The World Bank will not help El Salvador adopt Bitcoin


El Salvador flag on Bitcoin. El Salvador was the first country to adopt Bitcoin as the concept of legal tender.

Bitcoin dropped another 2.73% Dow fell 210 points 0.6%. Although the latter is due to Fed’s latest monetary policy decision And forecast. (I will give you a tip: higher interest rates). The former is due to the huge development of the world through the transfer of cryptocurrencies to decentralized finance.

The World Bank will not help El Salvador adopt Bitcoin as its national currency

After the Salvadoran government signed a law on May 5, 2021, proposing the country to use Bitcoin as legal tender, Salvadoran President Nayib Bukele hoped that the World Bank would respond better. According to the new law, companies in El Salvador must accept Bitcoin as a payment method. In addition, the government will allow taxpayers, you guessed it, to pay taxes in Bitcoin. 62 of the 84 members voted for the proposed law, and most parts of the country are already ahead.

In a country where 70% of the population does not have a bank account, this is quite surprising.

Or is it?

You can also take a look: The great Bitcoin mining migration

A quarter of El Salvador’s GDP comes from remittances

USD 6 billion money transfer Enter the Salvadoran economy in 2020. This is equivalent to benefiting 360,000 households in one of the most “unbanked” countries on the planet.In addition, the country has some Lowest Internet penetration rate in Latin America. In rural areas, about 10% of people have access to the Internet.

An example is only about 30 miles from San Salvador, the capital of El Salvador. Many places in the beach town of El Zonte may not have suitable concrete roads or even effective drainage systems, but does it have one thing? Bitcoin.

After the announcement, this month has seen an influx of crypto entrepreneurs and companies to help El Salvador get to work, picking up the label that the World Bank has unceremoniously abandoned. Nonetheless, there is no hope of losing hope for El Salvador to make Bitcoin a legal tender. (Also, they may not be the only Countries adopting Bitcoin The next few years. )

Image courtesy of Reuters

Although for whale wallets, cryptocurrency entrepreneurs, and developed countries with multiple screens, all this is sunshine and roses, but people like Zulma Rivas, the 38-year-old mother of three children People said that she started accepting bitcoin payments last year to buy cut fruits as part of an experiment, she sold goods to tourists El Zonte’Bitcoin Beach’. Her problem? Her old smartphone could barely run payment applications, and when the reporter who reported on her came back to check her, her phone broke.

El Salvador has a long way to go in making Bitcoin a legal tender

Although this may be on paper, this developing country still has a long way to go. Considering that most of the country still has no bank accounts (about 70% of the country does not have a bank account), wire transfers are still king—especially when a quarter of Salvador’s GDP comes from overseas remittances. Companies like Western Union (NYSE:WU) may be able to show what the traditional financial world thinks is about to happen through their actions.

For now, when it comes to Bitcoin and the cryptocurrency world, El Salvador’s use of Bitcoin as legal tender is just a positive factor, even if these powers may frown.

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