El Salvador can do better with its bitcoin legal tender law

What steps should El Salvador take to further Bitcoinization and foster its economic development with the crypto sector

Andrea Bianconi
Jun 23 · 13 min read

Saylor and Tudor Jones: it´s time to start lobbying for Bitcoin

The recent move by El Salvador´s President Bukele to render bitcoin legal tender in the country was widely reported as a very important step towards bitcoin adoption. Though I agree that this is an historical step towards wider bitcoin adoption by sovereign nations and I clearly saw this coming, I have some concerns about how this is being done by El Salvador. In particular, I am against any “forced” adoption of bitcoin which, to use the words of Nic Carter, should better continue to “ flourish on its own merits “.

What means “legal tender”

Each country establishes by law which means of payment are accepted as “legal tender” within its borders. This signifies that the chosen means of payment will, BY LAW, extinguish debts or settle tax payments, obligations and legal fines or damages.

Legal tender vs “coerced” legal tender

A “bitcoinization” framework for El Salvador and all emerging economies

In addition to sharing George Selgin´s observations, particularly on the article 7 and the risks for the “bitcoin trust fund” under article 14, I would like to focus on broader policy measures: what should El Salvador do to adopt bitcoin and further its economic development.

The Bitcoin community should help and the likes of Saylor and Tudor Jones shall do their part

“Lobbying for Bitcoin”

Even if I hate the word, “lobbying” for Bitcoin sums up pretty well what I mean and what is needed here. The Bitcoin Mining Council does not even comes close to what is necessary. A much broader and comprehensive effort is required to challenge multiple narratives that are spread by powerful interest groups with US$ hundreds of millions to spend. Many competent crypto authors independently publish good articles, papers, podcasts and interviews to counter the disinformation machine, but only investors with large bitcoin vested interests like Saylor and Tudor Jones have the financial means to create a more powerful structure to coordinate and promote the massive response effort which is required. More importantly, emerging economies must be targeted with a precise “bitcoinization development plan” (as I have roughly described above) and supported in the whole transition phase. Also, crypto business leaders must bring their businesses into those countries to help them develop a Bitcoin based economy and services.

Conclusion

Some may say, “who cares about El Salvador?” How much weight does poor little El Salvador carries in world affairs?

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Andrea Bianconi

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Coinmonks

Coinmonks is a non-profit Crypto educational publication. Follow us on Twitter @coinmonks Our other project — https://coincodecap.com