DMR News

Advancing Digital Conversations

Bitcoin brings hopes, doubts for Salvadorans sending money

ByMike Paul

Oct 13, 2021

President Nayib Bukele who is regarded as a fervent proponent of cryptocurrency deals with the matters regarding Bitcoin. 2+million Salvadorans who live overseas have been asked by him to send their remittances in Bitcoin.

He tried to convince the people by arguing that it would be relatively cheaper than to transfer dollars. According to him, it would further lead to the stimulation of foreign investment. 

El Salvador has put up a bet that the current week’s pioneering adoption of Bitcoin will completely spur the economy. Its effect would be more in sources of revenue which are quite crucial such as the money which is sent to a home in the United States by Salvadorans.

What’s the opinion of others regarding the decision of El Salvador?

Some people regard the system as way too complicated as well as opaque. The individuals who are residing abroad or even their homes for that matter would be quite uncertain about the plan which would be implemented soon.

Others are sceptical about the way the value of Bitcoin can simultaneously rise as well as fall completely overnight which has the potential to give windfall or loss to the fellow recipients.

William Justo is a 44 year old Salvadoran living in Chicago from the year 1986 spoke about how digital currency is offering the platform to set up access to something quite identical to a bank.

Money can be made after the currency starts rising. Through this most of the farmers would also have access to all of it. Remittances are sent by Justo each week to his wife, grandmother as well as two children. Justo believes that it can do wonders in the economy.

He also spoke about sending bitcoins instead of dollars in support of the decision. Aged people, as well as farmers of the Salvadorans living in the United States, are not updated with the recent changes in technology. For them, it would be quite complex and confusing.

Is Bitcoin viable everywhere?

Bitcoin is considered to be an alternative to the money backed by the Government whose existence is only marked in circuits as well as the memory of a computer. It is done purely based on cryptography as well as data scrambling.

Cryptocurrency constitutes higher power to process as well as to distribute blockchain which is regarded as a global ledger. All the transactions are recorded by it. Its value hasn’t been communicated by any central bank or other financial institutions which is completely set by the traders of Bitcoin. The independence, as well as the secrecy it possesses, have made it favourable to people to suspect the Government and criminals who try to hide their transactions.

Cryptocurrencies have already been dabbled by some of the other countries but unfortunately, none of them was going far like El Salvador. Now all kinds of businesses have to accept payments in Bitcoins except the ones who aren’t that familiar with the latest technology.

Mike Paul

Mike was one of the founding members of DMR, he was a pivotal figure in the early stages of DMR. Mike has since left the team to pursue his career in software development.