El Salvador

The President of El Salvador, Nayib Bukele, just announced to the big Miami Bitcoin conference going on that El Salvador plans to be the first country adopting Bitcoin as legal currency. There was a standing ovation for that announcement, as well there should be.

Bitcoin shines for developing countries. For El Salvador it will help reduce cost of remittances. It will help the currently 70 percent of the population without banking services.

Last I checked (already close to 10 years ago), the country was in my list of those with over 60% of renewable energy. Obviously they will also hold bitcoins and add to their holdings by using some of their hydropower.

At the same conference, Square and Blockstream announced a modestly sized project to mine bitcoins with solar power. They plan to have a dashboard accessible by the public on the economics of said project. Maybe someone will be interested in porting this kind of thing to El Salvador.

This also has some consequences in other countries like Japan, which drafted their laws under the premise that Bitcoin is not legal currency in any other country. They will need to rethink said premise and change some of these laws. If bitcoins are handled like dollars under Japanese law, that changes a lot of things.

Published by kflenz

Professor at Aoyama Gakuin University, Tokyo. Author of Lenz Blog (since 2003, lenzblog.com).

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