Bitcoin adoption is ongoing, and is rapidly expanding.
This adoption and expansion shifted from individuals and institutions to governments and countries, where the President of El Salvador had previously announced his interest in Bitcoin and submitted a proposal to consider it as a currency and include it within the assets of the state treasury.
El Salvador’s President Nayib Bukele took to Twitter to announce the news and even revealed that citizens won’t have to pay any capital gains taxes on bitcoin because it’s now legal tender.
The president also changed his Twitter profile picture to make his eyes beamed with lasers, an ongoing popular trend espoused by Bitcoin enthusiasts:
Just a day after the announcement made by the President of El Salvador.
Another country that has hinted at joining Bitcoin is Paraguay.
A prominent Paraguayan politician has also changed his profile picture to include laser eyes and revealed a big announcement coming this week alluding to the adoption of Bitcoin and potentially legal tender as well.
Why are countries turning to bitcoin now?
The upside of 2017 was largely led by retail investors watching institutions from afar, as most institutions and companies weren’t sure if Bitcoin was just an internet bubble or something else.
Then institutions accepted bitcoin and rushed to hop on the bandwagon, including large corporations that added bitcoin to their treasury.
Now, countries like El Salvador and Paraguay have realized that Bitcoin offers censorship-resistant money that helps them see the GDP growth of their boycott.
El Salvador could play a role similar to “micro-strategy” and start a domino effect for other countries to join the Bitcoin bandwagon.
The main reason these countries are switching to bitcoin is the depleting value of the dollar, which may not be a big problem for the likes of the US in the short term as they can print as much as they need, but many small businesses and other nations are struggling a lot.
The President of El Salvador explained that Bitcoin will prove to be a boon to the country as a legal currency because it provides financial inclusion and the fact that 70% of the country’s population does not have bank accounts, and added:
70% of El Salvador residents do not have a bank account and work in the informal economy.
Financial inclusion is not only a moral imperative, but also a means of developing a country’s economy, providing access to credit, savings, investment and secure transactions.