El Salvador’s Congress is about to make Bitcoin legal tender. The anticipated passage of a new Bill law puts Bitcoin on the same level as the national currency and United States dollar.
The vote was streamed on Facebook at Asamblea Legislativa de El Salvador with a live play-by-play attended by the nation’s President and hosted by Nic Carter on Twitter Spaces.
ESTABLISHING A BITCOIN TRUST
The government plans to help its citizens trade Bitcoin in an effort to tame market volatility. A $150 million trust fund will support the nation’s Bitcoin economic project. It’s part of a move to help small retailers and individuals reasonably adjust during times of volatile crypto markets.
As Bitcoin matures and crypto gains greater acceptance, stable markets are expected. In terms of the fund’s profitability, any net loss or gain is thought to be relatively insignificant for the long-term health of the economy.
A RIPPLE EFFECT ACROSS THE REGION
As one might expect, El Salvador’s move is anticipated to influence the region and potentially the world. Consider El Salvador’s democratic and economic position.
Inclusive Economic Development
Important to note is El Salvador’s alignment with the United States in terms of democracy, law, and, most profoundly in this case, “inclusive economic development”.
Regionally, the area exists in a state of flux for U.S. international policy. By finding common ground through Bitcoin, El Salvador may one day be seen as the springboard for government acceptance of cryptocurrencies.
Beyond Blockchain Infrastructure
Globally influential corporations like IBM, Amazon, Google, Alibaba, and Oracle already actively employ blockchain as well as offer blockchain-as-a-service. Cryptocurrencies on the other hand remain a heated debate. Pseudo-blockchains, where participation is limited, is a far cry from fully distributed blockchain cryptocurrencies.
Freedom to Choose Bitcoin Wallets
During the Live Commentary Via Twitter Spaces, it was made clear that Bitcoin ownership would be truly distributed. While the government planned to support the development of a national wallet, it won’t be required to hold or use Bitcoin. The El Salvadoran official reiterated that Bitcoin transactions would be accepted regardless of which wallet a citizen wishes to use.
PLAY-BY-PLAY PASSAGE OF THE BITCOIN BILL
First vote passes with a supermajority as El Salvador’s Congress demonstrates profound support for Bitcoin. El Salvador’s political system employs a second round of voting which appeared cleared for passage from the get go. The final action is the likely signing (within the day) as the Bill makes its way to the President's desk.
CLEAN ENERGY VOLCANIC MINING
During the Twitter Spaces play-by-play, the topic of Bitcoin mining arose. While there’s no official plans at the moment, an idea struck; one that could prove to have global impact.
Clean energy through volcanic steam often goes unused. Bitcoin mining operations could be set up near El Salvadoran volcanoes to take advantage of otherwise wasted opportunity.
LIVE COMMENTARY VIA TWITTER SPACE
Nic Carter hosted the chat on Twitter Spaces where about 20,000 people listened to the play-by-play. El Salvador’s President was among the most vocal.
In good humor and seriousness, the group discusses an emergency Bitcoin Conference in El Salvador. An end-of-year conference is scheduled. Excited, the group seriously considered a conference to be held much sooner in celebration of the Bitcoin Bill’s passage.
CONCLUDING THOUGHTS
The distance from El Salvador to Venezuela is nearly half that of NY to LA (across the United States). The cultural differences between regions might be great, but Bitcoin solutions are not. Bitcoin Beach demonstrated the potential for crypto applications in El Salvador. The effort was even deemed an inspiration.
EOS already provides real world solutions within Venezuela. Bitcoin becoming legal will only further the spread of crypto culture in the region.
Finally, while Venezuela may not share a democratic view of the world, El Salvador does. United States officials, businesses, influencers, and individual citizens are now at the center of global discourse.
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The real signal is here. Rather than wasting time with all the current FUD, it's essential to focus on what's currently happening around Bitcoin. The revolution continues to move in the right direction.
I think this development means that what is to come is gaining great momentum.
El Salvador's choice to be a pioneer will have great results for them.
I hope other countries will follow soon and the avalanche will get bigger.
Thank you for the good news and article.