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Can Bitcoin Become An Official Currency For Any Country In The World?


The American “Wall Street Journal” raised a question about the possibility of transforming the cryptographic digital currency “Bitcoin” in an approved official national currency in any of the countries in the world, the chances of this happening in future and whether this is possible or not.

The American Wall Street Journal has discussed these possibilities in a report seen by Al-Arabiya Net entitled: “Can Bitcoin be a National Currency?”

The report noted that “a veritable Bitcoin laboratory has been created, providing both enthusiasts and skeptics with a test case to see how far cryptocurrencies can go beyond their current state of common, unregulated speculative investment. in legal currency, as it happened in El Salvador, which became the first country in which Bitcoin has been adopted as legal tender, forcing local merchants to accept it as a payment method. ”

The report pointed out that the International Monetary Fund criticized this move in El Salvador and said: “The fluctuations in its prices pose a great risk to the small economy and push debt on an unsustainable path.” Fund officials urged El Salvador and its government to change course, stop adopting Bitcoin as an official payment method and reconsider its decision on the matter.

But – according to the newspaper – El Salvador proves the exact opposite and plans to use half of the bond offer to buy more bitcoinand the other half to develop infrastructure, including the future bitcoin citywhich is a tax free zone for entrepreneurs.

The newspaper reported that El Salvador’s government filed legal tender for the cryptocurrency last September and now aims to raise a billion dollars to fund expansive economic policies by earning from these digital currencies.

The newspaper states that “since the adoption of the bitcoin as a currency in El Salvador remained poor in day-to-day transactions and a recent poll found around 70% did not trust the government’s move. El Salvador has also seen protests against the government’s decision to take bitcoin as the second official currency of the country “.

With Bitcoin as its official currency, El Salvador aims to make money by tapping into new lending markets and using the profits from cryptocurrency mining to support expansive economic policies under its president.

Salvadoran President Najib Bu Kila said the wealth of the bitcoin can tackle poverty and violence in the country and move it to Singapore, in Latin America.

Last November, the Salvadoran president announced his country’s intention to build the first city bitcoin to the world financed through bitcoin bond, upping the ante in game of the country bet on cryptocurrency.

Salvadoran officials say they are already considering raising up to $ 5 billion through several offers of guaranteed bonds from bitcoinaccording to the Wall Street Journal.

Samson Mao, chief strategist at blockchain technology provider Blockstream, a company that coordinates the offering of Bitcoin bonds for El Salvador, said the country will have no problem raising money from cryptocurrency enthusiasts.

While US citizens and businesses are prohibited from using Bitflinks, Mao said Americans can invest through intermediaries outside the US or through offshore funds that participate in bonds.

Mao said he has already received offers from potential buyers in the amount of $ 500 million.

The obligation bitcoin 10-year offers investors an interest rate of 6.5% with an additional dividend after 5 years, after El Salvador plans to start selling some of its investments in bitcoin at a higher price in future and reap potential profits.

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