El Salvador’s commitment to embracing Bitcoin as legal tender continues to make waves in the crypto industry. In a significant development, Saifedean Ammous, the renowned economist and author of “The Bitcoin Standard,” has joined the National Bitcoin Office of El Salvador as an economic advisor. This strategic move highlights the country’s determination to leverage the potential of cryptocurrencies and promote financial innovation. Ammous has shared his insights on El Salvador’s Bitcoin strategy, expressing optimism about the country’s potential for economic growth and debt reduction. This article delves into Ammous’s role, his views on El Salvador’s initiatives, and the broader implications for cryptocurrency adoption.
Ammous’s Vision for El Salvador
In an interview with the local newspaper ‘Diario El Salvador,’ Ammous expressed confidence in El Salvador’s ability to become debt-free within the next five to ten years. He emphasized the country’s immense potential to become a hub of innovation, owing to its progressive policies, including the adoption of a zero tax rate for technology companies. Ammous commended President Nayib Bukele’s initiatives, highlighting their attractiveness compared to nations adopting contrasting cryptocurrency taxation policies. Although not explicitly mentioned, Ammous alluded to recent debates on cryptocurrency taxation in countries such as the United States, the United Kingdom, Portugal, and Italy. El Salvador’s commitment to creating a favorable environment for businesses and entrepreneurs positions it as a leader in the global crypto landscape.
The Role of the National Bitcoin Office
The National Bitcoin Office, established through Decree No. 49, has been pivotal in driving El Salvador’s cryptocurrency strategy. Its formation last year involved collaboration between President Bukele and prominent Bitcoin supporters Stacy Herbert and Max Keiser. The office plays a central role in overseeing cryptocurrency-related matters in the country, ensuring regulatory clarity, and facilitating the integration of Bitcoin into the economy. Ammous’s appointment as an economic advisor adds another layer of expertise to the office, enhancing the President’s decision-making process. Notably, Ammous has volunteered his services without requesting financial compensation, underscoring his commitment to advancing the adoption of cryptocurrencies in El Salvador.
El Salvador’s Pioneering Initiatives
El Salvador has been a trailblazer in its national cryptocurrency strategy. It became the first country to adopt Bitcoin as legal tender in September 2021, signaling a major milestone in the mainstream acceptance of cryptocurrencies. Furthermore, the introduction of innovative Bitcoin bonds last year demonstrated El Salvador’s commitment to harnessing the potential of digital assets to stimulate economic growth. While initial reports on Bitcoin adoption in the country varied, recent trends indicate an upsurge in uptake, fueled in part by increased tourism. El Salvador’s proactive approach to cryptocurrency integration has attracted global attention and positioned the nation as a vanguard of financial innovation.
US Regulatory Developments
The United States, a global powerhouse in finance and technology, has recently witnessed significant regulatory discussions surrounding cryptocurrencies. President Joe Biden’s administration proposed imposing excise taxes on Digital Asset Mining Energy (DAME), which could have subjected cryptocurrency mining companies to a 30% tax. However, as part of the agreement reached on the US debt ceiling, this tax proposal is currently being blocked. The Biden administration argued that such taxes were necessary to address the environmental and social impacts of mining operations. The ongoing debates on cryptocurrency taxation highlight the contrasting approaches countries are taking toward digital assets, further emphasizing the significance of El Salvador’s progressive stance.
Conclusion
Saifedean Ammous’s appointment as an economic advisor to El Salvador’s National Bitcoin Office marks a significant milestone in the country’s journey towards cryptocurrency adoption. His expertise and insights will undoubtedly contribute to shaping the nation’s economic strategies and further solidify its position as a leader in the crypto industry. With Ammous’s guidance, El Salvador is poised to achieve its ambitious goals, including debt reduction and the establishment of an innovative hub for cryptocurrency innovation.
As El Salvador continues to implement its progressive cryptocurrency policies, other nations around the world are closely observing the outcomes. The country’s pioneering initiatives, such as adopting Bitcoin as legal tender and creating a supportive regulatory framework, have attracted attention and sparked conversations about the future of finance. El Salvador’s bold approach serves as an inspiration for countries grappling with the challenges and opportunities presented by digital currencies.
