Back in 2021, El Salvador took the first step into making Bitcoin legal tender. It defied the establishment by proving BTC can be used as an alternative to Fiat. Set ourselves forward 4 years later, and now El Salvador is regretting its decision. It made a deal with the IMF, in exchange of limiting its involvement with the world's beloved cryptocurrency. I guess all good things come to an end.
I wonder what could've been the culprit of Bitcoin's limited adoption within the country? Was it bad planning/execution? What if El Salvador rejected the IMF's demands? Would've it survived with Bitcoin as its sole currency? I mean, the government continues to buy BTC. At some point, it would've paid off its debt. That would've help turn it into a developed country in the long run.
What about other countries adopting BTC as legal tender? Is there still a possibility? Or is it "game over"?
Your input would be greatly appreciated. Thanks.
In fact, I think that El Salvador is facing a difficult reality because on the one hand, they are not that economically strong, and on the other hand, there are some complications with Bitcoin that could hinder their development. I wonder what could've been the culprit of Bitcoin's limited adoption within the country? Was it bad planning/execution? What if El Salvador rejected the IMF's demands? Would've it survived with Bitcoin as its sole currency? I mean, the government continues to buy BTC. At some point, it would've paid off its debt. That would've help turn it into a developed country in the long run.
What about other countries adopting BTC as legal tender? Is there still a possibility? Or is it "game over"?
Your input would be greatly appreciated. Thanks.
And lastly, another main point is that on top of that, I think the IMF is controlled by a whale group and it would never want Bitcoin to be in the reserves or hands of others, which would then be able to compete with their power later. Finally, in a word, El Salvador is facing a difficult reality. But I don't think this is the end, maybe in the future we will see other countries accepting Bitcoin as legal tender.