El Salvador adopts Bitcoin (Bitcoin) Because fiat currencies are widely celebrated throughout the crypto ecosystem, but one expert believes that the importance of the launch is a bit exaggerated.
Fidelity Investment Director Jurrien Timmer said in an interview with CNBC Said The importance of the Bitcoin initiative in El Salvador is “a bit exaggerated.”
“Because it’s not like El Salvador has given up the dollar as its peg,” Timmer explained. “This is not to say that it switched from the U.S. dollar to Bitcoin as its currency peg.”
Remind that the country still has U.S. dollars, people can decide to pay in U.S. dollars or pay in U.S. dollars, he added that the adoption is on a voluntary basis.However, although payment in Bitcoin is voluntary in El Salvador, it is mandatory for local merchants in the country Accept and process BTC transactions.
Timer pointed out that Bitcoin was tested for the first time as a medium of exchange rather than a store of value. He listed its scarcity and strong network as the core value of Bitcoin, and emphasized that proof of work makes Bitcoin less scalable than other cryptocurrencies (such as Ethereum).Ethereum).
related: September 7th is “Bitcoin Day” in El Salvador, because BTC became legal tender
Fidelity executives compared the current moment of Bitcoin with “teen adulthood” such as gold in the 1960s:
“Although it’s the other way around; because gold changed from currency to asset class in the 1970s. Bitcoin is trying to change from asset class to currency or currency.”
As Cointelegraph reported, El Salvador made history by making Bitcoin a legal tender on September 7. The government also provided a country-issued wallet called Chivo.