As El Salvador’s decision to make bitcoin legal tender nears its one-year mark, the country’s finance minister is defending his decision.
President of El Salvador Nayib Bukele proposed a measure on June 5, 2021 to make bitcoin legal tender. It became the first country to accept bitcoin as legal tender as a result of the action.
At the Bitcoin 2021 Miami conference, Bukele announced his plans to make bitcoin legal tender. On September 7, 2021, the legislation came into effect and bitcoin was recognized as legal tender.
The move was considered the country’s first trial of a volatile currency. But naysayers were quick to condemn Bukele’s choice, claiming it would promote more illegal and money-laundering operations.
El Salvador’s bitcoin game is doing well, according to finance minister
While the crypto market has gone through a prolonged bear market and the assets are not in their best shape, the country’s finance minister believes the decision has benefited the country.
Alejandro Zelaya says the country has brought financial services to much of the country without a bank account and has also brought in several investments and tourism.
He said he continues to rely on digital money even though its use as a trading tool is minimal, adding that the government is still preparing to issue a Bitcoin-backed bond using blockchain technology.
“For some, it’s something new and something they don’t fully understand, but it’s a phenomenon that exists and is gaining ground and will continue to exist for years to come.”
Zelaya said in an interview:
The current valuation of the country’s 2,381 bitcoin purchases is down nearly 50%, according to Bloomberg.
Although bitcoin is legal tender, a study by the US National Bureau of Economic Research states that a majority of businesses still prefer to receive and send cash payments. But since the country’s move, the IMF has warned the country to back down from its decision.
“We are not going to get results overnight. We can’t go to bed poor and wake up millionaires.” “New technologies have shown how in previous years people feared things like websites and digital business, but over time, reality has shown itself to be setting in.”
Zelaya
Speaking of BTC, it has: collected over the last 24 hours with a gain of 10%. Ethereum has shown much better performance with a gain of 14.65%.