No but if they have 20% of GDP coming from abroad and the aim is to be using Bitcoin as easier then it could affect the weekly shop. even if just to transfer to Dollars.
The new law means every business must accept Bitcoin as legal tender for goods or services, unless it is unable to provide the technology needed to do the transaction.
Points around decoupling from a currency where there’s no control or influence make sense (to an extent), but to me, it’s utter madness, driven by a populist rather than an economist.
Two(ish) currency systems, extraordinarily high volatility, even when factoring the USD stability facility they propose, and a fragile country currently working through an IMF plan, which could now fall away. What could go wrong?!
Nice experiment for all the Bitcoin bros to opine on Twitter, Reddit & Co, not so nice experiment if you’re a Salvadoreño longing for the prospect of a more secure, stable future.
Not sure how it will help the average person in El Salvador, surely its better to send dollars home to family rather than Bitcoin as this guy seems to say.
True but they could have used a different coin like the article says The amount of corruption in El Salvador and criminality may not end up giving Bitcoin any good PR and actually get linked with crime etc.
Besides if you sent $100 from US back home you know what they can buy roughly but with Bitcoin you don’t know if it will be enough to pay rent/bills etc due to volatility.
But can the people getting money sent back from US afford to save? And as I said more importantly if a tweet is sent out they suddenly can’t afford the basics. Bitcoin seems a bit of a luxury item to own as the volatility means it needs to be spare cash.
Ah so did El Salvador not have their own currency at all? That makes a lot more sense that they would look for alternatives. Maybe a few others like that will follow, countries who rely on currencies out of their control.