El Salvador adopts Bitcoin as official currency, first country to do so
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Re: El Salvador adopts Bitcoin as official currency, first country to do so
#2I wonder if this will prompt the USA to import more products from El Salvador to reduce the size of the remittances sector and thereby lessen the reason people use Bitcoin in the first place.
Before anyone tells the Salvadorians to export more products... they do... and they do it by working in a country that exports to El Salvador.
Re: El Salvador adopts Bitcoin as official currency, first country to do so
#3I wonder if this will prompt the USA to import more products from El Salvador to reduce the size of the remittances sector and thereby lessen the reason people use Bitcoin in the first place. Before anyone tells the Salvadorians to export more products... they do... and they do it by working in a country that exports to El Salvador.
> prompt the USA to import more products from El Salvador to reduce the size of the remittances sector and thereby lessen the reason people use Bitcoin
Who in America would benefit from fighting this? Crypto is a real industry. It’s more profitable for the financial sector than similar activity in U.S. dollars. And the Fed doesn’t thoroughly love that it has to take international factors into account when its political mandate is purely domestic.
There is the interventionist foreign policy elite, but they aren’t on strong footing right now. The claim that the U.S. is hellbent on preserving the primacy of the U.S. dollar is largely a myth.
Re: El Salvador adopts Bitcoin as official currency, first country to do so
#4I wonder if this will prompt the USA to import more products from El Salvador to reduce the size of the remittances sector and thereby lessen the reason people use Bitcoin in the first place. Before anyone tells the Salvadorians to export more products... they do... and they do it by working in a country that exports to El Salvador.
I dont think governments work that way
Re: El Salvador adopts Bitcoin as official currency, first country to do so
#5I wonder if this will prompt the USA to import more products from El Salvador to reduce the size of the remittances sector and thereby lessen the reason people use Bitcoin in the first place. Before anyone tells the Salvadorians to export more products... they do... and they do it by working in a country that exports to El Salvador.
Traditionally, when people in the US want to reduce remittances, they just campaign to expel the immigrants making the remittances.
Re: El Salvador adopts Bitcoin as official currency, first country to do so
#6As a country where remittances make up roughly 20% of the GDP, and with remittance fees as high as 20% or more, this could boost GDP by 4-5%. Not surprising to see them be the first to do this. Others will likely follow.
Re: El Salvador adopts Bitcoin as official currency, first country to do so
#7Found this interesting deck[1] on El Salvador's digital climate while looking for smart phone adoption statistics. It would appear that there are more than enough smart devices to allow for such a transition successfully. Already on Twitter we're seeing crypto-punks there using Bitcoin to pay for their McDonalds, paying something like 0.000002 Bitcoin. I can't help but wonder what the outcome +1 year / + 5 years will be.
[1] https://datareportal.com/reports/digital-2021-el-salvador
Re: El Salvador adopts Bitcoin as official currency, first country to do so
#8Best part is the President trolling the IMF on Twitter: https://twitter.com/nayibbukele/status/1435263064933285898
Re: El Salvador adopts Bitcoin as official currency, first country to do so
#9I wonder if this will prompt the USA to import more products from El Salvador to reduce the size of the remittances sector and thereby lessen the reason people use Bitcoin in the first place. Before anyone tells the Salvadorians to export more products... they do... and they do it by working in a country that exports to El Salvador.
> prompt the USA to import more products from El Salvador to reduce the size of the remittances sector and thereby lessen the reason people use Bitcoin Who in America would benefit from fighting this? Crypto is a real industry. It’s more profitable for the financial sector than similar activity in U.S. dollars. And the Fed doesn’t thoroughly love that it has to take international factors into account when its politic…
> Crypto is a real industry.
Not really. An industry produces goods and services. What does crypto produce?
Re: El Salvador adopts Bitcoin as official currency, first country to do so
#10I read the whitepaper around early 2011 if my memory serves right. I remember finding it rather intriguing but also quite far-fetched for the lack of a better word. A whacky thought experiment on how to reimagine money only just after the GFC. Now 10 years later that whacky thought experiment is an official tender of a country. We truly live in interesting times :)