Bitcoin is no longer legal tender in El Salvador
Discussion
tether only
1) What?
Ouch. Really?
BIG SAD, IF TRUE 😢
tell me you made a deal with the IMF without telling me
It is not really optional to say no to IMF. https://www.goodreads.com/book/show/61193086-confessions-of-an-economic-hit-man
An essential read this one.
fix the money, fix the world is what brought me to bitcoin. We can make the IMF obsolete.
Tick, tock, next block.
merchants not being obligated to accept bitcoin doesn’t mean it’s not legal tender
it doesn't mean it's not **usable** tender, I think you meant.
i see your point, but when it comes to the el salvador government, they’ll still accept your bitcoin. however, for merchants, it’s on a voluntary basis
Their govt is still buying btc. But banning their people from using as legal tender. Seems like they just stole their own people’s btc. Since they all used that govt wallet
Legal tender is not a free market idea. May the best money win. Forcing people to accept Bitcoin is not the way.
Agreed.
When you trust the state and politicians
But don't worry guys I'm sure Trump is serious about Bitcoin lol
Maybe its for the best
😬😬😬
😱😱😱😭😭😭
It doesn’t HAVE to be a legal tender. We will still be using it.
Easy come easy go I guess...
They all bend the knee to the #IMF...
HFSP
I call this a win for Bitcoin.
Why?
Because Bitcoin empower the individual and not the state.
Every time I hear people talking about "X country will declare Bitcoin as legal tender..." I just laugh. They have no idea what is legal tender.
Bitcoin CANNOT be legal tender! To be legal tender it means to be endless DEBT.
Bitcoin is to empower the sovereign individual and not the states!
Let's stop this crap bullshit with "make Bitcoin legal tender" ! Is a total fallacy! Instead, focus on empowering individuals using Bitcoin every fucking day without any gov permission.
What is a "legal tender"?
A “tender” is the name given to a small boat that “tends” to the needs of a larger ship, usually by transporting people or supplies from shore or another ship.
With the word legal referring to a contract, the term “legal tender” means to “tend” to a debt sometime in the future, by way of contract.
Meaning, by using legal tender the debt is never paid, as the “small boat” never left the “shore” to deliver the “money”.
These are contracts (legal tender):
Any retailer or individual could refuse to use a legal tender. Nobody can force you to use it. Why? What is the point of a legal tender then?
The point is that you cannot force a retailer to accept legal tender or indeed any other form of tender. If, however, you buy something from them and there is no contractual barrier to the use of any form of tender, and you offer legal tender in payment, and they refuse it, then they cannot enforce the debt in court.
That's what legal tender means: it's about discharging debts. If you incur a debt you can discharge it with legal tender, but you cannot be forced to incur the debt in the first place, if you see what I mean...
Solid signal this… World class!!
My test levels jumped reading this. Good stuff!
SECONDED 🖐️
"Let's stop this crap bullshit with "make Bitcoin legal tender" ! Is a total fallacy! Instead, focus on empowering individuals using Bitcoin every fucking day without any gov permission"
This is the way
We need no nonsense clarification like this
Darth is an OG
Solid take. 👏
They complied to IMF for the loan. It's a win once they exit the fiat loan for bitcoin.
Ok but when is declared legal tender, such as in El Salvador it doesn't pay taxes.
So users stop being criminalized for tax evasion. And innocent people not being criminalized is good for everyone.
I wonder what Max Kaiser will make out of this ..
Stacey lied to me on X, so expect more of that
Bitcoin adoption doesn’t need legal tender laws. These are only good for fiat. People will voluntarily pick the harder money. It might take longer but people will.
This is the only correct take
GA 🔍 🇧🇷
Legal tender laws are statist bullshit
I don't believe this to be the case. These seem like manipulated Western headline news? I am hearing a very different story out of El Salvador. They merely made it voluntary for institutions to choose BTC or Fiat. I am not there so I don't know for sure, but I listened to Max K talk on this subject recently.
Remember guys legal tender simply means it must be accepted by the courts and the government for taxes etc.
Private enterprise is still free to trade in whatever currency it likes. This law never meant ES companies had to accept BTC and the lack of it doesn't mean they can't anymore.
Definitely doesn't mean they can't continue the volcano mines and keep increasing BTC reserves either. They absolutely can.
Shame that the IMF mafia fucked with a sovereign nation though.
So no one obligated to take bitcoin, legally used in transactions and private contracts and people have to pay taxes in fiat. Ergo those who learn bitcoin can use and save and then convert if needed to pay taxes and there’s no tax implication or other bullshit? Seems a great way for people to learn long term value. When I was there, hardly anyone took it anyway. This essentially changes nothing much other than people can’t pay taxes in bitcoin or am I missing something?
they bent the knee
wtf why
It never should have been legal tender in the first place. It's too forceful, even if it's for their own good. Only voluntary usage is the way to go.
It's not a dramatic change. I wish all countries had the amended version.
Never was
Isn't this old news?
This was the condition El Salvador needed to accept in order to secure an extremely low interest loan from the US, loan that El Salvador spent entirely to increase its bitcoin reserves.
From what i gathered, it wasn’t enforced anyway.
Only inferior monies need legal tender laws. There is no need to force the hardest one on people.
Guess he can't call himself the bitcoin president anymore??
So now we can go back to saying that nobody is *forced* to take bitcoin. I'm okay with that. And they're taking the IMF's money and pumping it into bitcoin. Sounds good.
Can't pay taxes with it then it's not legal tender
"legal tender" is a hammer where the government makes it a legal requirement to accept a currency for contract settlement, or for goods and services.
