Bitcoin y El Salvador

Samson
Corsair's Business
2 min readJul 7, 2021

--

Money often costs too much. — Ralph Waldo Emerson

On June 5th, at the Bitcoin 2021 conference in Miami, El Salvador’s President Nayib Bukele announced that the Central American country is in the process of adopting Bitcoin as legal tender: a move that would make El Salvador the first country to deem bitcoin an official national currency. What does this mean for the future of Bitcoin and blockchain-based digital currencies?

To find the answer, we have to acknowledge the fraught political history of El Salvador and the geopolitics that led to over 25% of El Salvadorians living on less than $5.50 USD per day, to this day. Note that 25% of El Salvadorians living on less than $5.50 a day is an improvement over just a decade ago when it was 40%. What does the poverty rate in El Salvador have to do with Bitcoin and potentially, Central Bank Digital Currencies? Everything.

To help the reader understand the confluence of forces surrounding El Salvador’s decision, we’ll break this article into four briefs that touch upon the political, economic, cultural, and technological facets of this historical moment. As a primer, some simple facts to consider:

  • Only Nations with weak economies and fragile or nonexistent currencies are considering Bitcoin
  • Bitcoin doesn’t solve nor address National debt
  • Bitcoin doesn’t solve unemployment or under-employment
  • Bitcoin doesn’t solve nor address climate change, deforestation, and land degradation that have made El Salvador increasingly vulnerable to climate variability and extreme weather events over the last 30 years.
  • The poor will still be poor, as Bitcoin, like any currency, must be earned. If currency doesn’t need to be earned, then we have to discuss how Socialism has historically worked in Central and South American countries.

Follow us as we investigate the underbelly of El Salvador’s experiment in state-sanctioned money laundering that is Bitcoin as legal tender. As Emerson said, “…money is too expensive…” unless the poor are going to pay for it.

About the Authors

Samson Williams is an adjunct professor at Columbia University in NYC and UNH School of Law. When not exploring the realities of blockchain, cryptocurrencies and The Space Economy Samson is President of the Crowdfunding Professional Association because Customers have more money than VCs.

Jung-Ju Lee is a senior research assistant on emerging technology at the Johns Hopkins Foreign Policy Institute. She has a B.A. from Cornell and M.A. from Johns Hopkins in International Economics and International Relations. Her research explores the geopolitical economics of chips and crypto.

--

--

Samson
Corsair's Business

Cheerleader of all things startup and entrepreneur. Life's a hustle, invest in something worthy of you. @AxesAndEggs @UNHLaw #Blockchain #Cryptocurrencies