{"id":405212,"date":"2022-02-13T08:11:00","date_gmt":"2022-02-13T05:11:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/el-salvadors-bitcoin-law-understanding-alternatives-to-government-intervention\/"},"modified":"2022-02-13T08:11:00","modified_gmt":"2022-02-13T05:11:00","slug":"el-salvadors-bitcoin-law-understanding-alternatives-to-government-intervention","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/el-salvadors-bitcoin-law-understanding-alternatives-to-government-intervention\/","title":{"rendered":"# El Salvador\u2019s Bitcoin Law: Understanding alternatives to government intervention"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a4132d270479\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a4132d270479\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/el-salvadors-bitcoin-law-understanding-alternatives-to-government-intervention\/#Banking_the_unbanked_in_Latin_America\" >Banking the unbanked in Latin America<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/el-salvadors-bitcoin-law-understanding-alternatives-to-government-intervention\/#Understanding_government_intervention\" >Understanding government intervention<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/el-salvadors-bitcoin-law-understanding-alternatives-to-government-intervention\/#Reenvisioning_mainstream_adoption\" >Reenvisioning mainstream adoption<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/el-salvadors-bitcoin-law-understanding-alternatives-to-government-intervention\/#Promoting_mobile_accessibility\" >Promoting mobile accessibility<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/el-salvadors-bitcoin-law-understanding-alternatives-to-government-intervention\/#Offering_educational_services\" >Offering educational services<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/buradabiliyorum.com\/en\/el-salvadors-bitcoin-law-understanding-alternatives-to-government-intervention\/#Breaking_financial_barriers\" >Breaking financial barriers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/buradabiliyorum.com\/en\/el-salvadors-bitcoin-law-understanding-alternatives-to-government-intervention\/#Encouraging_institutional_adoption\" >Encouraging institutional adoption<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/buradabiliyorum.com\/en\/el-salvadors-bitcoin-law-understanding-alternatives-to-government-intervention\/#Branching_out_from_Bitcoin\" >Branching out from Bitcoin<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/buradabiliyorum.com\/en\/el-salvadors-bitcoin-law-understanding-alternatives-to-government-intervention\/#Think_local\" >Think local<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># El Salvador\u2019s Bitcoin Law: Understanding alternatives to government intervention <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>Last year, El Salvador dominated headlines as the first country to adopt Bitcoin as legal tender. The move is controversial both in and outside of the country, heralded for its potential to bring financial services to large portions of El Salvador\u2019s unbanked population and criticized for its top-down implementation. This has created a sense of uncertainty and made some Salvadorans feel they lacked a choice, despite locations like El Zonte already accepting Bitcoin (BTC) as payment through organic developments that predate the law.<\/p>\n<p>These arguments, while for and against the law, don\u2019t actually exist in contradiction to one another. While the decision may have been made by the government, it is bringing financial services to new portions of the population. Not all governments, however, are interested in declaring Bitcoin a legal tender, leaving us to consider a new question: How can we encourage crypto adoption in emerging markets like El Salvador without involving governments?<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>What is really behind El Salvador\u2019s \u2018Bitcoin Law\u2019? Experts answer<\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Banking_the_unbanked_in_Latin_America\"><\/span>Banking the unbanked in Latin America<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In August of 2021, the World Bank <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/blogs.worldbank.org\/latinamerica\/poor-digital-access-holding-latin-america-and-caribbean-back-heres-how-change-it\">reported<\/a> that nearly half of the Latin American and Caribbean (LAC) population were unbanked, meaning that they had no access to a bank account or other financial services. These unbanked individuals cited the cost of maintaining an account, distance from financial institutions, lack of necessary documentation and lack of trust as among the most common reasons for <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/globalfindex.worldbank.org\/sites\/globalfindex\/files\/chapters\/2017%20Findex%20full%20report_chapter2.pdf\">remaining<\/a> unbanked. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-02\/583e4502-a891-4811-9f4f-e02e76265dac.png\"><\/figure>\n<p>Being unbanked poses major challenges, making it difficult for individuals to safely receive payments, save money, transfer funds outside of their communities or access credit and their credit scores. In short, being unbanked can make it nearly impossible for individuals to perform the daily financial transactions that many of us take for granted. <\/p>\n<p>Cryptocurrencies are changing that by helping individuals access online financial services like savings <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lications, lending platforms and even micro-insurance solutions from their mobile devices with far fewer hurdles and for lower fees than traditional financial institutions demand. It\u2019s these three characteristics of cryptocurrencies \u2014 accessibility, affordability and anonymity \u2014 that make Bitcoin an appealing option for banking the unbanked in countries like El Salvador. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Understanding_government_intervention\"><\/span>Understanding government intervention<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>It\u2019s important, however, to make the distinction between impact and implementation. While mass adoption of cryptocurrencies like Bitcoin can have a profoundly positive impact on unbanked populations, offering a new alternative for accessing vital financial services will bring forth more than a few ways to encourage that adoption.