• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play GamesTry
  • Bet & WinTry
No Result
View All Result
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play GamesTry
  • Bet & WinTry
No Result
View All Result
NewsBTC
No Result
View All Result
Bitcoin BTC BTCUSD
Nexo Logo

Why Bitcoin Declared Legal Tender Could Have Major Implications Beyond El Salvador

Reynaldo Marquez by Reynaldo Marquez
1 year ago
in Bitcoin
Reading Time: 3 mins read
Advertisement

The adoption of the Bitcoin Standard by nation-states has begun. El Salvador will become the first country to declared BTC a legal tender. The announcement was made recently; the crypto space and its industry are still processing its impact.

Although a relatively small country, El Salvador could trigger a similar effect as when MicroStrategy included BTC into its treasury. At that moment, a domino effect caused one of BTC’s biggest adoption periods by public companies.

As Nayib Bukele, El Salvador’s Head of State said via his Twitter handle, Bitcoin has a $680 billion market cap. If 1% of this number it’s invested in this country, according to Bukele’s calculations, their GDP could grow by 25%.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

After a violent civil war, El Salvador adopted the dollar as their official currency. Many went into exile or migrated to other countries with better economies. This had two consequences for the country: it relies on the U.S. dollar stability, with concerns about rising inflation in this currency seems logical for the country to promote an alternative.

As a second consequence, many people receive remittances. Around $6 billion are paid to third parties to process the remittances. Bukele claims that by adopting BTC, 1 million low-income families will benefit and will increase their incomes “in the equivalent of billions of dollars every year”. Bukele said:

On the other side, Bitcoin will have 10 million potential new users and the fastest growing way to transfer 6 billion dollars a year in remittances.

Further data provided by the Head of State indicates that around 70% of the country’s population are unbanked. However, many have access to a smartphone. Bitcoin will be a tool to create financial inclusion and help economic growth. People will be able to save, invest, access credit, and their transactions will be secured by BTC’s network.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!

One Small Step For Bitcoin, One Giant Step…

Many countries around the globe shared these conditions. Many wondered how much it will take for other Heads of State to notice the benefit of the Bitcoin Standard. In the U.S. alone, local government officials, senators, congressmen and congresswomen, and other government officials have celebrated the announcement.

Caitlin Long, a member appointed by the state of Wyoming to the Blockchain Select Committee and a 22-year Wall Street veteran, believes El Salvador’s decision could open a back door for banks in the U.S. to handle Bitcoin.

1/ THREAD ABOUT A HISTORIC DAY in #bitcoin: #ElSalvador president publicly announced support for legislation to make #BTC legal tender. *IF* it does become law, it wld have many secondary effects. Steel yourselves bc a big fight on this probably coming thohttps://t.co/BrrNxaLzpZ

— Caitlin Long 🔑 (@CaitlinLong_) June 6, 2021

Long clarified that “legal tender” it’s a commercial law term, it means that citizens can offer an asset to pay for an obligation and in exchange for a property. She added that:

Legal tender is key to commercial law, which is THE foundational layer of any legal system (…). Bitcoin is treated as an “indefinite intangible” which means lower-of-cost-or-market, but if it’s a foreign currency it gets mark-to-market up & down.

This means that BTC can be added to corporate treasuries without a company having to face “punitive accounting”. BTC could be treated as any other foreign currency. Thus, more companies could find benefits in adopting BTC. Long added that the cryptocurrency could be treated as money and explained:

it means Bitcoin would gain special status in banking systems globally. Banks would likely treat it as any other foreign currency. #Bitcoin *MAY* get back-door favorable treatment under bank capital requirements.

US Commercial Law Angle. If El Salvador actually goes ahead and recognizes Bitcoin as legal tender…Bitcoin then becomes "money" under UCC § 1-201…. 🧐 https://t.co/CQLZhXt2XE

— Andrea Tosato (@Andrea_Tosato) June 5, 2021

At the time of writing, BTC’s price action remains choppy and trades at $36,140. The cryptocurrency has been moving in the mid area of its current levels. There is much uncertainty for the coming weeks, many expect more downside, but the impact of the recent announcements could materialize in the short term and add fuel to restart the rally.

Bitcoin BTC BTCUSD
BTC moves sideways in the daily chart. Source: BTCUSD Tradingview
Tags: bitcoinbtcbtcusd
Tweet123Share196ShareSend
Win up to $1,000,000 in One Spin at CryptoSlots
Reynaldo Marquez

Reynaldo Marquez

Related Posts

bitcoin

Why Rich Dad, Poor Dad Author Will Wait For Bitcoin To Drop To $1,100 Before Buying More

16 hours ago
Bitcoin And USDC

USDC Exchange Reserves Rise As Investors Escape From Bitcoin

19 hours ago
Bitcoin network

Bitcoin Enters Hibernation Mode As Network Activity Lulls

21 hours ago
Fed Announces Inflation Warnings As Bitcoin Whales Remain In Wait Mode

Fed Announces Inflation Warnings As Bitcoin Whales Remain In Wait Mode

1 day ago
Mining Operators Fret As Bitcoin Looses Ground, What Lies Ahead For The Mining Community

Mining Operators Fret As Bitcoin Looses Ground, What Lies Ahead For The Mining Community

1 day ago
Bitcoin

Bitcoin Slides Under $20K – Another Collapse In The Offing?

1 day ago

Premium Partners

Top Brokers

PrimeXBT

PrimeXBT

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
7BitCasino

7BitCasino

Review · Visit
BC.Game

BC.Game

Review · Visit
Punt Casino

Punt Casino

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bspin

Bspin

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit
BC.Game

BC.Game

Review · Visit

U Promise Me: The Digital Promise Platform

July 1, 2022

XT.com Lists Land of Fantasy (LOF) With USDT Trading Pair

July 1, 2022

LYOTRADE Launches Crypto Loans—Get USDT and Win Against Volatility

July 1, 2022

Torches Genesis NFT Launching, Win Torchlight NFT to Unlock IDO Allocation

June 30, 2022

Crypto News Flash: Best Meme Coins to Explore in Bear Market 2022 – Floki Inu (FLOKI), Akita Inu (AKITA) and RoboApe (RBA)

June 30, 2022

ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Crypto Prices from Nomics

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2021 NewsBTC. All Rights Reserved.

  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play Games
  • Bet & Win

© 2021 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.