Quote from: DapanasFruit on April 28, 2022, 09:44:52 AM

Just like maybe most of us here, I did celebrate when it was announced that El Salvador is going to recognized Bitcoin not just another form of money but as its legal tender...wow that news send good amount of positive vibes all over the crypto world. I was then expecting that people would love to taste the freedom they can enjoy with Bitcoin and that a critical number of people would be using Bitcoin everyday even as to buy a toothpaste or a soda in a nearby convenience store. So what happened then with that assumptions? Is there now a big failure after 7 months of opening the gates for Bitcoin in this small country...or have we looked at things in a very myopic way of view? Hate to say that whatever outcomes in El Salvador would have a far-reaching repercussions in the general adoption of Bitcoin especially with many countries who can be modeling their decisions here in El Salvador. Anyway, we can all magnify what happened or we can just shrug them off as non-important to Bitcoin.

Bitcoin adoption has failed to take off within the nation of El Salvador because its regulatory framework is largely unfavorable towards cryptocurrencies. At this time, there are no regulations in place that recognize cryptocurrency as legal tender or deal with taxation and licensing of businesses related to Bitcoin. In addition, due to the lack of protection through financial regulators like the Central Bank or Securities Commission, El Salvadors citizens are reluctant to invest in digital currencies which present many risks including fraud and volatility.

Furthermore, recent political events that have taken place in El Salvador has made it harder for people living there to access banking outside of the country and make international payments. Bitcoin holders rely on exchanges like those located inside El Salvador for trading but without a proper framework in place transactions done through local marketplaces pose significant security risks. Finally, since most crypto transactions occur online it can be difficult for users from El Salvador who may not have reliable internet access or devices capable of securely recording and storing their details regarding transactions.

Until such time as measures designed to regulate cryptocurrency usage within the country become law Bitcoin adoption will remain limited within El salvadors borders despite its potential advantages over traditional financial systems present worldwide currently.

eddie.gouws

Posts

Merits