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The situation in El Salvador

 The situation in El Salvador

The situation in El Salvador

  El Salvador, a country in Central America, although it is one of the most densely populated countries, and ranks third among the six countries that make up Central America, this small country has a population of only 6.5 million people.  This is an area that has undergone changes in recent decades, processes that have had a positive impact on society, as it managed to reduce the poverty rate reversed in 2007 by 39 percent to a rate of more than 22 percent in 2019. With this, it is attributed to the fact that the GDP  The total increased by 3 percent between 2000 and 2020, which has led El Salvador to post modest economic growth in recent years.

  Although it was a country that was hit hard by the COVID-19 pandemic, its population, as in the rest of the world, has been significantly affected economically and healthily.  It was one of the countries that adopted containment measures most quickly and efficiently from the first moment, and the government was able to give a strong response in the economy of households and businesses.  However, the epidemic dealt a very strong blow, destabilizing the country's economy, bringing it to poverty levels that had already been exceeded in previous years, reversing everything that had been achieved so far.

  In contrast to this position, El Salvador has adopted mechanisms to achieve high levels again, such as investing in cryptocurrency in casinos, where income from urban employment reduces inequality and rural areas benefit from perceived income through transfers and pensions.

  Frame change

  Likewise, being a region that always seeks to boost its growth and prosperity, today it has managed to turn BITCOIN into legal tender.  It is important to note that BITCOIN is a digital currency, an asset that uses cryptographic cryptography that guarantees and guarantees the denomination and integrity of transactions, making the most of the digital age.

  This country has adopted this mechanism to expand the assets of its state and apply it in its transactions and thus benefit from the benefits it derives globally, in negotiations with other countries without affecting the cost of goods and services, due to the operation and safety that it has shown so far.  Likewise, it reduces the production of physical currency, and simplifies transactions.

  The use of cryptocurrencies brings many advantages, because thanks to this initiative approved by the legislative assembly of the country, the usability of this system and the great potential of the broker are demonstrated.


  Bitcoin Law

The situation in El Salvador

  The head of state, Najib Bukil, posted the news via his Twitter account, which was officially announced at the Bitcoin Conference held in Miami.  He announced this great decision and stated that in the short term it would bring prosperity to its residents, as it is a source from which job opportunities are created.  This will also help provide financial inclusion in the informal economy.

  It's a choice that opens up possibilities, and breaks any restrictions that recent situations have gained.  This law was approved under the name of the Bitcoin Code, according to which all companies are obliged to accept this digital currency as payment to users.  It applies to goods, services and smart investment, as this law is currently in force.

  Prior to its approval, corresponding studies had already been carried out, where it was possible to prove the potential advantages that a cryptocurrency application could bring.  Following this study, President Bukele announced in a tweet that the use of this virtual currency will bring highly guaranteed benefits to the sectors of tourism, investment, economic development, innovation and financial inclusion, among others.



The situation in El Salvador

  El Salvador will now be a point of interest for financial institutions around the world, as well as businessmen and governments, who have been left out of the application of this currency, due to their strong doubts about its lightness.

  However, it is no secret that these entities have interacted with Bitcoin and the cryptocurrency world with great awe.  That is why this small country now but with great aspirations, is taking advantage of the advantages of technology to capitalize on its growth, taking advantage of this system that has come to change the world of classic methods of finance.

  Now this country will not only benefit from this method, but is also expected to provide alternatives for resolving uncertain fluctuations and, based on experience, will contribute to the education of this system, giving users more peace of mind.  In this way, El Salvador becomes the leading country in accepting cryptocurrencies as an official payment method.

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