Furthermore, the collaboration between the National Bitcoin Office and Saifedean Ammous underscores the importance of bringing together diverse expertise to drive meaningful change. As cryptocurrencies gain traction and reshape the global financial landscape, the input of renowned economists like Ammous becomes invaluable in navigating the complexities of this evolving ecosystem. To conclude, Saifedean Ammous’s role as an economic advisor to El Salvador’s National Bitcoin Office adds a new dimension to the country’s cryptocurrency journey. With his expertise and insights, coupled with El Salvador’s progressive initiatives, the nation is poised to make significant strides in leveraging the potential of cryptocurrencies for economic growth and financial empowerment. As the global community watches El Salvador’s progress, it is clear that the country’s commitment to innovation and inclusion has the potential to reshape the future of finance.
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Short for decentralized finance, DeFi is a new wave taking over the world’s financial market; the cryptocurrency world. DeFi is the conception that entrepreneurs can provide traditional financial institutions functions through a decentralized medium. There are cryptocurrencies like Bitcoin and Ethereum, the former of which has been causing significant ripples in the crypto-world since the last quarter of 2020 and the beginning of this year.
Although Bitcoin and Ethereum are the forerunners of DeFi, newer and somewhat better altcoins are coming into view. An example is Dai, a bitcoin-resembling digital token that hopes to remain independent of the world’s central banks’ influence. Unlike centralized finance and traditional banks, DeFi takes away all the cumbersome operations, go-betweens, and high costs often involved. This it does via smart contracts and to the benefit of the end-user. The closure of many industries during this era of the COVID-19 pandemic has served as a wake-up call to consumers of fiat currencies on the futility and loss of value of such coins.
This wake-up call has been occurring in places where the government has been pumping more money into their economies even though they have taxes to be paid. Such practices make the value of such currencies questionable. As a result of such act, fiat currencies’ values have been seen to fluctuate and fall considerably, often leading to inflation. An example is in Venezuela’s economy where inflation has risen by more than 1,000,000% due to the influx and pumping of more bills into the economy.
Often, the influx of newly minted bills into the economy does not mean these bills will get to such currencies’ end-users. These often serve as injections into the banking sector. But when they come as benefit checks and government aids, this inflation in money supply results in taxes. Also, they help boost the stock market and the stocks of the top 1%, rather than help the thousands and millions of individuals and businesses that need such aids.
The increasing dissatisfaction and discontent with traditional banks and centralized financial systems are momentous. The high availability of information about the growing offers in the crypto sector is finally providing people with better alternatives to traditional banks. These alternatives come in the form of DeFi (decentralized finance) where people can now take part in a mode of operation that will work for them. This means that people’s money will now work for them instead of the other way round.
Investing in the cryptocurrency market is becoming more comfortable and more widespread than when it first emerged with Bitcoin as its forerunner. As the first DeFi system, this paved the way for other altcoins, including Ethereum, Tether, Polkadot, XRP, and Cardano. These cryptocurrencies have come a long way and have become potential collaterals when taking out traditional bank loans. These loans can be collected regardless of what your credit score is. They serve as a way of getting cash when you need it irrespective of the availability of physical collateral.
The influence of cryptocurrency is rising steadily in developing countries where inflations often caused by government policies and central bank cash injections result in the loss of value of people’s savings and business capitals. Buying and investing in DeFi systems has provided a remedy to that, whereby the value of fiat currencies that have been converted to cryptocurrencies experience growth and provide means of decentralized financial transactions with relatively low costs from traditional banks.
The opportunities created by cryptos seem even better in developed countries. Large amounts of money are readily available and can be invested in trusted cryptosystems where stable profit and immense gain are assured. This steady return has been made evident in Bitcoin and Bitcoin price prediction, which has been steadily increasing more than fiat currencies. Its independence from centralized financial systems has served as a contributing factor rather than a deterring factor.
