The official currency of El Salvador is updated! | Author: Dwayne D’cunha | The Capital | June 2021
Using any currency, let alone Bitcoin, is quite challenging for a small country like El Salvador, which is why the World Bank is asked for assistance. However, El Salvador bravely decided to become the first country to recognize Bitcoin as a valid currency and use it to pay any type of debt, without the support of the World Bank. The reason behind this is concerns about sustainable energy use and Bitcoin’s avoidance of regulation due to its decentralized nature. This is nothing new for those who have been listening to politicians and major institutions chatter on the same point without citing appropriate data to support their claims. The agency is not interested in making new changes that are beneficial to the economy, but continues to enforce the same rules.
Nonetheless, this has not hindered the enthusiasm of Bitcoin enthusiasts to help in any possible way. The founder of Strike, Jack Mallers, is a payment application based on the Lightning Network. Since March, it has supported El Salvador’s bold decision to help this new business go smoothly. The strike is a blessing to people in every corner of the country, enabling them to pay effectively. Financial inclusion is a problem that most developing countries must face, and Strike has always been a staunch supporter of it. This has prompted rural people to participate in the use of Bitcoin for daily use.
There are legitimate concerns about El Salvador’s financial situation and the amount of debt that it has. If everything goes downhill, this will eventually have dire consequences for the country. The migration of Bitcoin miners has created a lot of doubts about its potential in people’s minds, which has affected people’s confidence in the currency’s help to plummet the economy. The risks it takes can also help solve existing problems or create new ones, and we can only wait and see.