This Thursday morning it was known the surprising decision of El Salvador: from now on, Bitcoin (BTC) will no longer be legal tender and will become a optional means of payment.
As confirmed Nayib Bukelepresident of El Salvador, this decision was taken at the request of the International Monetary Fund (IMF) within the framework of a technical agreement for some US$1.4 billion to support the government’s reform agenda.
On the other hand, today the market began to decline, and doubts arise about whether this decision affected the price of the asset y What consequences could it have in the future?
El Salvador took a big step with Bitcoin
Hernan Gonzalezfounder of Bitcoin Stratosexplained to iProUP that Bukele was, without a doubt, the first president to bet deeply on Bitcoincomprising a large part of the revolution proposed by this network.
Thanks to this, during 2021, El Salvador became the first country in the world to accept cryptocurrency as legal tender.
“Considered The government’s decision to accumulate BTC daily in its coffers is very goodgenerating a strategic reserve with an average purchase price well below the current one and without compromising the government’s finances,” González stated.
What problems did El Salvador have with Bitcoin?
However, González pointed out that, in its bid to become a bitcoiner nation, El Salvador made some mistakes that led it to reconsider certain decisions.
“The recent approach to the International Monetary Fund, logically, implied conditions to obtain financingsuch as eliminating the forced nature of Bitcoin in the private sector,” he explained.
One of the biggest questions It was the obligation imposed by the Bitcoin Lawwhich required companies to accept BTC as a means of payment. González highlighted that the adoption of Bitcoin It should be an individual choice.
“Bitcoin does not belong to a country, a government or a company. Its legal tender does not necessarily guarantee something positive. A free competition of currencies better aligns with the essence of Bitcoin,” he emphasized.
The specialist added that this activityor it can be used freely and its adoption must be voluntaryeven when it is attempted to be imposed through regulations.
“It is positive that the government eliminates all persecution of Bitcoin and allows transactions and tax payments to be arranged in BTC, but always voluntarily“he pointed out.
Chivo Wallet: a failed experiment
González also pointed out that Chivo Walletthe government’s proposed digital wallet, was a problematic experiment.
This project generated hundreds of claims for technical failures, data leaks, identity theft and loss of balancewhich he described as a serious problem.
“This shows that forcing the adoption of a technology with good intentions It is not always the best decision. Stepping on the accelerator can generate rejection in society,” González concluded.
