On Sunday (2 January 2022), Salvadoran President Nayib Bukele provided his 2022 forecasts for Bitcoin.
As you might keep in mind, the expense to make Bitcoin legal tender in El Salvador got gone by the Legislative Assembly on June 9 and the Bitcoin Law ended up being efficient on 7 September 2021.
On 24 June 2021, President Bukele revealed throughout a nationwide address that the Bitcoin Law will end up being efficient on 7 September 7 2021.
Here are a couple of highlights from thatspeech (as reported by “La Prensa Gráfica”, which is among the nation’s most popular everyday papers):
- The English translation of Article 7 of the Bitcoin Law states: “Every economic agent must accept bitcoin as payment when offered to him by whoever acquires a good or service.” However, the president stated guaranteed individuals of El Salvador that“nobody has to receive bitcoins if they don’t want them”
- Pensions and wages will continue to be paid in U.S. dollars.
- Bank account balances will stay in U.S. dollars (i.e. not get transformed to Bitcoin).
- The president mentioned that Article 7 of the Bitcoin law that those who do not have the innovation to accept Bitcoin do not need to accept it. The English translation of Article 7 states: “Those who, by evident and notorious fact, do not have access to the technologies that allow them to carry out transactions in bitcoin are excluded from the obligation expressed in Art. 7 of this law. The State will promote the necessary training and mechanisms so that the population can access bitcoin transactions.”
- The federal government is constructing an electronic wallet called “Chivo” that will have the ability to hold both USD and BTC. This mobile app will be readily available for downloading from the iOS and Android app shops from September 7. Any El Salvador person who signs up the wallet (which will need entering their Unique Identity Document number and telephone number, in addition to sending to a face scan) can get $30 worth of Bitcoin from the federal government (however it appears that they can select to pull out and get this quantity in USD rather). The president stated that “those 30 dollars are to promote the use of bitcoin and to encourage people to download the App”.
- The Chivo wallet will permit withdrawals at ATMs.
- The Development Bank of El Salvador (Bandesal) will ensure automated convertibility, which implies that companies that make money in BTC can select to get USD.
Then, on 28 June 2021,
Aclarando la desinformación que están tratando de esparcir acerca de la #LeyBitcoin:
1. La wallet del Gobierno solo es una de tantas wallets que se pueden usar.
2. La @chivowallet será totalmente suitable con otras wallets.
— Nayib Bukele (@nayibbukele) June 28, 2021
These were the primary highlights:
- The Chivo wallet is “only one of many wallets that can be used” and will be “fully compatible with other wallets.”
- “The personal data requested by the wallet is already held by the Government.”
- “The use of the Chivo wallet will have no cost, there will be no commissions to send or receive remittances, or to make or receive payments, or to convert bitcoin to dollars or vice versa. No commission will be charged to merchants, as credit cards do. No commission will be charged to merchants…”
- “The money that is held or received (in dollars or bitcoin) in the Chivo wallet… can be withdrawn in cash (in dollars) at any time you want. It can be done at the physical branches … and at Chivo ATMs. This will have NO commission.”
- “There will be more than 200 Chivo points (between ATMs and branches) in historic centers and shopping centers… You can also make deposits, purchase of bitcoin and other services…”
As Cointelegraph reported earlier today, “since legalization, the president acquired 1,370 BTC for the country’s reserve and reinvested its unrealized gains into new infrastructure projects including a hospital and a school.”
Well, late the other day (El salvador time), President Bukele required to Twitter to provide his Bitcoin- associated forecasts for 2022.
2022 forecasts on #Bitcoin:
•Will reach $100k
• 2 more nations will embrace it as legal tender
•Will end up being a significant electoral concern in United States elections this year
•Bitcoin City will start building and construction
•Volcano bonds will be oversubscribed
•Huge surprise at @TheBitcoinCo nf
— Nayib Bukele (@nayibbukele) January 2, 2022
Let’s take a glance at a few of his forecasts:
Bitcoin rate reaches $100K. He is not alone in thinking this. On 24 December 2021, Thomas Lee, Co-Founder, Managing Partner and the Head of Research at independent research study shop Fundstrat Global Advisors, stated throughout trading education company Market Rebellion‘s roundtable event that he could see Bitcoin “easily getting to $100,000.”
Other countries are going to make Bitcoin legal tender. It’ s unclear which nations he is thinking of, however if this prtediction holds true, it is probably to occur in a nation with a weak ecnonomy, probably one in Central America.
Bitcoin City According to a report by Reuters, on 20 November 2021, President Bukele revealed at the end of the Bitcoin Week conference in El Salvador that his country wishes to construct the world’s very first “Bitcoin City” (in the start, this will be moneyed by Bitcoin- backed bonds) in the eastern area of La Uni ón, which this city would be powered by a neighboring volcano (which is called Conchagua) and homeowners there would not have any taxes aside from worth included tax (VAT) to stress over.
He supposedly stated:
“Invest here and make all the money you want… This is a fully ecological city that works and is energized by a volcano.“
Bitcoin 2022 Conference. As you may remember, it was on 5 June 2021 that Zap Solutions (a Bitcoin payments startup that uses the Lightning Network) Founder and CEO Jack Mallers — who helped with drafting El Salvador’s Bitcoin bill — announced at Miami’s Bitcoin 2021 conference that the small Central American nation was planning to make Bitcoin legal tender (alongside the U.S. dollar).
During his talk, an emotional Mallers presented a recorded video message from President Bukele and read out a small passage from the proposed bill.
Mallers went on to say that his firm would be opening an innovations centre in El Salvador with the help of Blockstream.
It is hard to imagine what surprise(s) the Bitcoin 2022 Conference will deliver, but is not inconcievable that a small Latin American or African nation could follow El Salvador’s lead and also adopt Bitcoin as legal tender.
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.
Photo by “Donbrandon” through Pixabay