Hi,
today marks the day, where BTC became a legal tender a year ago. It happened in El Salvador, where the adoption of BTC should help the struggling economy and also boost economic exchange.
BTC should also help, the sending of funds from outside the country, which would enter the economy on a faster pace.
Well, one year after BTC took a deep drop and people are not so hyped any more than one year ago. Nevertheless, the government from El Salvador kept the BTC as a legal tender, without selling the acquired funds from that time. As long as they are not sold, there would be no loss. Of course, there is a book value loss, but this is a different story, as they will not get any credit based on this asset.
For them, it was a smart choice, as more money came into the economy. Relatives living abroad have sent some high millions value of BTC, BTC which fuelled the economy. Even if the economy is a spending one, bringing liquidity to it, can only make the goods and financial means move faster, generating more income from VAT.
With the gained taxes, the government can buy more BTC (as investment), or invest it in infrastructure, making the country more attractive for production and services, having a shift from a consumption economy to an income generating one.
It was a mart move in the end, even if the big guys have been against it.
How do you see it? Was it a good move?
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