Is it convenient? Is it really necessary? A look inside the Bitcoin world.
Article written by Emanuele Magrini - 01.07.2022
Let's remember first of all what Bitcoin is, that is a technological experiment consisting of a computer network that manages the first native digital currency, bitcoin (When we read it written with a lowercase letter we refer to the currency, instead with a capital we speak of computer protocol ).
Bitcoin can be used by anyone in the world, can be traded without the use of intermediaries, and is free from censorship or centralized controls.
Basically, for a sovereign state, making Bitcoin legal means recognizing it as an effective official currency that can be used for transactions.
But we actually have to make some distinctions, since states can make Bitcoin legal tender in a number of ways.
El Salvador has adopted bitcoin as its legal tender and has also added coins to its state coffers.
Additionally, Nelson Rauda Zablah, a Salvadoran investigative journalist, at the Oslo Freedom Forum, said that Bitcoin has been co-opted by President Bukele's government and is being used to distract from deep-seated problems of corruption, human rights violations and embezzlement and poverty in the country. . He claims that the state Chivo wallet is being used as a surveillance tool by the government, which is in contrast to Bitcoin.
"If you believe in Bitcoin, you can cheer on the president and the government for giving us this tool of financial freedom and still invite them to respect democracy, the rule of law, separation of powers, freedom of the press and everything in between. things humans need, "Zablah added.
The International Monetary Fund has also criticized El Salvador's choice, but recently Kristalina Georgieva, Chief Operating Officer of the International Monetary Fund (IMF) said that the recent problem related to the Luna project should not become the reason why people completely turn around shoulders to the cryptocurrency sector.
"This space offers us faster service, much lower costs and greater inclusion. But only if we separate the apples from the oranges and bananas."
"When I say that Bitcoin can be called 'money' but it's not money. Why? Because a prerequisite for something to be money is to be a stable store of value. So you can actually plan around that", added Georgieva.
Instead, the city of Lugano in Switzerland has taken the 'De Facto' Legal Course of Bitcoin, in practice a less formal adoption but which aims to stimulate the use of bitcoin in "daily payments".
This last example is not an official legal tender adoption but it is proof that there are various ways to incentivize the use of Bitcoin, both riskier and less risky.