Posted by Xoken.org – CoinEx CEO Haipo Yang, said that El Salvador’s adoption of Bitcoin as legal tender since 2021 could be imitated by other countries.
El Salvador is a country in Latin America that has caused a stir in the world. At that time, in June 2021, President Nayib Bukele announced that Bitcoin (BTC) would become a legal tender (legal tender).
This bold step made El Salvador the first country to adopt crypto at the national level. This decision aims to increase financial inclusion and improve economic efficiency in the country, which also uses the US dollar as the official currency.
For Haipo Yang, El Salvador’s decision to adopt Bitcoin as a legal tender is a bold and innovative move that has the potential to revolutionize the country’s financial landscape.
“By embracing Bitcoin, El Salvador is not only opening up new opportunities for its citizens but also setting an example for other countries to follow,” he said in his official statement, Monday (13/5/2024).
He added that one of the main motivations behind El Salvador’s adoption of Bitcoin was to reduce the high costs associated with sending money. Before Bitcoin, many El Salvadorans relied on remittances from family members abroad, which often incurred large fees.
By using Bitcoin, specifically using Layer 2 and the Bitcoin blockchain, El Salvador hopes to provide a more cost-effective way for its citizens to receive money from abroad.
Additionally, Bitcoin’s decentralized nature appeals to El Salvador as a way to bypass the traditional banking system, which has left many El Salvadorans without access to basic financial services.
By using smartphones, El Salvadorans can now participate directly in financial activities, promoting financial inclusion and breaking the monopoly of traditional banks. Nevertheless, El Salvador’s adoption of Bitcoin did not come without challenges. The cryptocurrency’s price volatility has raised concerns about its use as a stable medium of exchange.
Additionally, the country’s decision to make Bitcoin a legal tender has faced criticism from several quarters, particularly from the IMF with concerns about its potential impact on the country’s monetary policy and economic stability.
Despite these challenges, El Salvador’s experiments with Bitcoin have attracted worldwide attention. Many countries and regions facing similar financial challenges are now examining El Salvador as a case study for the potential benefits of adopting cryptocurrencies.
“El Salvador’s adoption of Bitcoin has global significance. It has shown the world that crypto can be a powerful tool for promoting financial inclusion and economic growth. As more countries explore the potential of cryptocurrencies, platforms like CoinEx will play an important role in facilitating adoption and use this digital asset,” stressed Yang.