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When Bitcoin becomes legal tender

Leestijd: 4 min.

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As everyone knows by now, El Salvador has accepted Bitcoin as legal tender. They are also working on many projects related to Bitcoin. For example, they will be mining bitcoins near volcanoes so that they can use the energy of those volcanoes. This is ideal because the whole mining business is very energy-consuming. They also have plans to set up a real Bitcoincity. This will initially be financed by Bitcoin bonds, to the tune of $1 billion. The city itself will also harness the energy of the volcanoes. It doesn't get much greener than this. Meanwhile, El Salvador has already become a place of pilgrimage for Bitcoin millionaires. One thing is certain, the president of El Salvador is thus ensuring that the poverty-stricken country that uses dollars is undergoing unprecedented growth that will make them financially independent. We can only applaud this. The IMF in turn is pushing to reverse the whole process and start dumping BItcoin. They claim that because of the crypto they are going down a dangerous path that could well be the downfall of the country. Absurd of course, we are lucky that the president Nayib Bukele is standing firm and buying up the dip in time.

Central African Republic

Of course because of all this Bitcoin story in El Salvador, they are naturally attracting the attention of other poorer countries who want to take an example from the South American country. So recently a second country decided to follow suit. Yep, Bitcoin will become the national currency of the Central African Republic. The parliament agreed to a plan for economic recovery and Bitcoin is part of it. In addition to BTC, the national currency is CFA francs, also used in other African countries and backed by France. It is a small country of almost 5 million people that has been suffering from a series of civil wars. It is also the smallest economy in the world. So this country is now effectively the second in the world to accept Bitcoin as legal tender. But it doesn't stop here, good news has also come out of the middle american country of Panama.


Congressman Gabriel Silva wants to make Panama the center of innovation and technology of Latin America. The only thing missing now is the approval of the president himself. It is also Bitcoin only not but the entire cryptospace that is being regularized. This also ensures that almost no taxes have to be paid on the capital gains made on crypto and apparently the taxes themselves could be paid with crypto.


So you see, it's a domino effect and will only continue to expand. Of course, the people themselves must also be willing to participate in this story, but if you look at the percentages in El Salvador, you can see that already 20% are using the Bitcoin wallet that the government has launched. Of course, for the moment it is all the poorer countries that are taking this leap, because it also frees them from the oppression of Western countries. There can't be as much tampering because everything is transparent.

The flaws of our system

The trend has been set, but the question is when will the Western countries also risk it. Especially now that it is becoming painfully clear how our monetary system works and everyone is confronted with the decline in purchasing power. In Europe they are already talking about more than 8% inflation. The only thing they can do here is to raise the interest rates but that will also have a negative effect on the stock markets. Our governments have their backs to the wall and don't know what to do to stabilize everything, to contain inflation without having too many negative effects on companies. There are currently two possibilities, either they tackle inflation by raising interest rates but then growth may slow down, or they choose for the companies and leave interest rates for what they are. In America they are currently opting for the first option and in Europe they would only take this decision in the next quarter. One thing is certain, it cannot go on like this because life is becoming unaffordable and more and more people are being pushed into poverty.


The best option that was not mentioned is to switch to a decentralized, democratic system such as Bitcoin. But of course this will not happen without a struggle. What the future will bring we do not know but try to anticipate it anyway and invest in silver, gold and crypto. Then you can face your future in a safe way in which you preserve your purchasing power.

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