We published an article last month The new currency of El Salvador. El Salvador’s bitcoin conversion has been in full swing for a few weeks, with many places being able to pay with bitcoin. The 40-year-old president of El Salvador, Want to see here Tweet about his Bitcoin promotion. However, it did not go without any hindrance, Sivo, the country’s digital wallet soon suffered a breakdown, making it impossible to pay for a while. Also, as with any major change, some struggles took place. This does not change the fact that President Phuhl is still very popular among the majority of the people.
It is a completely misconception that these protests are only conducted with a sense against bitcoin or other cryptocurrencies. As is often the case in Latin America, key decisions are made without a democratic process. Many of the protesters do not have to be against legalizing bitcoin and some of the protesters also have cryptocurrencies. However, they are angry that such a decision was taken without the consent of the people.
Protests erupt over the lack of democracy within the country and the lack of knowledge and understanding of many executives regarding Bitcoin law. Moreover, the vast majority of El Salvador’s population has little or no knowledge or interest in cryptocurrency. There are many other problems in the country and at this time the whole circus seems to be focusing only on this policy.
Ever since rumors began that Bitcoin would become legal, El Salvador has been flooded with foreigners. These mostly settled in El Sonde Bitcoin Beach. Through (anonymous) investments and large-scale use of bitcoin in daily life, the region has received a major economic boost.
Since 2019, Bitcoin has been used in El Sonde as a test for other parts of the country. However, there is no guarantee that the success of Bitcoin Beach will be the same in other parts of the country. The large investments, which were largely anonymous, were never approached by individuals nationally for testing on the Salvador Beach. However, it is plausible that without these large investments Bitcoin Beach would not have failed.
All of the loud voices against El Salvador advances are centralized systems. The IMF, US government and central banks give a good picture.
With the introduction of Bitcoin, the United States loses political and economic power in a country within its sphere of influence. El Salvador’s economy was previously based solely on the US dollar. It will certainly be the most influential currency in the future, but it is no longer the only one.
The IMF especially warns of bitcoin-related stability issues. In addition, a country must deregulate international law. These are good arguments, Bitcoin is not known for its stability and cryptocurrencies are still banned in many countries. However, the global trend seems to be increasingly favorable for the adoption of cryptocurrencies in the economy.
Also, do not forget the recent high inflation in Argentina and especially in Venezuela. Both are culturally and politically close to El Salvador. The exchange rate of Venezuelan bolivar against the euro has actually fallen to a level not seen on the chart.
Everyday life in El Salvador
However, in everyday life, the average does not change much for El Salvador. As said before, they have important things to worry about. Poverty, corruption, poor health and climate change to name but a few. However, the majority of people are curious about the possibilities, especially young people.
The biggest benefit to the public is the possibility of making international bookings for free. Converting digital forex money in El Salvador costs a lot of money, based on the purchasing power of many people. The high-income broker can now be disconnected. Also, in many families at least one person works abroad, usually in another Latin American country or the United States. Money sent back to El Salvador from there would also be much cheaper now.
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