In the program “Blockchain Alliance Block”, which is broadcast on the YouTube platform, this June 11th was discussed on the topic “El Salvador: between challenges and opportunities.”
To discuss this matter, the panel was made up of renowned personalities from the ecosystem, such as: Rodolfo Andragnes, Joan Godoy, Alejandro Machado, Jorge Valenzuela and Carlos Toriello. The dialogue, organized by the different bitcoin, cryptocurrency and blockchain communities in Spain and Latin America was moderated by Mauricio Tovar.
At the meeting, which lasted more than an hour, the guests shared their vision, not only from a positive point of view but also through a more critical view of what is happening in El Salvador. The congress of this nation approved “via express”, days ago, a law to give legal tender to bitcoin (BTC) in its territory, as reported by CriptoNoticias.
Regulation of bitcoin law will be transcendental in the next 90 days
Joan Godoy, a political science student in Guatemala and co-founder of the Coincaex exchange, began by recounting the law that gives legal tender to bitcoin in the Central American country. He considers that this regulation represents a clear vision of the President of El Salvador, Nayib Bukele. According to Godoy, the age of the president (39) and his environment allow him to have access to certain information, “which makes him an intelligent and educated person who cared about studying what bitcoin is”.
He added that this law contains 16 articles and that it seeks to do the same thing that happened with the dollar, which is to establish bitcoin as a legal tender. As he explained, “it has simple articles, but they are still in the process of developing the regulations for the next 90 days.”
However, Godoy considers that the importance of the law does not lie exclusively in the 16 articles it contains, but that what is going to be written in these regulations is more transcendental.
«The next 90 days after what happens in El Salvador are the transcendental ones to define how this issue is going to develop. There are so many aspects and variables that the government has to consider for which they only have 90 days. They cannot back down, “Godoy indicated.
For him, the congressmen who opposed the approval of this law did not have enough information on the subject. “They did not have the capacity to understand what was happening,” said the panel participant.
“Bitcoin made life easier for Salvadorans by leaps and bounds”
Minutes later, the moderator Mauricio Tovar, took the baton to put on the table the central topics of discussion among which he pointed out: «What implications does this decision have for the people of El Savior?” and “What are the benefits or risks that this proposal that El Salvador is leading may bring?”
To talk about what the Central American country is currently experiencing around this issue, he took the word Jorge Valenzuela, founder of Bitcoin Beach in El Salvador. He said that one of the greatest benefits that this government decision has brought to the population “is extremely simple”:
What bitcoin came to do to this community was to change lives, because children are being created the habit of saving in bitcoin, which they did not previously do with fiat money because if they saw They spent something they liked.
Jorge Valenzuela, founder of Bitcoin Beach.
Valenzuela considers that it is a disadvantage that in the economy of El Salvador the dollar and bitcoin cohabit, and not only the cryptocurrency circulates. In the end, he said, “bitcoin is still being used in the same way it used to be in that nation. The difference is that now there is only one legal protection that establishes that if the price of bitcoin fell when a good is bought, no difference should be made. ”
He expressed that the problems have also been overcome of connectivity in homes before the approval of the bitcoin law. Now, in Salvadoran homes, as he mentioned, there are two or three mobiles with internet. In addition, with this technology, “people who were not banked will have an account in bitcoin, so it makes no sense to convert it to fiat money if people already have the cryptocurrency in their hands.”
Consider that the most beautiful thing, at the end of the day, is when time is classified into money.
That lady who was going to queue to withdraw the money at the bank lost it. Now that woman is being returned that money and if they are sending her a certain amount of money, she receives it in her bitcoin account in a second without having to leave her home. Bitcoin made life easier for Salvadorans by leaps and bounds.
Jorge Valenzuela, founder of Bitcoin Beach.
The risks of automatic and immediate bitcoin-dollar conversions
For his part, Alejandro Machado, a graduate in computer studies from the Simón Bolívar University in Venezuela, analyzed the risks of this measure from his perspective in El Salvador. He expressed concern about the fact that the financial entity Bandesal is in charge of making the “automatic and immediate” conversions between bitcoin and the dollar as established by law. In this regard, he explained that in free markets there are no such “automatic and immediate” conversions .
In his opinion, «that alone Before, it happened in Venezuela where there was a jet of oil and the government was in charge of balancing things until, of course, it didn’t work. Machado added: “This has to be seen in great detail, although the government of El Salvador is not the same as in Venezuela, but you have to be very careful about how this mechanism is designed.”
In In the middle of the conversation, Rodolfo Andragnes, president of the NGO Bitcoin Argentina, intervened to say that “in a space of free trade it will be the private sector that will ensure that there is liquidity, as happens with exchanges anywhere in the world.”
Carlos Toriello, Guatemalan entrepreneur, clarified that according to articles 8 and 14 of this law, the government does not intend to compete in this activity with the private sector . In addition, he believes that people will not use the government purse if entrepreneurs offer Salvadorans better products, technology and education. According to him, “with an efficient market the weight of the State is reduced”.
Bitcoin traceability controls corruption in any country
Joan Godoy added that the handling of corruption with the delivery of bitcoin in El Salvador controls because one of the advantages of cryptocurrency is that it is traceable , which allows setting the correct audit parameters. “There is nothing more anonymous than cash, which is the main incentive for corruption,” added Godoy.
Andragnes specified that with bitcoin transparency any abuse action is eliminated , for which three situations have to be given: justification, necessity and opportunity. Bitcoin, in a way, reduces that opportunity for abuse because it makes mismanagement visible. He believes that in the short term this will generate a domino effect in Latin America, breaking with the hegemony of the United States and the economic manipulation of the dollar.
Godoy added that, according to him, the northern triangle of Central America is a strategic point: «El Salvador’s action to legitimize bitcoin forces all central banks in the world to question: ‘now, bitcoin is a currency’. This effect can extend beyond the borders of the region. ”
Regarding the possible adoption of bitcoin in Guatemala and Nicaragua, Valenzuela assured that these countries are already working on their instrumentation . However, he called on the people of each country to draft a bill like the one recently approved in El Salvador.