Another Step Forward Hyperbitcoinization – El Salvador Becomes the World’s First Bitcoin Nation
The impacts of this decision are far greater than many realize.
It's done! El Salvador has just become the first Bitcoin nation in human history. This June 9, 2021, will forever be remembered in Bitcoin history as the day the bold president of a Central American country decided to fully embrace the Bitcoin revolution.
The Congress of El Salvador has just voted by a large majority the Bitcoin law presented by President Nayib Bukele.
I hear many opponents of Bitcoin trying to minimize what is happening in El Salvador and elsewhere in Central and South America. These opponents downplay it because “El Salvador is a country of just over 6 million people. This will not change the future of Bitcoin”.
Bitcoin will provide basic banking services to the 70% of unbanked Salvadorans
Disdain these naysayers show is the reason why over 70% of Salvadorians are excluded from the banking system, and more importantly, why hundreds of millions of people around the world still lack access to basic banking services when it is 2021.
A few powerful people in the West have been running a totally unfair monetary and financial system for several decades.
Bitcoin was created by Satoshi Nakamoto to give the people an encrypted P2P currency that they could own. Bitcoin is the people's currency backed by the people. Many opponents of Bitcoin refuse to face the facts, but what Bitcoin brings to the world is already essential:
Bank the Unbanked
Green Energy Incentive
Best Savings Technology
Be your Own Bank
Rules without Rulers
All companies with a store in El Salvador have 90 days to support Bitcoin as a means of payment
So the president of El Salvador has decided to give his country and his people a chance to take their lives to the next level with Bitcoin. The Bitcoin law that was just passed by Congress has implications that many people are still struggling to understand.
First, here is an image of the Bitcoin law that will go down in history:
Now that Bitcoin is an official currency, El Salvador will acquire $150 million worth of BTC to supply the population. President Nayib Bukele does not rule out putting Bitcoin in the reserves of the Central Bank of El Salvador.
All companies in El Salvador that have a store will have 90 days to comply with the law by accepting Bitcoin as a means of payment. Thus, American companies present in El Salvador such as McDonald's, Nike, Ford, Sony, Apple will have to accept Bitcoin under penalty of sanctions for non-compliance with the law in force in El Salvador.
This obviously concerns both physical merchants and merchants selling on the Web. Banks in El Salvador also have 90 days to act and comply with this new Bitcoin law.
As you can see, the impacts are major, and above all, there will be no turning back. The hyperbitcoinization of the world has reached a milestone with this first nation to officially recognize Bitcoin as a currency.
Hyperbitcoinization will accelerate dramatically over the next decade
Even more interesting is the reaction of El Salvador's neighbors. These countries understood that El Salvador would create jobs and attract many entrepreneurs from the Bitcoin world. Eventually, it will boost its GDP in the years to come. De facto, all of them are positioning themselves to say that they want to go down this path.
This includes Panama, Venezuela, Nicaragua, Paraguay, Argentina, but also Brazil and Mexico.
El Salvador was the first domino that will take with it all the rest of Central and South America. All of these countries are suffering from the US dollar system, and their populations already recognize Bitcoin as a plan A. Doing the same at the State level will be seen as an extremely popular decision.
What happens in El Salvador in the coming months will be extremely scrutinized. The success that Bitcoin will have there and what it will do for the thousands of Salvadorans who live in very precarious conditions will change the perception that many Westerners have of Bitcoin.
From being a simple speculative tool endorsed by criminals for money laundering, Bitcoin will be revealed to the wider public for what it really is: a unique opportunity for humanity to have a fairer system for the many in the future.
Hyperbitcoinization will accelerate dramatically over the next decade, and I won't be surprised if countries in Africa quickly follow the same path as El Salvador. If you are a Bitcoin HODLer, your best days are definitely ahead of you.
As a Bitcoiner for several years, I have to tell you that I didn't think this great day would come so soon. But finally, everything seems to be going extremely fast with Bitcoin, a monetary revolution that will change the world of the future for the better.
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