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This isn't about making things easier or better for ordinary people. If it were, the government wouldn't make it a crime for small businesses to not accept Bitc

by tdeck 5y ago

This isn't about making things easier or better for ordinary people. If it were, the government wouldn't make it a crime for small businesses to not accept Bitcoin in a very poor country with limited communications infrastructure. El Salvador has 3.8 million internet users out of a population of 6.4 million people.

fleddr 5y ago
What is it about then? What possible dark scheme lies behind a system where citizens can instantly swap between USD or BTC at no charge? Remittances aren't about easy, it's about bypassing fees in traditional banking that may be as high as 30%. As well making remittances possibly to people that are unbanked, yet do have a smartphone.
- tdeck 5y ago
  These policies go far beyond remittances. My understanding is that any business is required to accept bitcoin (through the government wallet system) for payment. In a mainly cash-based society this obviously gives the government more visibility and control.
  - fleddr 5y ago
    Being forced to accept Bitcoin is no different from being forced to accept any other legal tender, but you're right that the specific way in which it is implemented, is far from ideal. Most of the BTC community (if there is such a thing) also isn't happy with it. Then again, depending on the country, the traditional system also has deep insight into capital flow.
    - tdeck 5y ago
      I think it's different from cash in the sense that Bitcoin requires you to have an working phone with an internet connection. That might not seem like much, but if you're some guy selling bananas by the side of the road mobile data may be a tough tradeoff with other expenses. More than 20% of El Salvador's population lives on less than $5.50 a day.
doomroot 5y ago
This is true but not in the way you’re implying. El Salvador wants to attract bitcoin tourists. To spend bitcoin in the US it’s a taxable event, not in El Salvador though. If you are in your 20s with a few bitcoin you can live like a king in El Salvador for a few months and pay 0 capital gains.

by tdeck 5y ago

fleddr 5y ago

What is it about then? What possible dark scheme lies behind a system where citizens can instantly swap between USD or BTC at no charge? Remittances aren't about easy, it's about bypassing fees in traditional banking that may be as high as 30%. As well making remittances possibly to people that are unbanked, yet do have a smartphone.

tdeck 5y ago
These policies go far beyond remittances. My understanding is that any business is required to accept bitcoin (through the government wallet system) for payment. In a mainly cash-based society this obviously gives the government more visibility and control.
- fleddr 5y ago
  Being forced to accept Bitcoin is no different from being forced to accept any other legal tender, but you're right that the specific way in which it is implemented, is far from ideal. Most of the BTC community (if there is such a thing) also isn't happy with it. Then again, depending on the country, the traditional system also has deep insight into capital flow.
  - tdeck 5y ago
    I think it's different from cash in the sense that Bitcoin requires you to have an working phone with an internet connection. That might not seem like much, but if you're some guy selling bananas by the side of the road mobile data may be a tough tradeoff with other expenses. More than 20% of El Salvador's population lives on less than $5.50 a day.

doomroot 5y ago

This is true but not in the way you’re implying. El Salvador wants to attract bitcoin tourists. To spend bitcoin in the US it’s a taxable event, not in El Salvador though. If you are in your 20s with a few bitcoin you can live like a king in El Salvador for a few months and pay 0 capital gains.