Amidst the use of DeFi systems by individuals and some businesses, there is a need to increase its development and efficiency to encourage its adoption by institutions. Through this, the DeFi industry will rise from the position now as a Billion-dollar transaction pathway to a trillion-dollar one, where the costs of transactions go down while profits and investment increase. This aim of getting institutions into the DeFi industry is already in motion. Individuals and groups are coming together to develop decentralized financial apps that are better and more decentralized than their forerunner. Such a better DeFi system could come in the form of large and small security circles where a single user cannot overturn the currency’s stability, and a central body cannot determine a price change.
With this growth in the use of DeFi systems and the coming in of institutions into the crypto market, real-world assets can be brought into the blockchain, which will help and promote the growth of DeFi. This would include transferring trillions of fiat currencies and precious stones such as gold or silver onto the blockchain. And their movement can be done at the cost of no more than a nickel and no intermediary fees and liquidity limits. With DeFi as an alternative to centralized financial systems, governments will have little to no control over the wealth that cannot be generated by individuals that make use of the system.
With the growth of decentralized financial systems in the last two decades, the move from fiat currencies to cryptocurrencies seems irreversible. And that’s a good thing since, through DeFi systems, the distribution of wealth among crypto-users can be regularized and stabilized. This would ensure equal wealth distribution on the platform, which can only be influenced by cryptocurrency owners when they invest more fiat currency into the platform.
BIO John Edwards
John Edwards is a writing specialist who works at The Writing Judge. He is looking for ways of self-development in the field of writing and blogging. New horizons in his beloved business always attract with their varieties of opportunities. Therefore, it is so important for him to do the writing.
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The world’s financial institutions are currently observing a vast digital ecosystem being expanded with reports for new digital currencies akin to the likes of cryptocurrencies to be launched soon. While these CBDCs (central bank digital currencies) are proclaimed not to harm or replace cash and other forms of legal tenders, we cannot help but talk about the ones instigating the change.
Cryptocurrency became popular since the launch of Bitcoin back in Jan 3rd, 2009. Ever since then, cryptocurrencies have seen a rise in popularity amongst the masses.
According to a recent study by Tech Jury, the cryptocurrency market cap has reached $265.545 billion as of May 2020. By 2023, the global blockchain market is expected to reach $23.3 billion. Furthermore, Bitcoin alone accounts for $6 billion of daily online transactions.
Moreover, cryptocurrency users have exceeded 40 million globally. In light, of this information, let’s take a quick look at how Millennials compare to Generation X when it comes to adopting cryptocurrencies.
Generation X is widely regarded as the generation that followed Baby Boomers and preceded Millennials. Their age groups range from 40 to 55 years old as of 2020. Here is how Generation X is reacting towards cryptocurrency:
While Millennials are regarded as the prime suspects for capitalizing on the crypto market, surprisingly both Baby Boomers and Gen X are being currently observed to closely follow the trends.
Hence in recent years, many sources have cited an increase in investment of cryptocurrency as both Boomers and Generation X take charge to close the gap. In some cases, they were also found to have more than doubled their investments.
It seems like the word of mouth and awareness about cryptocurrency is spreading like wildfire as Generation X is seen to understand the value and find blockchain as a reliable security measure. Understanding the benefits of fast and instantaneous transactions, the group of disaffected people and entrepreneurs is already showing signs of crypto is affecting their thinking for the future.
Reports are coming in, showing an evident increase and Month on Month growth patterns. According to a study by Mode Banking, both Baby Boomers and Gen-X have shown a trend of increasing their investment in cryptocurrency by over 100%, especially during the COVID-19 pandemic.
With the current economy ridiculed by the pandemic, the growing fear for wealth protection has led Baby Boomers and those belonging from Gen-X to invest in resources that can allow for asset diversification. Cryptocurrency so far has been observed as the most favorable type of investment to safeguard personal wealth.
Otherwise known as Millennials, Generation Y is widely regarded as the generation succeeding Gen-X and Baby Boomers. Their age groups range from 24 to 39 years of age. Often regarded as the parents of Generation Alpha (like my darling son!) they were born into a world that as quickly becoming familiarized with the internet, mobile devices, and social media.
