The Saviour
El Salvador has become the first country to adopt bitcoin as legal tender.
It wasn’t China, America, Russia or even Japan who is first to adopt Bitcoin as currency. It is El Salvador.
Salvadorian President Nayib Bukele is officially the only President in the world who has the foresight and balls to make it happen.
And if it’s not enough to lead the effort on governments adopting the first global digital currency, there is talk about anyone can earn citizenship if you invest 3 or more Bitcoin into the country.
And the icing on the cake. On 1 January 2001, the government in El Salvador gave up control of its monetary policy. It abandoned the fixed exchange rate and "dollarized" the economy. Thus, U.S. dollar became the standard and primary currency. Until now, where Bitcoin will be an option for not only locals buy for international investors.
Why this Matters
I have said it multiple times before - Countries that embrace Bitcoin and provide incentives for Bitcoiners to invest in their economy will win big in the early days. The fact that it’s a currency in El Salvador means there is no capital gains.
I can’t imagine how many Bitcoiners are searching “Beach front property for sale in El Salvador”.
Considering many countries are in the same boat as El Salvador, this may lead the way for adoption in the coming months. Here are others that are pegged to the dollar, that could simply follow the lead:
Commonwealth of Puerto Rico
Ecuador
Republic of El Salvador
Republic of Zimbabwe
Guam
US and British Virgin Islands
Democratic Republic of Timor-Leste
American Samoa
Commonwealth of the Northern Mariana Islands
Federated States of Micronesia
Republic of Palau
Of course, I realize none of these are massive economic powerhouse countries, and their economies are but a fraction of the United States. But don’t underestimate the small guy. Tech has a way of killing giants.
I for one, can’t wait to visit a country that embraces a future of freedom, fairness and equality. You know, what America used to be.