Many doubts and criticisms were directed at Salvadoran President Nayib Bukele.
Some people claimed that he influenced the legislature to pass the change. Other critical financial analysts even predicted a negative influence on the country’s economic situation after their actions.
The country completed the switch and is now using Bitcoin for financial transactions. Furthermore, the president continues to accumulate Bitcoin whenever there is a drop in price.
The second country that can take such a bold move is Zimbabwe. They are researching the growth and risks associated with cryptocurrency as an asset.
Will Zimbabwe become the next El Salvador?
For now, the country is analyzing the rate of demand among citizens. In addition, they support regulations that financial regulators have been insisting on for some time. Furthermore, Zimbabwe sees cryptocurrency as a way to further develop the country.
Now that many citizens are demanding cryptocurrency, the government is seriously considering the option. They released this information through one of their local news outlets.
The news also revealed that the country is already discussing the use of Bitcoin as a legal currency – the Perm Surveillance Brig. Colonel Charles Wekwete confirmed this information. He also stated that the Blockchain offers both pluses and minuses.
The negatives he highlighted were money laundering, illegal international transfers, facilitating illegal actions with illegal cash flows, etc.
However, because of these risks associated with the Blockchain, many authorities are ready to develop regulations that could restrict them. In addition, the rules will protect consumers’ interests and protect Zimbabwe’s financial future.
For now, the country has not declared anything. They are simply consulting experts to see if the change will work. But the government is following National Development Strategy 1, which teaches the digital economic system.
The strategy will promote a connection between existing businesses and government to jointly develop the digital economy.
El Salvador sets the pace for Bitcoin
Since Nayib took a bold step amid criticism, other countries have considered the use of Bitcoin in their economy.
Many negative comments about the move, and some are still ongoing. However, the first country to adopt Bitcoin doesn’t seem to be backing down.
In recent news, the president is touting plans to build a hospital and 20 schools using his Bitcoin earnings.
With all this, industry participants see Africa as a good ground to test cryptocurrency. In addition, the crypto market in Africa continues to grow, according to Blockchain Chainalysis company.
Source: News Bitcoin