This week corrected the bitcoin (BTC) rate and with it the rest of the altcoin market hefty. This while this week was a very important step in the history of Bitcoin and perhaps humanity in general. The Bitcoin law in El Salvador has come into effect. Why is this important news for us too?
Bitcoin (BTC) next to the US dollar
Without going too deep into exactly what El Salvador has done, it has already been discussed extensively on Crypto Insiders, here is a short summary. El Salvador now accepts bitcoin as legal tender. Every citizen can now pay with bitcoin at shops and companies in the country. These companies must accept bitcoin or they will face sanctions.
Bitcoin will be on par with the US dollar, the only other legal tender in El Salvador. A significant step if you look at the history of Bitcoin; once started in the small alleys of the internet, developed by an unknown person but now legal tender of a country!
The Bitcoin law in the Pacific country bordering Honduras and Guatemala may feel like a far-from-your-bed show. However, it is important to understand what this law means in practice.
Big companies must now venture into bitcoin
As mentioned, all companies in El Salvador now have to offer bitcoin as a payment method to their customers. wire transfer companies as Western Union will face strong competition of bitcoin which can save Salvadorans hundreds of millions of dollars. Large international companies also remained largely on the sidelines with regard to bitcoin due to unclear laws and regulations in the rest of the world. Also, there is a technological barrier that prevents them from taking the step to accept crypto.
But in El Salvador they now have to. Companies like McDonald’s, Pizza Hut and Starbucks have all now implemented a payment system to comply with the requirements of this new Bitcoin law. So El Salvador has now become an important testing ground for these large companies where they can test these crypto payment systems in practice. Not only good news for bitcoin, altcoins can also benefit from this big step for the adoption of crypto in the future.
Global retail giant @Zara now accepts #Bitcoin in El Salvador! https://t.co/886pSLi84G
— Bitcoin Archive ???????????? (@BTC_Archive) September 11, 2021
The arrival of Bitcoin is not a party for everyone, by the way. For example, several groups took to the streets in El Salvador to protest against the law. It is mainly the volatility that many people fear. Still, the law is now a reality and we will see how bitcoin performs as legal tender in a country as an alternative to a fiat currency.
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