Your journey of discovering “What is Forex Trading” is perhaps one of the most versatile topics that you have met. I am pretty sure that you have come across several related topics which you have never thought would capture your interest one day. You have learned trading strategies, markets, computations and even the different types of currencies. Perhaps, you are even thinking of memorizing the designated values of both strong and weak currencies. Today, we will give you another forex related discussion but we assure you that this will be an easy one. We are going to talk about cryptocurrencies and the various countries that are predicted to follow the footsteps of El Salvador.
The El Salvador Issue
It has been circulating over the news that El Salvador’s law making body has approved the use of Bitcoin as a legal tender on June 9. Thus, this country is currently the first ever country to approve the legalization of Bitcoins as a form of payment for services and goods. This move however caused several opinions coming from financial experts. Some believe that El Salvador’s effort to utilize the said cryptocurrency as a legal tender will be expensive and will cause security issues. Thus, Bitcoin according to some experts is not a feasible legal tender.
The Other Side of the Story
Despite the negative feedback coming from most of the experts, it is obvious that the El Salvador government is positively looking forward to the success of their decision. They seem to be determined to take Bitcoin to a higher level. Though the utilization of Bitcoin may not be mandatory to all individuals in El Salvador, the government has started a campaign on the promotion of its usage. One good proof of this move is the distribution of starter accounts with $30 Bitcoin deposit to start with.
What is in it for them?
We are all aware that prior to the legalization of Bitcoin, the US Dollar was utilized as a legal tender. Now that Bitcoins are in the limelight, the El Salavador government will use both types of currency as a legal tender. The US Dollar will always play its role as a currency that will help lessen the effect of inflation rate in the country. Moreover, the government also thinks that Bitcoins will also be beneficial to the people and the economy through remittances. They are certain that more and more people will be receiving and sending remittances using Bitcoin as it has cheaper charges than the traditional manner of sending remittances.
Other Countries that are Expected to Utilize Cryptocurrencies as Legal Tender
Since cryptocurrencies are well known among individuals who have awareness on “What is Forex Trading? “ Here is a list of the most voted cities which are believed to follow the same footsteps as El Salvador. Note that the votes came from the financial experts who took part in a research study on Cryptocurrencies as a legal tender.
- Paraguay -143,725 votes
- Venezuela -105,496 votes
- Anguila -62,905 votes
- Panama-27,677votes
- India -24,440 votes