The prophecy has been fulfilled, the DeFi believers saw the first step of the regulation of Bitcoin as legal tender in Latin America materialize. It has been President Nayib Bukele who has promoted the first antecedent of Law for the legal course of a cryptocurrency with the Bitcoin Law in El Salvador.Although the news has divided opinions, it is inevitable to accept that the Bitcoin Law could initiate a domino effect that motivates the rest of the countries to accelerate the process of acceptance of cryptocurrencies as currencies of legal circulation, given that their use has become widespread in almost all the planet.The first step has been taken and at Brickken we bring you the most relevant of the ten general and six transitory provisions of the Bitcoin Law.
We can deduce that it is a simple and concise Law that leaves many unknowns regarding its implementation, however, the preparation, approval and publication of the Regulation of the Bitcoin Law is pending, so it sounds convenient to maintain our reserves of how they will adapt and modify the articles provided in the Law based on its execution.For his part, President Bukele announced that the acquisition of US $ 150 million in bitcoin is expected in order to create the trust stipulated in point 14 of the transitory provisions, where said amount represents no more than 3% of what El Salvador receives annually in remittances.
Given the news of the approval of the Bitcoin Law, public opinion has been divided among those who consider that the bill was a hasty decision that required further discussion, since the volatility of bitcoin would represent a failure for the country's economy, while on the other hand, there are those who describe President Bukele as a brave visionary leader who has put El Salvador in the history of the Blockchain revolution, transforming the economic dynamics of the society we know.
El Salvador is now the Sandbox of the world where we will see if the decision to approve said Law is a success for the economy, achieving the financial inclusion of 70% of its population without access to a bank account or, on the contrary, it is the chronicle of a death announced when implementing a Law in a country where the population is closely rooted in the use of cash and the transactional limitations of bitcoin prevent obtaining the desired goal, since bitcoin was not designed as legal tender.Whatever the result, we will be attentive and closely watching the behavior of the regulation in El Salvador, which regardless of whether it has been hasty or successful in a timely manner, has released the brake on a train that was traveling slowly, accelerating at a slow pace. from which there is no turning back.From Brickken, we take this news with emotion, since it is a quantitative and qualitative leap for the adoption of blockchain technology, not only by individuals and companies, but also by the States themselves. We have no doubt that the acceptance as legal tender of cryptocurrencies will open endless possibilities for the tokenization of assets.If you want to know more about tokenization, we invite you to download our report.