Bitcoin in El Salvador. To be continued …
After enthusiastic articles about the history of Salvador-Bitcoin, a harsh reality has come. In life, however, it happens. First, the candy-flower period, and then… How will it go 😉
At first, the World Bank rejected the request of the government of the Central American state for help with the introduction of bitcoin. Representatives of the Bank stated that they could not help El Salvador in any way, and stressed that such a project was unrealizable due to the opacity and shortcomings in terms of the environmental friendliness of bitcoin. Let’s face it, asking the World Bank for help on this issue was a rather strange idea.
Then the topic of dirty money, which can be pumped to El Salvador after the adoption of bitcoin, was developed. The authorities of El Salvador have not yet explained how they will track suspicious transactions. On the other hand, what did you want? Where is El Salvador, and where are the modern AML and compliance rules? Analysts warn that the new scheme could jeopardize El Salvador’s negotiations with the IMF on a $1 billion loan.
Attention is also drawn to the fact that the new law on bitcoin came into force at lightning speed, and information about the regulation of this industry has not appeared.
The new law, for example, actually proposes to distribute a residence permit to those who spend at least three bitcoins in El Salvador. The opposition within the state claims that this is just a PR move designed to distract attention from the recent mass dismissal of critical judges, or a hidden way to print money without the knowledge of the US Federal Reserve.
Since the currency of El Salvador is the US dollar, then printing the dollar is really somehow… Enumeration. But with the cue balls everything is trickier.
The guys will not be able to mine en masse – it is simply impossible
But to encourage the cue ball to swim more actively to the Salvadoran shores – why not?
Despite the alarming news, El Salvador is gaining momentum in the cryptocurrency market. According to the estimates of the cryptocurrency payments tracking company Chainalysis, the share of El Salvador in bitcoin payments of less than $1,000 coming to Central America increased from 1.9% in February to 4.7% in May.
How is it in the old joke about the monkey?
– I may be a fool, but I have my 50 dollars a day.
We continue to monitor the situation. For me, the main question is: what will be faster – regulatory and regulatory organizations will get to the cheeky Salvadorans, or a couple more countries a la Honduras or Paraguay with the Ivory Coast will follow the path of El Salvador and declare the cue ball their second settlement instrument.