Issue 138: June 10, 2021
Thursday, June 10th, 2021
Bitbuy Product Update
Weekly Market Update
Big Story: Is El Salvador The New Bitcoin Capital?
El Salvador is quickly becoming one of the most popular countries for Bitcoin fans, after a pair of BIG announcements this week.
First off and most importantly, the country has formally adopted Bitcoin, the world’s biggest cryptocurrency, as legal tender in the country. After being introduced to Congress as a bill this past Saturday, it was officially passed on Wednesday and will take effect in 90 days.
This means that any business in the country will have to accept Bitcoin as payment for services or goods, unless they lack the technology to do so. No one will be forced to use Bitcoin, but it will be a secondary option for businesses and citizens to use for transactions.
Along with the announcement, the president of El Salvador, Nayib Bukele has actively engaged the global crypto community, putting the country on the radar of many.
El Salvador has taken this historic step, for a few reasons. First off, to allow more of its citizens to access a fair and global financial system. Currently, 70% of Salvadorans do not have a bank account. Through education and widespread acceptance, the hope is that these citizens can be onboarded to Bitcoin without facing the same barriers they faced with the traditional financial system. This will also assist the millions of Salvadorans working abroad in sending money to friends and family, as they’ll be able to avoid expensive money transfer fees to intermediaries.
Secondly, the move is expected to entice cryptocurrency entrepreneurs and investors to invest in the El Salvador economy, and create jobs and opportunity. Any entrepreneur, who invests over 3 BTC in the El Salvador local economy, will now have the opportunity to get permanent residency.
President Bukele went on to say, “Bitcoin has a market cap of $680 billion. If 1% of it is invested in El Salvador, that would increase our GDP by 25%”
The second announcement of the week may not be as important, but it definitely sounds pretty cool. President Bukele said on Wednesday that he has told geothermal companies in his country to develop a plan to mine Bitcoin from energy produced by El Salvador’s volcanoes.