El Bitcoinado - The Context S04E01

When European explorers were conquering the South American continent, they were looking for the mythical city of El Dorado. Now “El Bitcoinado” is going to be the real opportunity for a new kind of economic revolution after El Salvador approved legislation to adopt Bitcoin as legal tender. This will come into force 90 days after the signing of the legislation. and during this period there will be a lot of analysis of what are the implications, whether it is a momentous change in economic policy, not only for the country, but potentially representing a domino effect, or it is going to be just an experiment that will fizzle out.

El Salvador already belongs, before this recent decision, to a small set of countries that do not have a sovereign currency of their own. The economy of El Salvador went through what is called dollarization; it adopted the United States dollar as its own legal tender.

Regardless of whether 90 days is enough, or 180 days are going to be needed before all the wrinkles are ironed out, the experiment in El Salvador is very important. Other countries will definitely look at it, and this will hugely influence, and I expect to benefit the Bitcoin ecosystem on a worldwide basis. There will be other countries that will do the same and adopt Bitcoin as legal tender.