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Bitcoin will soon be an official currency in El Salvador

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Bitcoin will soon be an official currency in El Salvador
It’s the first country to make the cryptocurrency legal tender

By Mitchell Clark Jun 9, 2021, 7:21pm EDT

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El Salvador has passed a resolution to make Bitcoin a legal currency, which makes it the first country to do so (via The Guardian). According to the law, citizens will be able to use Bitcoin to do everything from paying taxes and paying off debts to buying goods and services. The move was championed by President Nayib Bukele, who says it’s a way to help those who don’t have access to banks, and those who want to send money back to the country from abroad, but critics worry that it’ll be more show than substantive change.

The proposal was passed by El Salvador’s congress on Tuesday night, after Bukele announced it at a Bitcoin conference in Miami last week. It wasn’t a close call, with 62 out of 84 legislators voting for it, but it’s worth noting that Bukele has large amounts of political power in the country — his party makes up a majority of the congress, which allowed him to take control over much of the government earlier this year.

While Bitcoin will become an official currency for El Salvador in just under three months, it won’t be the only currency — the US dollar, which was previously the country’s only currency, will be sticking around as an option, though according to Cryptonews Bukele said that he wanted the country’s citizens to think about money in terms of Bitcoin, not dollars. The resolution states that citizens should be able to convert between the two currencies at any time, and that US dollars “will be used as the reference currency” for accounting.

According to The Guardian, some human rights groups focused on Central America have doubts about Bitcoin’s adoption leading to meaningful change for many of the country’s citizens. One concern is that the nation’s lower class won’t have access to the tech required to use and store Bitcoin. While the law requires anyone offering goods or services to accept Bitcoin, it does have an exception for those who don’t have access to the technology. The law does say that the government will “promote the necessary training and mechanisms” to allow the population to use Bitcoin.


The country currently isn’t a large hub for mining Bitcoin — according to University of Cambridge estimates, it’s not in the top 10 mining countries. In fact, according to the university’s map, El Salvador’s contributions make up 0.00 percent of the global computing power that’s put towards Bitcoin. Bukele, though, could be looking to change that — he’s tweeted that the state-owned electric company has been instructed to provide cheap electricity for mining, powered by volcanoes (no, that’s not a joke).

I’ve just instructed the president of @LaGeoSV (our state-owned geothermal electric company), to put up a plan to offer facilities for #Bitcoin mining with very cheap, 100% clean, 100% renewable, 0 emissions energy from our volcanos


Bitcoin will soon be an official currency in El Salvador - The Verge

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VCheng

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El Salvador has passed a resolution to make Bitcoin a legal currency, which makes it the first country to do so (via The Guardian).

Lots of my family and friends are big into bitcoin, but I have only a small holding at the moment. I am not sure what to make of it, TBH. Any major central bank blessing it would be a step in making this more mainstream, but not otherwise, IMO.
 

_NOBODY_

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Lots of my family and friends are big into bitcoin, but I have only a small holding at the moment. I am not sure what to make of it, TBH. Any major central bank blessing it would be a step in making this more mainstream, but not otherwise, IMO.
Technically speaking Bitcoin seems overrated to me as compared to the likes of Ethereum when you consider the applications of Ethereum. I suggest you to read the article below.
 

Indos

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Bitcoin will soon be an official currency in El Salvador
It’s the first country to make the cryptocurrency legal tender

By Mitchell Clark Jun 9, 2021, 7:21pm EDT

View attachment 752830

El Salvador has passed a resolution to make Bitcoin a legal currency, which makes it the first country to do so (via The Guardian). According to the law, citizens will be able to use Bitcoin to do everything from paying taxes and paying off debts to buying goods and services. The move was championed by President Nayib Bukele, who says it’s a way to help those who don’t have access to banks, and those who want to send money back to the country from abroad, but critics worry that it’ll be more show than substantive change.

The proposal was passed by El Salvador’s congress on Tuesday night, after Bukele announced it at a Bitcoin conference in Miami last week. It wasn’t a close call, with 62 out of 84 legislators voting for it, but it’s worth noting that Bukele has large amounts of political power in the country — his party makes up a majority of the congress, which allowed him to take control over much of the government earlier this year.

While Bitcoin will become an official currency for El Salvador in just under three months, it won’t be the only currency — the US dollar, which was previously the country’s only currency, will be sticking around as an option, though according to Cryptonews Bukele said that he wanted the country’s citizens to think about money in terms of Bitcoin, not dollars. The resolution states that citizens should be able to convert between the two currencies at any time, and that US dollars “will be used as the reference currency” for accounting.

