In what could be contemplated as a harbinger in widespread adoption of crypto assets, El Salvador had adopted digital assets as legal tender on Tuesday as promised by the island country’s President Nayib Bukele, as a tourist-dependent economy of El Salvador hopes to ride on the back of a bitcoin wave.
However, in the El Salvadoran beach town of El Zonte, a widely hailed surfing hotspot, adopted bitcoin as a modality to make payments about three years ago after an anonymous donation had kicked off a bitcoin beach project.
Nevertheless, as of September 7, every El Salvadoran citizen alongside tourists from all over the world had been allowed to make transactions in bitcoin in the country, a dramatic turn of events from President Bukele that came forth just days after the country’s Supreme Court had made him eligible to be elected twice as president.
El Salvador begins to surf on bitcoin wave
In factuality, in context of a pandemic-shattered tourism industry in El Salvador, the country’s residents appeared to have found a new way of living with bitcoin being legalized, while prospects are rising that the country could become a safe-haven for DeFi (Decentralized Finance) transactions.
DeFi transactions could be referred to a way of making payments without being involved or traced in conventional banking system, however, uncontrolled DeFi transactions had reportedly escalated the dangers of payments for illicit activities.
Apart from a roaring demand of decentralized finance, millions of El Salvadorans working in the US and Canada would be able to save hundreds of millions of dollars in commissions while sending foreign remittances in bitcoin.
Nevertheless, scepticisms were rising over a mass-scale adoption on crypto assets as a number of critics were quoted saying that the move from President Bukele would create El Salvador a safe-haven for money laundering while causing an irrevocable damage to the country’s financial nomenclature.
Aside from that, more than a half of El Salvadoran population which had little or no access to internet, would struggle to access the technology.