profit which has been realized can be used to develop the country and the profit be put in the other areas of the economy, thereby boosting the economy of that country.

[Doan9269]

From an overall perspective, a country can explore Bitcoin with their economy in the light of wide knowledge of the strategies to increase the holding and increase the scope of transactions and access to the exchange, which can contribute to the growth of that country in a big way.

Bitcoin can change peoples live for good and the same can be seen with improving the economic situation of a country which adopt bitcoin, a good example is in El-Salvador, if we look into the way they were before the bitcoin adoption as a legal tender and how they have been transformed to what they were now, we could realize much of developments in which bitcoin has caused their economy to achieved, other countries may also plan along same pursuit with the use of bitcoin in boosting and transforming their economy.

[Nothingtodo]

It is okay for Bitcoin to greatly aid in the economic development of a country but there must be acceptance of Bitcoin in the political or economic context of that country. Bitcoin is like remittance if the people of the country can use it properly but most of the countries work against the acceptability of Bitcoin.