Discussion on Bitcoin by El Salvador and 44 Other Countries

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The conference is going to be all about Bitcoin Trading Fundamentals. The host for the event is El Salvador. The country’s President has seen it fit to include 44 other nations in the event. The idea is to initiate discussions regarding varied things. One of them is the digital economy and its status. Another is about financial inclusion. A third topic relates to banking the unbanked populaces. Finally, the attendees will focus on BTC’s rollout, and the advantages that will follow.

The highly popular Bitcoin smart outlines everything about Bitcoin and other digital currencies. However, the latest news concerning any of them, may be missing. Therefore, it would be useful for investors to keep in touch with print media and social media, to especially know the latest news about Bitcoin.

El Salvador is Playing Host

President Bukele has taken to Twitter, to outline every single detail about the conference. For instance, there is a lengthy list of attendees. They consist of representatives from diverse Central banks and financial institutions. Then again, there are representatives from different finance ministries. Thus, Twitter seems to be full of the President’s outpourings.

There is a very strong reason for El Salvador taking up the role of ‘host’. It was the first nation in the world to grant great importance to Bitcoin. The authorities announced that Bitcoin would be considered as legal tender within El Salvador’s boundaries.

The official announcement was made in 2021. Earlier, in 2017, the U.S. Federal Reserve had rejected Bitcoin. The chairperson felt that it was a greatly speculative asset. Therefore, it could not be viewed as a stable source of income, or possessing value.

El Salvador is an Inspiration

El Salvador has the distinction of being the first country in the world, to grant Bitcoin an official status. Today, establishments in the country, may opt for Bitcoin as a mode of payment. Citizens of El Salvador are welcome to use BTC for any kind of transaction. It is also possible to pay taxes with Bitcoin.

El Salvador’s action prompted the Central African Republic (CAR) to adopt Bitcoin, too. The official announcement came through in April 2022. Surprisingly, CAR accepted Bitcoin much more easily, than El Salvador had ever done. El Salvador had taken 12 years to reach a decision about Bitcoin. The decision was viewed as a historical declaration, when it happened. However, CAR reached the same decision in the space of a single year! It is hoped that other nations come forward, soon, to adopt the rising star, Bitcoin!

The Journey of Bitcoin in El Salvador

The Government of El Salvador had to create a bill, for making Bitcoin a legal tender. It did so, on September 7, 2021, with full approval from the Parliament. A global announcement also came to the fore, at the Bitcoin 2021 conference in Miami.

Now, there is no denying that Bitcoin is susceptible to volatility in the global marketplaces. Therefore, labeling it as legal tender, could put the nation into difficulties. Top economists, the International Monetary Fund, etc., were aware of this fact. Furthermore, there were apprehensions that El Salvador would soon face issues with money laundering. There could even be an enhancement in illegal activities.

Some critics expressed concerns about Bitcoin lacking any kind of physical backing. They suggested that the government’s decision was highly underdeveloped and injudicious.

The rapid price fluctuations are also responsible for causing skepticism. During November 2021, Bitcoin’s price was approaching $69,000. By June 2022, it had encountered a downswing. Bitcoin’s price was at a low of $30,000. Even the market cap was dismal. It had been running at $3 trillion, earlier. Currently, it is a mere $1.25 trillion.

Reasons for Adopting Bitcoin as Legal Tender

According to President Bukele, this kind of a legal tender would help the underdeveloped nation to receive a financial uplift. Then again, the unbanked populaces would have access to financial services. Around 70% of El Salvadorians possessed no bank accounts.

A third reason was the improvement of the nation’s foreign economy. To illustrate, Bitcoin payments would enhance remittances from overseas. After all, transaction costs were affordable, even for transferring large amounts of Bitcoin. The President declared that El Salvador would be able to save $400 million via yearly remittance commissions.