MADE IN CANVA
El Salvador has not only been successful in legalizing Bitcoin but also in revolutionizing the traditional mining of cryptocurrencies. Although it has not received support from the World Bank, Bitcoin enthusiasts have lent their assistance to continue this undertaking.
World Bank not on board with El Salvador’s decision!
Adopting any currency, let alone Bitcoin can be quite challenging to a small country like El Salvador, which is why assistance was requested from the World Bank. However, El Salvador’s brave decision to be the first country to recognize Bitcoin as a valid currency and use it as payment for any kind of debt has not been supported by the World Bank. The reason behind this is the concern about sustainable energy usage and Bitcoin circumventing regulation due to its decentralized nature. This is nothing new to people who have been listening to politicians and major institutions harping on the same point without citing appropriate data to back up their claims. The institution is not interested in making new changes to benefit the economy but to continue to enforce the same rules.
Although, this has not hindered the enthusiasm of Bitcoin enthusiasts to lend their assistance in any way possible. Jack Mallers, founder of Strike, a payment app that is based on the Lightning Network has been supporting El Salvador’s bold decision since March to help this new venture progress smoothly. Strike has been a blessing for people in every corner of the country, allowing them to make payments efficiently. Financial inclusion is something most developing countries have to face with, and Strike has been a strong proponent of it. This has motivated rural people to participate in using Bitcoin for day-to-day usage.
There are valid concerns about El Salvador’s financial condition and the amount of debt it owns, which can end up terribly for the country, assuming it all goes downhill. The Bitcoin miner migration has created a lot of doubt in people’s minds about its potential, which has impacted people’s confidence in the currency to help the nosediving economy. The risk that it is taking can also help with its existing problems or create new ones, we will just have to wait and see.
Transforming the Bitcoin Mining Industry!
Nayib Bukele’s (President of El Salvador) quick decision to establish a geothermal mining facility that is powered by a Volcano has got everyone hyped about the future of Bitcoin in El Salvador. It has already begun to work with a geothermal energy company that has already dug a new well that will eventually become a mining hub. This is in sheer contrast to China’s coal-powered mining that occurs on a bigger scale.
This invalidates the sustainable energy debate along with other energy-intensive mining concerns. There are already hydro-powered mining facilities in the US that cover a good portion of the sustainable mining that takes place while also bringing into question alternative energy sources that may have not been considered previously. Although there is very limited information on the logistics of how this technology is going to be developed, in theory, it could certainly work, given appropriate time of course.
PUBLISHED BY
DWAYNE D’CUNHA, WRITER ON MEDIUM.
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An Update on El Salvador’s Official Currency! was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.