It has been quite a few years since I started researching, until I ended up dedicating myself to divulging about emerging technologies and Bitcoin (among other things). And there were many articles related to uncertain future of everything that at some point was “novelty”.
One of the slogans that I have mentioned as a variable that could make Bitcoin stronger -and consequently more is accepted, leading to a possible rise in its value- is its use as a current / legal tender payment method.
What do I mean by this last paragraph? To start using cryptocurrencies as another common currency, to make traditional purchases on a daily basis.
Who are the “Argentine kings of Bitcoin” that settle in Patagonia
Go to the supermarket, buy clothes on Instagram, pay for the car repair and pay with crypto. All these, and many more, are options that come to mind to exemplify what I have in mind.
Today there is news that brings this opportunity to the table, and it comes from The Savior. As of this September 7, it became the first country in the world to use bitcoin as legal tender.
This news effectively ends by move and affect the market surely, and it will be a matter of being attentive and alert to the impact and force with which it will continue to move it from its implementation.
How does it affect other countries that introduce TCB in their economies?
But Beyond the Bitcoin market, how does it affect other countries that introduce Bitcoin into their economies? Thinking specifically of other Latin American countries … What would happen in Argentina if this decision were made?
On the one hand, the idea was rejected by the BCRA more than once this year, not just to consider the cryptocurrencies as means of payment, but also as financial assets.
The Central Bank discouraged investment in cryptocurrencies: “they are not legal tender”
On the other hand, in contrast, some think that it could be useful to combat inflation or devaluation. The country being able to get more dollars for its debt or reserve.
That is, how will you see everything is within the realm of uncertainty. However, I will choose to build a positive outlook on it and analyze those points that would positively impact society.
How and why the adoption of bitcoin as legal tender would positively impact
Let’s use the characteristics of money as a trigger:
We could start using it as a exchange method -or payment- to avoid moving with cash. And although there are credit cards, or bank transfers, with how devalued the currency is when making large transactions or operations … the amounts that are authorized are insufficient.
Another key function in BTC is to store of value. And here they are going to question that its price is fluctuating, but there I wonder if the peso is not fluctuating as well. Others will bet on another currency such as the dollar, but having treasured dollars too – even if it is little by little – loses its value over time. While betting on a secure crypto, in turn, will increase the value of the savings.
Now, going deeper still, I say: If there is something that will be able to make Argentines, and obviously Latin American society, be able to exploit the benefits of crypto to the maximum, it is financial education.
The way I see this information should be part of compulsory secondary education. To carry out this wish you could combat the mistrust of older generations, and other problems that tend not to educate prematurely could be avoided.
Last but not least, it should be mentioned that when faced with the need to perform international transactions the easiest and most comfortable way is crypto. And in this case, if anyone ever had to perform an operation, they will know how cumbersome and bureaucratic it can become. Not to mention that they bring a new pen, because the ink of the amount of papers that they are going to have to sign is going to run out. All this could be replaced by a couple of clicks … no punchline.
In summary, There is nothing totally certain that a Law like the one mentioned can positively serve the economy and finances of Argentina..
However, and in the meantime, We will be waiting for how El Salvador’s decision impacts the market, and how it affects the other countries that had this option in their “portfolio”.
For my part, I hope that all the consequences that come are those expected in a positive way to be able to expand this impressive market that can help many people and realities.
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