Electricity…El Salvador is unlikely to become a leader in sovereign adoption of Bitcoin as its national currency

power ups… It is the monthly opinion column of Marc Powers. For most of his 40-year legal career, he has dealt with complex securities-related cases after working with the US Securities and Exchange Commission. He is now an adjunct professor at the Florida International University School of Law, where he teaches a course on “Blockchain, Encryption, and Regulatory Considerations.”

When attending Miami Bitcoin 2021 Conference Two weeks ago, there were several things that made me feel interesting and important. Although many others have reported on the conference, my focus will be on some comments or events that I think are important in the field of cryptocurrency and blockchain.

First, the conference is full of church-like believers, or those who are curious about crypto and Bitcoin (Bitcoin).The Mayor of Miami, Francis Suarez, kicked off the celebrations in a grand manner and pointed out that Miami was the first in the United States local The 2008 Bitcoin white paper on its government website. As a transplanted New Yorker who now uses Miami as his home and teaches blockchain law to law students there, this makes me proud.

When the host asked how many viewers had attended this particular Bitcoin conference in previous years, many of the 12,000 viewers raised their hands. These participants are long-term holders, developers, investors and entrepreneurs. They have a strong tendency towards liberalism, as evidenced by the warmly welcomed keynote speech of former Texas Senator Ron Paul, who said that “authoritarians” are managing our government and the Federal Reserve. , And deprived us of our freedom and rights. Wow! I didn’t realize that Paul had become so radical, or already so.

Chief Executive Officer of Micro Strategy Michael Sayler Said Bitcoin is the vitality of the world. Founder of Draper Fisher Jurvetson Tim Draper The commentary said that Bitcoin stands for “freedom and trust.” I like Winklevosses. They use the metaphor of “Bitcoin is the software of gold hardware” and by declaring that the US dollar is “Biggest shit coin. ”CEO of Twitter Jack Dorsey Rationalized “Internet needs local currency. “

It’s also worth noting that who is Is not Attendees: It can be said to be “litigation” and “non-believers”. According to Satoshi Nakamoto, financial intermediaries, capitalists and their minions that will be marginalized or eliminated are the real promise and main purpose of blockchain. The absentees include traditional commercial banks and commercial banks, venture capital and private equity companies, traditional investment banks and hedge funds, as well as companies and professionals who help them catch up, such as law firms and accounting firms—or help them find Create a way to “own” the blockchain through a permissioned blockchain, thereby “owning” consumers and the public.

For me, I find this very refreshing. It feels like the exciting show I participated in in 2018, when these absent players called Bitcoin a scam or fraud and were ecstatic about the price plummet that year. Although not everyone in 2018 understands the rules of the road or the best way to achieve mass adoption, they have sincerity, deep friendship, and passion for hard work and speakers-understand that a large part of BTC can be created without a bank account This unfettered financial system can benefit the world economically and politically. They realize that rampant inflation is insidiously and quietly devaluing citizens’ assets. As Charles Cascarilla, the co-founder and CEO of Paxos, said on Bitcoin 2021, Bitcoin is not only a good idea, but also a legitimate idea to replace the financial system.

Encryption is legal

What is also interesting to me is the lack of discussions on the legality of cryptocurrency as an investment in conferences and elsewhere today. Back that day, I remember sitting on a group advocating blockchain and encryption, and with a group member of a former Goldman Sachs member, refuting encryption, saying that he would only accept equity in any investment in blockchain startups. Or bills.

Remember, when unbelievers and others who pray for the demise of BTC point out that owning cryptocurrency is a stupid game, because tokens do not provide you as an investor with shareholder-like dividend rights, startups or any profits from the ecosystem Power or governance? Shockingly, this concern has almost disappeared from the conversation about encryption, and now the market is capitalized about 1.2 trillion US dollars and cryptocurrency futures trading on the Chicago Mercantile Exchange and the Intercontinental Exchange, the parent company of the New York Stock Exchange. Perhaps DeFi has gained some credit because it allows investors to earn “interest” by borrowing and collateralizing their coins, and some credit is also due to the growing popularity of proof of equity rather than proof of work.

Savior

However, the most striking thing is not Tony Hawk, nor the woman who yelled at Dorsey about Twitter’s privacy policy from the first row. Nayib Bukele, the young president of the Republic of El Salvador, is from the most densely populated country in Central America. He appeared via video broadcast at the end of the meeting.Since 2001, El Salvador has given up its own legal tender adoption The US dollar is its official currency.

At the press conference, Booker announced, The country will adopt Bitcoin As the second local legal tender, it is equivalent to the U.S. dollar. A few days later, the legislature there passed a new law to do so.In Miami, he Explanation Such adoption “will create jobs and help provide financial inclusion for thousands of people outside the formal economy.” (This is Report Approximately 70% of adults in El Salvador do not have a bank account or credit card. )

According to reports, the law requires not only to allow all merchants to accept BTC’s goods and services in commercial transactions, except for those lacking technology. It also eliminates any capital gains tax on BTC transactions, providing more stability for digital assets. Finally, a development bank will be created to hold $150 million in BTC so that merchants can instantly convert BTC to U.S. dollars. Double wow!

related: Adopt Bitcoin standard?El Salvador writes himself into the history book

Today, we have many countries and municipalities experimenting with blockchain use cases outside of financial commitments, including supply chain supply and real estate transaction records. Examples include Sweden, Georgia, United Arab Emirates-with the help of the International Monetary Fund, other countries include Bolivia, Peru, and Argentina. But no country has ever compared the assets of computer code development with the U.S. dollar!

It will be interesting to see how other sovereign nations react to this. I’m already reading research by economists who claim that El Salvador’s economy will collapse because of this legislation.and International Monetary Fund poses. Let’s see which country will do this next. I predict that there will be many in the next few years, allowing this dual system to coexist in these countries. This is something I have been predicting since 2018.

This article does not contain investment advice or recommendations. Every investment and trading action involves risks, and readers should research on their own when making a decision.

The views expressed are those of the author and do not necessarily reflect the views of Cointelegraph or the Florida International University School of Law or its affiliates. This article is for general reference only, and should not and should not be regarded as legal advice.