Bitcoin will be the official currency of El Salvador

While in Poland economists are wondering if cryptocurrencies have a future and will not disappear in other parts of the world Bitcoin it goes under the thatch. And it is literally. Salvadoran authorities have just decided that BTC cryptocurrency will be the official tender in their country.

Cryptocurrencies have not had a good press in Poland recently. Not only because of the several-week price drops that have been going on since May. Also due to the fact that a lot of scammers appeared, who added cryptocurrency scams to their wide offer "on the granddaughter", "on the policeman" and "counterfeit bills". They promise gold mountains to people who have no idea about cryptocurrencies, interchangeably using various terms: Forex, cryptocurrencies or currency pairs. For many people it does not really matter, the most important thing is that you can earn great money without effort.

Of course, you end up at a loss, which translates into flashy headlines "Cheated on cryptocurrencies"although these people might as well be sold counterfeit gold. The fact is, however, that Bitcoin is a serious concern - as is anything we do not fully understand. Politicians also add their pennies, warning against new technology, like Copernicus saying that the Earth is not the center of the universe.

Cryptocurrency? Better than dollars

However, this is not the case everywhere. Even in countries we consider exotic, the approach to cryptocurrencies may surprise you. The last example is El Salvador, which wants to become the first country in the world where Bitcoin will not only be widespread, but will be recognized as an official tender on a par with the US dollar (El Salvador has no currency of its own, it uses USD).

President of El Salvador Nayib Bukele he just announced it at a conference "Bitcoin 2021", which took place in Miami and is considered one of the biggest blockchain events this year.

The highlight of the agenda was a videoconference where El Salvador's President Nayib Bukele announced a partnership with Strike, a digital wallet company. It is she who is to prepare the entire financial infrastructure based on Bitcoin Codethat will allow BTC to become official currency in El Salvador.

- Next week, I will present a law to congress that will make Bitcoin a full legal tender. Bitcoin's capitalization is $ 680 billion. If 1% of this amount were invested in El Salvador, it would increase our GDP by 25%. On the other hand, Bitcoin would have 10 million potential new users and the chance to handle payments of up to $ 6 billion per year - tweeted the president of El Salvador Nayib Bukele.

Bitcoin will replace Western Union and cash

Interestingly, El Salvador's finances are not very digitized today. According to cnbc.com, as many as 70% of the country's population does not even have a bank account or credit card. A lot of money from economic emigration (mainly from the USA) also flows into the country. The Salvadorans, however, send them through intermediaries, mainly Western Union, which seems obsolete. 

All this is to replace Bitcoin, which is primarily cheaper than intermediaries charging up to 10% commission for international funds transfers. This will help both individuals and companies developing in El Salvador, which will be supported by the newly appointed team of Bitcoin leaders. 

- It was inevitable. We finally have the first country on the way to making Bitcoin legal tender - Adam Back, Blockstream CEO, told cnbc.com. "We are pleased to be able to help El Salvador on its path to adopting this payment standard," he adds.