El Salvador has recently passed legislation and has become the first country in the world to officially make BTC a legal tender. This new law means that every business must accept BTC for trading goods and services. The law will come into effect in 90 days.
A preeminent crypto whale reports El Salvador will be the earliest nation that will fall towards the trend towards global bitcoin adoption. A crypto whale is an individual who holds large amounts of cryptocurrency coins. Due to this, they become powerful enough to manipulate the valuation of that particular cryptocurrency. In a recent live session by Hxro Labs called Delta-Fi, Crypto Messiah articulates that El Salvador is unlikely to be the sole nation to accept bitcoin.
“It’s just a domino,” he says, comparing all the countries to a set of dominos that will make one by one fall towards the global adoption of cryptocurrency. He further explains that several other countries seek to decrease their dependence on the American dollar. They are looking for a currency that cannot be manipulated or controlled.
The El Salvador president had a meeting with the International Monetary Fund (IMF) to discuss the country’s new bitcoin law. The crypto expert thinks that the IMF will not be too happy to hear about this; however, he says it is still a very significant event to happen and that other disenfranchised nations are also jumping on the bandwagon.
Although Crypto Messiah is quite optimistic about El Salvador’s BTC adoption, he speculates that the current authorities may have opposing views. Many of the disenfranchised countries are reliant on the dollar, so introducing a competing currency to that may have some undesirable consequences.
“Will our current power structures really let this happen?” he wonders. It is not certain whether the world banks and the IMF will accept that these nations are flourishing and becoming independent or if they will interfere.
Soon after El Salvador acquired the bitcoin, Gerry Rice, an IMF spokesman, said that they did have some concerns about the country’s bitcoin policy, and they were indeed keeping an eye on it. He says that the legalization of BTC as a currency raises numerous issues with regards to the legal and financial terms which need to be carefully analyzed.