With effect from today, El Salvador is the first nation in the world to officially recognise bitcoin as legal tender. President Nayib Bukele took to Twitter to declare another first – that El Salvador would become the first nation to announce the acquisition of bitcoins for its balance sheet.
El Salvador in Good Company
With the announcement, El Salvador joins an illustrious and growing group of individuals, funds and companies who have bought bitcoin for their balance sheet.
To keep track of the latest updates regarding institutional adoption of crypto, Crypto News Australia has compiled a list that is regularly updated as new participants choose crypto over cash.
Bitcoiners Back El Salvador #BitcoinDay
When Bitcoiners opined as to which nations would adopt bitcoin first, most suggested it would end up being ‘rogue nations’ crippled by sanctions – the likes of North Korea or Iran, who gained little from the current petrodollar system.
Instead, it proved to be a democratically elected government of a republic with a population just over 6.5 million people, a mere 13 years after its creation. It’s difficult to overestimate the significance of this.
As a sign of support for El Salvador, Bitcoiners around the world have decided to purchase US$30 worth of bitcoin to match the amount the government is offering citizens for downloading its digital wallet.
Even Michael Saylor got in on the act and according to his poll, over 82 percent of followers said they too would be buying US$30 worth of bitcoin.
Adoption Isn’t a Straight Line
The charismatic president of the Central American republic, who has some 2.8 million followers on Twitter, recognises that the road to adoption is likely to be bumpy.
Like all innovation, the #Bitcoin process in El Salvador has a learning curve. Every road to the future is like this and not everything will be achieved in a day, or in a month. But we must break the paradigms of the past. El Salvador has the right to advance towards the first world.
President Bukele via Twitter
The El Salvadorean government has been criticised by opposition parties as well as the World Bank and IMF – that much ought to be expected. El Salvador is disrupting the debt-based global financial system and in many ways is taking its destiny into its own hands. Its success is not a foregone conclusion but, for many, bitcoin offers hope.
El Salvador does not enjoy the “exorbitant privilege” of being able to print more US dollars to fund its economy. In that regard, the move towards bitcoin makes a whole lot of sense.
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