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Author: Admin | 2025-04-28
Bank has little authority over the money supply. Keeping track of how the Salvadoran Central Bank deals with Bitcoin will be a great study for future referencing on how the next legal tender adopters may utilise the legal tender. El Salvador has limited control over USD liquidity and supply, and therefore, deploying Bitcoin as legal tender is not as radical a step as countries whose central banks maintain their own currencies, yet still a great testing ground for this model.Bitcoin applications beyond store of valueBitcoin’s use in El Salvador will provide a solid use-case of what the digital asset’s daily use will be as opposed to the US dollar. Although Bitcoin is mostly used as a store of value, its November update, “Taproot”, will allow for dApps development and smart contracts, amplifying its usable properties. This update, the first in four years, opens the network for applications that lead towards BTC-based DeFi, NFTs, other financial services, extending as far as voting systems that could be integrated with centralised governance like central banks. Meanwhile, crypto startup Strike continues to build El Salvador’s bitcoin payment system. With Taproot’s update on the way and startups servicing the country, El Salvador is set to become the first, of potentially many, examples of how a population will choose to implement bitcoin into their daily lives as a national currency.USD money supply, in billions of dollars. Source: FRED.ConclusionBitcoin becoming legal tender in El Salvador is another example of the asset’s accomplishments. In only 12 years of existence, a decentralised digital cash protocol created by an anonymous developer(s) became a country’s official currency. It is also the biggest advancement in crypto regulation yet, as there is no higher regulatory step for territories than to officially recognise it as their own currency. Whether other territories follow suit in
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