There is a lot of debate on cryptocurrency like bitcoin at the moment. This is because cryptocurrency is unregulated by governments, which was kind of the point in the first place, but it is also the reason why it isn’t quite mainstream yet compared to regular fiat currency. While there are some places that do accept bitcoin as payment, it is few and far between.
However, over in El Salvador, the country could potentially be the first country in the world that would accept bitcoin as legal tender. For those unfamiliar with the term, legal tender basically means that this is a form of money that are recognized by the courts of law as a form of satisfactory payment.
The country’s government is looking to introduce a legislation that would result in bitcoin being considered as legal tender, and are working with Strike, a digital wallet company, to help build an infrastructure for the country using bitcoin technology. The idea is that by using bitcoin, it would help better protect the country against shock inflation.
While we suppose that makes sense, but it is also a huge gamble. This is due to the fact that most cryptocurrencies aren’t tied to a stable resource like gold or are backed by a country’s government. It has also been known to be volatile in terms of its perceived value and experiences huge spikes and drops throughout the day.
However, it is an interesting proposal nonetheless and if El Salvador’s implementation is successful, it could act as a blueprint for other countries who might want to do the same.