El Salvador is getting a lot of attention for a little known country whose GDP in 2020 was only $24.64 bn (0.02% of the world economy).
After El Salvador announced the stunning move to make Bitcoin legal tender on 25 June 2021, Daily Fintech opined 10 reasons El Salvador President made the right call on Bitcoin at the right time.
In this 4 parter we dig deeper as big powerful people and institutions attack El Salvador verbally. The stakes are very high for two reasons:
- China, EU and America are battling over whose currency will be the next global reserve, but the future may not be a single reserve currency; it maybe a multipolar world and Bitcoin might one of those poles.
- For Bitcoin to be a real contender it has to be more than a store of value in the West for investors who worry about inflation. It has to also be a legal currency for everyday spending. For this currency use case, Bitcoin in the West is a solution looking for a problem, but in the Rest of the world (such as El Salvador), Bitcoin is better than either having a failing Fiat currency or having all the risks and none of the rewards of using the US dollar.
There will continue to be a lot of wealth creation in countries investing in and building the Blockchain Economy. That can include already wealthy countries like Switzerland as well as innovation friendly countries in the Rest of the World like El Salvador.
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