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El Salvador doesn't have its own currency, it already uses the USD as legal tender, plus their crypto system is backed by USDT. This has been suggested as one
by dustintrex 5y ago
El Salvador doesn't have its own currency, it already uses the USD as legal tender, plus their crypto system is backed by USDT.
This has been suggested as one of the many reasons Bukele is so keen on Bitcoin/Chivo: he can't print USD, but having control of the national wallet system gives him countless avenues to manipulate the system.
- kevinak 5y agoI don't think that's accurate. Where have you read that they are using USDT?
- Sevii 5y agoMoving things to bitcoin with government registered wallets makes tracking a lot easier. Should make basic things like taxes and tariffs easier to enforce. Could possibly do a lot to shrink the under the table grey market in El Salvador. Of course it could also allow the government to do worse things like backdoor wallets and confiscate crypto.
- dragonwriter 5y ago> Moving things to bitcoin with government registered wallets makes tracking a lot easier. Should make basic things like taxes and tariffs easier to enforce. There are lots if wallets not registered with the El Salvador government, and it will be impossible for the government to distinguish those that are genuinely foreign from unregistered wallets used by people ot for purposes nominally subject to El Salvador’s laws. So, no, it won't make tracking any easier, nor wil it make taxes and tariffs easier to enforce generally.
- dllthomas 5y agoMy understanding (and admittedly I haven't read closely) is that this is a move to supporting transaction in BTC using an existing Salvadoran electronic payment system. In that case, it probably does reliably give increased visibility compared to cash payment.