There has not been any good news about Bitcoin for a long time. So, it was refreshing to see El Salvador’s BTC announcement, but the market didn’t react as expected. There was hardly any reciprocation, and the prices didn’t climb as we speculated. It is not small news in any way and can also be coined as the “largest BTC announcements ever.” We all wanted Bitcoin to be recognized as a legal tender in the country, and El Salvador’s president made that happen.
El Salvador’s BTC announcement
— Nayib Bukele 🇸🇻 (@nayibbukele) June 5, 2021
Most citizens of the country do not have a bank account, and that means Bitcoin will give them access to have their money stored, preserve its value, send it to other places and obviously purchase things. The announcements were also shared by the Bitcoin wallet app Strike. Even though all notable personalities and many individuals are considering it to be a big announcement, the market didn’t move a hair due to the same.
And now there are even many problems coming up due to these recent announcements. Caitlin Long shared if Bitcoin does become law, then it could have many secondary effects which are not what we want. Even though many are happy about this, we still don’t know the exact consequence of making Bitcoin a legal tender. Caitlin also said that it could become a back door for the banks to control BTC.
The problem with Strike
Bitcoin is supposed to bring freedom to the masses and let them be free from the centralized financial system. But even though El Salvador is making BTC a legal tender, the Strike app in the country has some serious issues. A Twitter user pointed that the app is not permissionless and custodial, which means they can block the account and funds anytime they wanted. But at the same time, it means that the app is trustable as the government will monitor it, and users can be more or less sure their funds are safe.
The strike will bring 70% of citizens of the country without bank accounts access to banking services. This is something everyone should have access to grow the country’s economy. And also let the citizens save and invest their money.
What are your thoughts on the negligible market movement after the announcement of El Salvador? And do you think this is a good move for Bitcoin? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.