According to The Guardian, some human rights groups focused on Central America have doubts about Bitcoin’s adoption leading to meaningful change for many of the country’s citizens. One concern is that the nation’s lower class won’t have access to the tech required to use and store Bitcoin. While the law requires anyone offering goods or services to accept Bitcoin, it does have an exception for those who don’t have access to the technology. The law does say that the government will “promote the necessary training and mechanisms” to allow the population to use Bitcoin.


The country currently isn’t a large hub for mining Bitcoin — according to University of Cambridge estimates, it’s not in the top 10 mining countries. In fact, according to the university’s map, El Salvador’s contributions make up 0.00 percent of the global computing power that’s put towards Bitcoin. Bukele, though, could be looking to change that — he’s tweeted that the state-owned electric company has been instructed to provide cheap electricity for mining, powered by volcanoes (no, that’s not a joke).

I’ve just instructed the president of @LaGeoSV (our state-owned geothermal electric company), to put up a plan to offer facilities for #Bitcoin mining with very cheap, 100% clean, 100% renewable, 0 emissions energy from our volcanos


Bitcoin will soon be an official currency in El Salvador - The Verge

@ghazi52 @araz @The Eagle @The Accountant @That Guy @Irfan Baloch @PanzerKiel @AgNoStiC MuSliM @Imran Khan @PAKISTANFOREVER @waz @Windjammer @WinterFangs @KaiserX @niaz @farok84 @AZADPAKISTAN2009 @MastanKhan @krash @FOOLS_NIGHTMARE @Bilal Khan (Quwa) @Cookie Monster @Bratva @VCheng @Foxtrot Alpha @Rafael @Rafi @Trango Towers @TNT @Indus Pakistan @Falcon26 @Norwegian @LeGenD @Zarvan @Iltutmish @notorious_eagle @Akh1112 @mingle @Dazzler @AZADPAKISTAN2009 @Tipu7 @Hodor @Horus @Ark_Angel @SQ8 @krash @Mangus Ortus Novem @DESERT FIGHTER @Goenitz @jaibi @Areesh @Zibago @ziaulislam @Aamir Hussain @GriffinsRule @PakFactor @RadarGudumluMuhimmat @UKBengali @Avicenna @SpaceMan18 @KAL-EL @IblinI @TruthSeeker @Beast @vi-va @F-22Raptor @denel @Indos @Abu Dhabi @Philip the Arab @The Raven @The SC @LKJ86 @Joe Shearer @rambro
Look weird a nation use this thing as currency. Indonesia Central Bank is instead planning to make a digital currency.....This is what I think a better policy to make
 

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Look weird a nation use this thing as currency. Indonesia Central Bank is instead planning to make a digital currency.....This is what I think a better policy to make
Can any existing currency be converted into a digital currency or does one have to create an entirely new digital currency?
 

Indos

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Indonesia digital currency will be back by Indonesia government while Bitcoin is more like private sector endeavour without any government backing

Can any existing currency be converted into a digital currency or does one have to create an entirely new digital currency?
Yup, current currency, Rupiah, is planned to have its own digital version




Indonesia announces plans for central bank digital currency


Business 29 May 2021

Ed Drake




The Bank of Indonesia has announced plans to issue a central bank digital currency (CBDC), becoming the latest global central bank to indicate a move towards a state-backed digital currency.

The bank’s governor, Perry Warjiyo, recently announced the plans to launch a digital rupiah, amid surging uptake of digital payment solutions in the country.

Noting the rupiah remains the only legal currency in Indonesia, the governor said the bank would regulate the proposed digital rupiah in the same way, across both card and cash transactions.

The bank has now turned its focus to studying the benefits of a digital currency, as well as the knock-on effect on payment systems and the wider monetary system, while addressing issues around the readiness of the financial infrastructure currently in place.

The Bank of Indonesia has yet to release a formal statement confirming its plans, but has noted that preparations are underway for the eventual release of a digital rupiah: “BI is currently still focusing on digital transformation as part of Indonesia payment systems blueprint 2025.”

Digital banking transactions in Indonesia have leapt by over 60% year-on-year, with the digital currency being issued against a backdrop of growing interest in digital currencies.

The news comes after last week’s announcement from the Indonesian financial regulator that plans were underway to tax capital gains from digital currency, alongside plans for a digital currency transaction tax put forward by the Commodity Futures Trade Regulatory Agency.

