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17-06-2022, 10:33 AM
(26-01-2022, 11:33 AM)weijian Wrote:(19-06-2021, 10:34 AM)weijian Wrote: Well, most VBs are skeptical of bitcoin (me included). But I am all for experimentation as that means progress.
We all know the downsides of using bitcoin as a medium of exchange, from theory. In practice, it looks like it is working (at least in a bull market since mid 2019) on a small scale basis. Would be very interesting to observe how it works on a country wide scale (El Salvador is as big as Singapore in terms of population)
There is definitely a case for El Salvador to go digital as most El Salvadorans work in the United States and their remittance costs are astronomically high (as high as mid teens). But I am not sure that bitcoin is the solution. For this experiment, we will know whether it works down the road in another 6-12 months' time (earlier than my original expectations)
IMF urges El Salvador to remove Bitcoin as legal tender
The directors "urged the authorities to narrow the scope of the Bitcoin law by removing Bitcoin's legal tender status," according to a statement from the International Monetary Fund. The officials "stressed that there are large risks associated with the use of Bitcoin on financial stability, financial integrity, and consumer protection" and with issuing Bitcoin-backed bonds.
https://www.businesstimes.com.sg/governm...gal-tender
Judging at this denial, it probably isn't working, and everything will unravel soon. I believe most El Salvadorians are sane enough to ignore their Gov, continue to work in US, and keep their wealth in USD.
What will the crypto crash mean for 'bitcoin nation' El Salvador?
El Salvador’s minister of finance Alejandro Zelaya told a press conference on 13 June that the risk of the bitcoin fund was “extremely minimal” and that the country hasn’t lost anything as it hasn’t yet sold its holdings.
https://www.newscientist.com/article/232...-salvador/