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As of today, Bitcoin is an official currency of ElSalvador alongside the US dollar, after the Central American country became the first to adopt the cryptocurrency as legal tender. But there are fears that the adoption of such a historically volatile currency could harm Salvadorans, and risk economic stability.
ElSalvador introduced Bitcoin as a legal tender alongside the US dollar in 2021. The International Monetary Fund’s executive board has recommended ElSalvador no longer use Bitcoin as a legal tender , citing potential risks to financial stability and consumer protection. Illustration by Alex Castro / The Verge.
ElSalvador has passed a resolution to make Bitcoin a legal currency, which makes it the first country to do so ( via The Guardian ). The proposal was passed by ElSalvador’s congress on Tuesday night, after Bukele announced it at a Bitcoin conference in Miami last week. Illustration by Alex Castro / The Verge.
ust look at the numbers: 80 million unique crypto wallets; Bitcoin and Ether grew 60% and 407%, respectively; ElSalvadoradopted bitcoin as official currency; the NFT market generated $2.5 Have we reached a point where crypto and blockchain reach mass adoption? However, we anticipate that changing in 2022.
For instance, volatility is less of a deterrent to crypto adoption in countries such as Argentina, where legal tender isn’t exactly reliable. Another source of optimism, Chang said, is that “LatAm is actually ahead of the curve in terms of women in crypto.”
With the right resources, this region has potential for mass adoption of cryptocurrency. Although their impact is collectively yet to be noticed, with time, this may change. Nestcoin raises $6.45M pre-seed to accelerate crypto and web3 adoption in Africa and frontier markets. But M ARA wants to make an immediate influence.
Bitcoin has integrated with a layer-two protocol called the Lightning Network to increase its speed and efficiency while lowering transaction costs, a piece of infrastructure used by the nation of ElSalvador and major crypto exchanges such as Kraken. More than just an asset.
At Mashable, we've covered Bitcoin since at least 2017 , and we've seen some massive crashes , impressive price rises , community splits , and technology changes and challenges. Some nation-states, such as ElSalvador , have even opted in. We've consulted cryptocurrency experts on the matter. investment companies.
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