Fiat requires "legal tender" designation because it is worthless paper.
Bitcoin does not need "legal tender" because it is "real money" and in a free society people should be free to accept it or not. If bitcoin is a better money, people will prefer it, or suffer.
Eventually people will only accept fiat when they are forced to because of legal tender laws. They will preferentially trade for hard assets or barter or "favors".
At some point, they will choose to not comply and refuse transacting in fiat. At that point the currency gets reset. This has happened 4 or 5 times in past 50 years in Argentina for instance.
Where are the idol followers? 👀
Did they hide in their burrow? 😂
More to come..
SHUM 😎
Yet they are buying more than ever.
Booooooooooo
Tick Tock!! Then they fight!!! 1BTC will equal 1 BTC
what? I can't believe 😯
Nuke them I guess
It’s been 3 years since the Legal Tender law, and Bitcoin still has almost zero presence in El Salvador. I’ve been three times, in ‘21, ‘22, and this year; the adoption amongst citizens and businesses is worse today than it was in ‘22. Bukele didn’t really give up anything imo, Salvadoran people sort of quiet quit on the legal tender law
Good
Good. The idea is, people can use Bitcoin whether it is deemed legal or illegal by tHe StAtE. This was never up for debate
Also, legal tender laws are an attack vector
Hmmm … just after Trump's call 👀👀.
🥲 our hope rests in Suriname now.
As a medium of exchange, adoption is very low, and not just in El Salvador, but everywhere, including on Nostr
I would zap you, but you said it´s not a medium if exchange here. So i can´t
😂 I said it's very low too on Nostr, not that it's not used as a medium of exchange. Always ready🔥
It appears states and countries want a strategic #Bitcoin reserve
Reading the law there's no much change, only thing is you cannot pay taxes with the coin
As I understand it, Bitcoin still remains a legal means of exchange but not as official money in the country - voluntary rather than compulsory.
That's how I understand it as well
Who cares about legal tender🤷♂️😂
legal tender is more important than the government having a reserve IMO. protecting Bitcoin as cash as opposed to treating it like property and removing cap gains taxes will be hugely important
Maybe El Salvador has the US strategic reserve already bought and paid for.
🥲
they did too much too soon without educating the public first - same as alpaca socks for bitcoin in 2012, it was more of a gimmick. bitcoin will be eventually accepted by necessity, not by government decree.
Bukele failed his people as a economist, he spent to fast to much money on debt and now he accepted a deal with the devil the #IMF!! It is not about Bitcoin and the reserves they are developing great but he did not have enough for the amount of reckless spending.
Learn the basics from Milei and the Austrian economists Mr. Bukele !!
Here is the background:
https://www.bbc.com/news/articles/c20e3l3xllwo
"El Salvador has struck a $1.4bn (£1.1bn) loan deal with the International Monetary Fund (IMF) after agreeing to scale back its controversial bitcoin policies.
The global lender said risks related to the adoption of the world's largest cryptocurrency had eased now that businesses will be allowed to decide whether or not to accept bitcoin.
In 2021, El Salvador became the first country in the world to make bitcoin legal tender.
This week, the cryptocurrency briefly hit a fresh record high of more than $108,000.
"The potential risks of the Bitcoin project will be diminished significantly in line with Fund policies," the IMF announcement said.
"Legal reforms will make acceptance of Bitcoin by the private sector voluntary. For the public sector, engagement in Bitcoin-related economic activities and transactions in and purchases of Bitcoin will be confined."
The deal, which is aimed to help support El Salvador's economy, still needs to approved by the IMF's executive board.
The IMF had opposed the Salvadorean President Nayib Bukele's crypto-friendly policies, warning they could become an obstacle to it offering financial assistance.
Still, Bukele celebrated on social media as bitcoin rallied after Donald Trump's US election victory in November.
..."
Relax. He's basically doing what Saylor did/does at the Nation State level.
You realize he bought a bunch of Bitcoin right after the loan was approved, right? Don't jump to conclusions. This is all going to play out beautifully.
IMF loans comes with strings attached and they will not be ok with buying more Bitcoin with it.
We should examine how or why the IMF is present in El Salvador ?
Economic Hit Men Remember!!!
I live here and don't see enough integration between Bitcoiners and locals
I don't see enough Bitcoin First businesses except for Fintech and education
If we want a true circular economy then we must create all the businesses involved ourselves in it
If you believe in the Bitcoin mission and are prepared to go for it which means hold it all the to $0 then get a loan against your stack and build the businesses
We don't need any more Digital Nomads with YouTube channels coming here to earn a living off promoting El Salvador and making money off you from earning referrals bonus or feeding you into their Network that over charges in the name of Bitcoin
Phase 2 must now start
We must do it ourselves not try bend the minds of those here into Bitcoinism
It's not up to the locals
We must be the Light
So let's be the Light
It's up to us !!!!!
Agreed
Bummer.
I don’t mind the idea of BTC being voluntary opt-in but I’m sure there’s more to their deal id disagree with also.
Yes, you can no longer force someone to accept your bitcoin.
They have to want it.
If they don't want my bitcoin, then I don't want to force it on anyone.
isnt this old news ?
i mean you can still use it
its not forbidden !
I hate that you spread this pseudo misinformation this way.
While it's true that Bitcoin is not an official currency in El Salvador - everyone can still use it the SAME has last week, or last year. NOTHING has changed.
The adoption rate in El Salvador, or anywhere else will continue with or without the Government.
Sit tight. Let it play out. All is good!
I am having no trouble spending the corn here for merchants who take it :bitcoin: