BLUF
El Salvador is the first country to introduce Bitcoin as a currency; and the country is being closely monitored by the international community, who are interested to see if Bitcoin can work as a currency.Summary
El Salvador is the first country to make cryptocurrency legal tender, note the following points:
- Helps the country's powerful drug trafficking gangs.
- It could bankrupt the developing nation.
- The government has already spent $200 million on bitcoin.
- ATMs and the national crypto-wallet brought $75 million worth of bitcoin and are borrowing $1 billion to buy more bitcoin and build a tax-free "Bitcoin City".
- Half of El Salvador's people cannot use bitcoin as they have no internet access.
- It could also encourage cybercrime with widespread cryptocurrency and identity theft.
- Bitcoin is subject to wild price fluctuations.
- Many Latin American countries, plus Russia, are also seriously interested in adopting cryptocurrencies.
References
Recent Runway Posts related to this topic:
- What is Bitcoin’s fundamental value? That’s a good question- TheRunway (airforce.gov.au)
- Inside the cryptocurrency scam: 'Frank' explains how European scammers target Australians for millions- TheRunway (airforce.gov.au)
- Fed Governor Waller Comes Out Strongly Against Central Bank Digital Currencies, Praising Alternative Currency Based Private Payment Systems Such As Stablecoins- TheRunway (airforce.gov.au)
References from the Web :
- JAN 22 IMF urges El Salvador to remove Bitcoin as legal tender - BBC News
- FEB 22 El Salvador Turns to US Bitcoin Wallet to Revamp Chivo - Blockworks
- MAR 22 Six months in, El Salvador’s bitcoin gamble is crumbling - Rest of World
Source Information ABC News Australia:
- Article Source: ABC News Australia
- Media Check: Media Bia/Fact Check - ABC News Australia
- RAAF RUNWAY: RATIONALE, GUIDELINES, LEARNING OUTCOMES, ETC |