The move comes at a time of increasing efforts towards launching central bank digital currencies from central banks around the world, most notably in China where plans are already at an advanced stage of testing.

Digital currency in Indonesia was outlawed as a form of payment in 2017, despite digital currency trading remaining legal in the country, underlining the government’s mixed approach to regulating the sector.

 

jamahir

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I never understood how this Bitcoin / BitCon is different from other capitalist currencies like the Australian Dollar or the British Pound or the Euro or other such.
 

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I never understood how this Bitcoin / BitCon is different from other capitalist currencies like the Australian Dollar or the British Pound or the Euro or other such.
The main difference of Bitcoin from traditional currencies lies in the fact that no one controls Bitcoin as it is decentralized. It allows Bitcoin to be an independent peer-to-peer money system that can function regardless of anyone's wishes. It relies on the combined computing power of the network participants, each of which is equal among themselves — nobody is more or less important than the others. Additionally, it helps bring down the cost of using the system by ideally eliminating fees and transaction times, both of which banks need to stay in business. No one can have an influence over your money and transactions you send or receive.

In contrast, fiat currencies rely on centralized entities like central banks, commercial banks, governments, payment processors like VISA or Mastercard, and other intermediaries. Any of those organizations have an authority to decide whether to approve your transaction, whether you can send money to certain people or organizations, or if the money you’re using is legal or not. These processes also include in-depth surveillance and data-sharing on everything you do with your money.

Other significant difference is that unlike fiat, Bitcoin is not sovereign. There is nothing backing Bitcoin, which means it’s value is not attached to any political or economic situation, and it can exist independently outside of the traditional system.

Last but not least, Bitcoin introduces a new dimension of programmability. It means that in the future, Bitcoin transactions can be attached to smart contracts or other programs that execute only after certain conditions are met. Such a feature would allow building additional solutions on top of bitcoin, such as reputation management systems, insurance contracts, or similar. Such contracts would not require any third-party intervention to execute. Essentially, it introduces a new dimension to the concept of traditional cash.
 

jamahir

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The main difference of Bitcoin from traditional currencies lies in the fact that no one controls Bitcoin as it is decentralized. It allows Bitcoin to be an independent peer-to-peer money system that can function regardless of anyone's wishes. It relies on the combined computing power of the network participants, each of which is equal among themselves — nobody is more or less important than the others. Additionally, it helps bring down the cost of using the system by ideally eliminating fees and transaction times, both of which banks need to stay in business. No one can have an influence over your money and transactions you send or receive.

In contrast, fiat currencies rely on centralized entities like central banks, commercial banks, governments, payment processors like VISA or Mastercard, and other intermediaries. Any of those organizations have an authority to decide whether to approve your transaction, whether you can send money to certain people or organizations, or if the money you’re using is legal or not. These processes also include in-depth surveillance and data-sharing on everything you do with your money.

Other significant difference is that unlike fiat, Bitcoin is not sovereign. There is nothing backing Bitcoin, which means it’s value is not attached to any political or economic situation, and it can exist independently outside of the traditional system.

Last but not least, Bitcoin introduces a new dimension of programmability. It means that in the future, Bitcoin transactions can be attached to smart contracts or other programs that execute only after certain conditions are met. Such a feature would allow building additional solutions on top of bitcoin, such as reputation management systems, insurance contracts, or similar. Such contracts would not require any third-party intervention to execute. Essentially, it introduces a new dimension to the concept of traditional cash.
1. I glanced through your reply. Can you please compare your understanding of Bitcoin with my proposal for a new economic system as written in this thread ?

2. You mention "Reputation Management System". I have mentioned that in above mentioned thread as "Social Credits".
 

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1. I glanced through your reply. Can you please compare your understanding of Bitcoin with my proposal for a new economic system as written in this thread ?

2. You mention "Reputation Management System". I have mentioned that in above mentioned thread as "Social Credits".
What I meant by Reputation Management System was a system that records who many smart contracts a person has fulfilled out the number of smart contracts he/she engaged in. Such system will be determining a person's dedication and sense of responsibility.
 

jamahir

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What I meant by Reputation Management System was a system that records who many smart contracts a person has fulfilled out the number of smart contracts he/she engaged in. Such system will be determining a person's dedication and sense of responsibility.
I get the sense of "Smart Contracts" but can you tell me a couple of such types ?
 

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