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Bitcoin in El Salvador: “Coexistence with banks possible”

(Photo: Chinnapong / shutterstock)

When Satoshi Nakamoto published the Bitcoin whitepaper at the end of 2008, Bitcoin initially received little attention. Even years later, larger institutions in particular did not believe that Bitcoin would have a right to exist in the future. Around 13 years later, things look different. While some people see the potential in Bitcoin that the first crypto currency will rise to become a world currency, detached from the rest of the financial system, others see Bitcoin as a threat to national currencies and financial stability.

Hillary Clinton and Donald Trump see a danger in Bitcoin

Bitcoin has “the potential to undermine currencies and destabilize nations,” former US Secretary of State Hillary Clinton told Bloomberg. Donald Trump also shares this opinion. “I am a big fan of our currency. I don’t want other currencies to come out and hurt or degrade the dollar in any way, ”the former President of the United States told Yahoo Finance about Bitcoin. From the statements it is clear that, in their opinion, Bitcoin harbors dangers that could damage the financial system.

Leandro Guini: “Both sides have their advantages”

In El Salvador it looks different. Bitcoin has been the official means of payment here since September 7, 2021. So far, President Nayib Bukele’s experiment seems to be working. The associated Bitcoin wallet from Chivo already has more users than any bank in the country. In addition, El Salvador regularly buys BTC and now owns 1,050 Bitcoins itself. El Salvador would like to use the profits from the crypto currencies to build schools.

Also the executives of the banks in the region do not see the Bitcoin as a danger and believe that they can coexist. At the ninth edition of LaBitConf, Leandro Guini, CEO of red SERFINSA, a digital payment processor for banks in El Salvador, explains that there are advantages on both sides. “You have to understand that there are advantages on both sides, both in banking and in Bitcoin,” said Guini. He sees the acceptance of Bitcoin in El Salvador as a “unique opportunity” in this regard.

In the foreground the implementation of Bitcoin in already existing processes. This is the much more difficult task anyway. “Those of us who adapt disruptive technologies like Bitcoin and other cryptocurrencies to traditional systems have the greatest challenge, because we are building bridges between a new world and one that already exists, and this has its strengths.”

Education and infrastructure are crucial

Other panelists at the conference were Luis Rodriguez from the Central American Bank for Economic Integration (BCIE), Carlos Ruge from DaviPlata (part of the Colombian Davivienda group) and Francisco Montenegro from the Open Bank Project. Rodriguez said that the introduction of Bitcoin in the Central American country led to a great learning curve. Everything was a question of concrete steps, and one of these steps has to do with a clear regulation, such as the Bitcoin law.

“For us it is an initiative that allows us to look to the future and there is a certain interest in the countries of the region in what is happening in El Salvador.” After El Salvador declared in June had wanted to introduce Bitcoin as a means of payment, there has been a wave of speculation about other countries that would also consider Bitcoin as a means of payment.

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Sandra Loyd
Sandra is the Reporter working for World Weekly News. She loves to learn about the latest news from all around the world and share it with our readers.

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