The Bitcoin bill has been passed in the legislative assembly of the Central American nation El Salvador. It is now only a matter of time that it would be written into the law. The Salvadorian President, Nayib Bukele, has shared new development updates. Just like any other major development, crypto analysts and economists are rushing to calculate the possible outcomes of the event. A mixed purview of the incident has been noted by economist and monetary historian George Selgin.
In a Twitter thread, Selgin discussed the implications of Articles 7 and 13. He believes that Bitcoin adoption is a great win for the blockchain promotion. However, it could deprive the merchants of the region of the choice of preferred money. Discussing the details of the articles, it is clear that all consumers would have the right to offer Bitcoin for their purchase. Any pending bills before the date of Bitcoin legalization could also be settled in Bitcoin. Slegin added that it could pose a threat to the writ of government if the merchant society decides to go in the other direction.
More Experts and Stakeholders are Leaning Towards a Favorable Opinion for the Bitcoin legalization in Salvador
Paolo Ardoino, CTO of Bitfinex, told crypto-journalist that the legalization of Bitcoin in Salvador would prove what Bitcoiners were claiming all along. There have been doubts about the status of cryptocurrencies as a legitimate mode of payment. With Bitcoin acting as a legal tender on a national scale, it would become clear that it fits the job description perfectly. Ardoino also claimed that the benefits of financial freedom offered by Bitcoin would also become visible.
Humayun Sheikh, the founder of the blockchain artificial intelligence application enterprise Fetch.ai, claims that Salvador would serve as a safe place for Bitcoin-related developers. He further added that countries getting into Bitcoin have the potential to improve their wealth reserves. Jeffery Wang, head of the Amber group, also garners an optimistic view about the notion. He claimed that a whole nation accepting Bitcoin would remove the threat of regulatory absence for other countries.
Salvadorians would be able to Convert their Bitcoin Holdings at any Given Time with the Help of the Central Bank
The Bandesal development Bank of Salvador has set up a $150 million trust. As informed by President Bukele, the citizens and merchants would be able to buy Bitcoin from the banks. They would also have the option to convert their Bitcoin into a dollar at any given time. Paolo Ardoino from Bitfinex claims that cryptocurrency monetary infrastructure would allow the Central and South American nations to deal with the long-lasting economic problems that have persisted to date.
Sebastian Ramirez, Business Operations head at bitFlyer, told media that such a large-scale Bitcoin adoption would bring down the skepticism associated with Bitcoin trading. As more people would be able to use Bitcoin, the hesitation for blockchain technology would decrease. Ramirez also claimed that in the short term, it could present some issues. However, as the crypto space would spread, it would be elevated to a great fiat alternative position.