How can we not talk about the front page news of all the newspapers?
El Salvador has made Bitcoin legal tender.
Obviously, it has not supplanted the Dollar, but has flanked it. By all means, even if it has "only" flanked it it is still a decision that will go down in history.
Purpose
The purpose of Nayib Bukele, with this law written specifically for Bitcoin, is to allow even the less well-off people to take advantage of banking services, through the use of a wallet.
What kind of wallet doesn't matter, but I'll talk about that below.
But that's not all.
The whole philosophy of the President of El Salvador is projected towards the future and technical innovations; that's why he has seen fit to put Bitcoin side by side with the Dollar.
How it works
I wrote above that everyone can use the wallet they want (extremely democratic aspect) while for the most dubious or not technologically advanced, the government provides a wallet that automatically makes the exchange $BTC/$USD.
In this way the money is protected from volatility (but not from inflation).
Warning. The exchange is carried out through the purchase by the government of tokens in the possession of the citizen.
For this purpose 150 million dollars have been allocated through a trust fund.
The choice was apt: even without cyclopean trading operations, the government fund is bound to increase, bitcoin charts are visible to all!
The president has pretty clear ideas, and I must say that he understood Team Nakamoto's philosophy perfectly.
In this regard, he said that being free to be able to manage your own economic resources does not necessarily mean committing illegal actions.
Illegal actions can be committed with your wallet containing btc in the same way you can do with your wallet full of dollars.
On the contrary.
The transactions of BTC are all recorded, while if I buy smuggled goods with dollars, nobody knows anything!
Nayib Bukele has "thought" of everything, even mining.
As we know and as I also wrote here, bitcoin is energy intensive and therefore could increase the production of CO2.
Simply, having available an inestimable amount of renewable energy the President already has in mind to develop a working mining farm 100% green.
Not only that, and this is where all countries should take their cue.
The enormous heat that is developed by the volcanoes can’t be transformed completely and therefore there are energy losses.
From this thought has already in mind to develop an industrial area in the immediate vicinity totally powered by geothermal.
It is necessary to make a clarification: geothermal energy has been exploited for 50 years now, therefore it is not new, they are trying to get the most out of the new technologies available.
The Fund
The trust fund that has been set up is meant to take a step back in history: instead of having dollars in exchange for an empirical guarantee, you have dollars in exchange for the transfer of Bitcoin.
Kind of like what happened many years ago with gold....
This $150 million is bound to have an underlying! Economically it's one to watch very closely, I'm sure!
Follow along.
In the previous article I talked about the forced recession that managed to limit the rise in inflation as a result of the trillions of dollars printed by the FED.
As soon as the pandemic is contained everything will return to normal and prices will start to rise again and with them inflation.
With this 150 million of dollar fund the Salvadoran government is moving to avoid the Venezuela affair.
In fact many people, especially those of advanced age and traditionalists who need to "touch" the money with their hands, will immediately exchange BTC for dollars.
And there you have it!
What do you think?