Millennials view of cryptocurrency is that of an alternative asset. Surprisingly not many of us want to invest in stocks and are more interested in assets that are backed by technologies. According to a recent study by Coin Telegraph, Millennials are three times more likely to invest in cryptocurrency as compared to Generation X. Furthermore, 9% of Millennials chose crypto as their long-term investment option.
Students applying for and seeking dissertation assistance are also looking for ways to invest alternative asset that can help secure their personal wealth for the future. It is important to note here that while both real estate and stocks are also good options for Millennials, they are currently dominated by Baby Boomers in the present times.
Studies from different financial institutions and digital currency markets are coming in showcasing Millennials as a driving force for the adoption of Bitcoin for years to come. Zac Prince, the CEO and founder of BlockFi, identifies a major trend for Millennials where they seek everything digital.
Furthermore, with Bitcoin reaching its all-time high and pushing over $23,000 per coin as of Dec 17, 2020, who can blame Millennials for making the right choice so far!
There is a Japanese idiom that states the next generation as the actual king of the world. Come to think of it this world will always belong to the next generation that is how our life expectancy is all about. We may get to live 100 years, but eventually, the circle of life catches up to us. As we depart, the new generation takes to the throne.
For countless eras, this is how wealth has been passed down from old to the young. Currently, Millennials are in the process to take control and eventually move Boomers out to take their seat on the ruling chair. This transfer of power and wealth on a massive scale will indefinitely cause investment in cryptocurrency to rise by a tremendous rate.
Cryptocurrency is on the rise with Bitcoin riding the tidal wave in recent times. Not only digital assets and crypto are skyrocketing, but even the BIS (Bank of International Settlements) is also considering launching digital currencies with the help of IMF and 60 central bank members.
Someone really has to be blind enough to not see how things are rapidly changing and converging towards digital resilience. So far Millennials and Gen-X have shown their growing interest in adopting cryptocurrencies with Boomers lagging behind to catch up on the trend.
Samantha Kaylee currently works as an Assistant Editor at Crowd Writer. This is where higher education students can acquire literature review writing service UK from professionals specializing in their field of study. During her free time, she likes to catch up on all the latest tech developments happening across the globe.
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As explained by a major IT agency for the European Union, financial companies should be careful to blockchain cybersecurity issues if they want to implement the blockchain.
The European Union Agency for Network and Information Security (ENISA), in fact, published a new report on the distributed ledger, highlighting the security issues that large companies might experience if they decide to adopt blockchain tech.
Key management, data privacy and smart contracts are some of the most important topics discussed in the ENISA report.
This is the first time the agency, created back in 2004, published a report on the technology. Last year, ENISA published a glossary on its official website.
On the page there was an overview of blockchain, saying “it is too soon to tell whether blockchain will live up to its promise”.
According to this newest report, financial businesses should give high attention to security issues.
Udo Helmbrecht, executive director of ENISA, explained in an official statement:
“Cybersecurity should be considered as a key element in the blockchain implementation by financial institutions.”
Code review and mechanisms for accessing to distributed networks should be important, commented the report. Also it highlights that banks and financial institutions should think about the blockchain cybersecurity challenges of handling digital asset wallets.
Click on the link below to read the full copy of the report:
WP2016 3-1 4 Blockchain Security by CoinDesk.
Open your free digital wallet here to store your cryptocurrencies in a safe place.
Open your free digital wallet here to store your cryptocurrencies in a safe place.
Open your free digital wallet here to store your cryptocurrencies in a safe place.
Open your free digital wallet here to store your cryptocurrencies in a safe place.
Bitcoin is a private currency, that isn’t issued by any central bank nor guaranteed by any institution. It is electronically transferrable in a practically instant way, utilising a cryptographic security protocol. It is based on a completely decentralized network: the transactions don’t require a middleman, cannot be censored, don’t have any kind of geographical or amount restriction, and are possible 24 hours a day every day and are substantially free.
Open your free digital wallet here to store your cryptocurrencies in a safe place.
Open your free digital wallet here to store your cryptocurrencies in a safe place.
Open your free digital wallet here to store your cryptocurrencies in a safe place.