<\/p>\n<p>El Salvador chose government intervention, implementing Bitcoin as a legal tender as part of a larger strategy to move El Salvador out of poverty. In fact, the government itself even chose to invest its reserves in Bitcoin, taking on the risk of volatility in favor of the potential earnings and keeping its promise to support building infrastructures like schools and public facilities across the country.<\/p>\n<p><strong><em>Related: \u200b\u200b<\/em><\/strong><strong><em>El Salvador: How it started vs. how it went with the Bitcoin Law in 2021<\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Reenvisioning_mainstream_adoption\"><\/span>Reenvisioning mainstream adoption<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>However, government intervention isn\u2019t the only option. As many governments across Latin America express their disinterest in accepting Bitcoin as legal tender, we\u2019re beginning to envision alternative options for encouraging mainstream adoption from a more grassroots perspective. In my mind, there are five key factors that we must consider: mobile access, education, financial barriers, institutional adoption and Bitcoin alternatives.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Promoting_mobile_accessibility\"><\/span>Promoting mobile accessibility <span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>For the mass adoption of cryptocurrencies to take root, financial <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> companies involved in the crypto space must offer mobile-friendly solutions to users. In Latin America and the Caribbean, less than 50% of the population has fixed broadband <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.wilsoncenter.org\/sites\/default\/files\/media\/uploads\/documents\/Franz%20Drees_%20Digital%20Inclusion%20May%202021_final.pptx\">connectivity<\/a>, and only 9.9% has high-quality fiber <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.wilsoncenter.org\/sites\/default\/files\/media\/uploads\/documents\/Franz%20Drees_%20Digital%20Inclusion%20May%202021_final.pptx\">connectivity<\/a> at home, while 87% of the population <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.wilsoncenter.org\/sites\/default\/files\/media\/uploads\/documents\/Franz%20Drees_%20Digital%20Inclusion%20May%202021_final.pptx\">lives<\/a> within the range of a 4G signal. That\u2019s a 37% increase in the number of individuals able to access financial services when they\u2019re made available on mobile devices. If fintechs can create financial solutions for mobile phones, they can make it more convenient and intuitive for new users to engage with this novel technology.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-02\/33a43e10-1658-45f2-aa8a-2ee5c9267f49.png\"><\/figure>\n<h3><span class=\"ez-toc-section\" id=\"Offering_educational_services\"><\/span>Offering educational services<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>While mobile-friendly crypto offerings are already becoming the norm across the crypto space, education is another key consideration. Without a proper understanding of what cryptocurrency is and how it works, individuals cannot be expected to trust the technology or use it safely. Lack of trust was among the major reasons individuals cited for being unbanked.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Mass adoption of blockchain tech is possible, and education is the key<\/em><\/strong><\/p>\n<p>Fintechs can overcome that barrier and foster trust in cryptocurrencies by developing transparent educational programs designed to show users what cryptocurrencies are and how they can benefit from the technology. Programs such as Rabbithole are even taking that education a step further by incentivizing learning through learn-to-earn programs that reward users for learning to participate in decentralized applications (DApps). When that education is successful, it can move beyond building trust and inspire communities to build on top of preexisting technologies, adapting it to meet their needs and bringing even more users into the space.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Breaking_financial_barriers\"><\/span>Breaking financial barriers<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Of course, to begin transacting at all \u2014 be it through traditional or technical financial services \u2014 users must have basic funds. Universal basic income (UBI) initiatives can be especially effective in encouraging digital currency adoption by providing essential resources (i.e. income). ImpactMarket is currently leading the way for UBI in the blockchain space, allowing for the creation and distribution of unconditional basic income between communities and their beneficiaries through its decentralized poverty alleviation protocol. When funds are sent as digital assets through mobile-friendly education-oriented platforms, they encourage users to adopt the technology without forcing use upon individuals.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>How cryptocurrency can help in paying universal basic income<\/em><\/strong><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Encouraging_institutional_adoption\"><\/span>Encouraging institutional adoption<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The final piece of this puzzle is institutional adoption. UBI, education and mobile access will only get new users, especially otherwise unbanked individuals, so far if they cannot see opportunities to transact using digital currencies in everyday life. Groups like CARE and the Grameen Foundation are already incorporating blockchain technology into their transactions by using cryptocurrencies to provide aid in Ecuador and the Philippines, respectively. When institutions use cryptocurrencies to effect positive change, they inspire new trust in the technology while making funds available to vulnerable populations.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Branching_out_from_Bitcoin\"><\/span>Branching out from Bitcoin<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Bitcoin\u2019s popularity and El Salvador\u2019s move to adopt the cryptocurrency as legal tender should be viewed as an endorsement for cryptocurrency more broadly. Bitcoin isn\u2019t the only cryptocurrency capable of bringing financial services to unbanked individuals across the world. Other cryptocurrencies offer lower gas fees and smaller environmental impacts. While stablecoins serve as a safe alternative to Bitcoin\u2019s price volatility. <\/p>\n<p>It is worth considering how a variety of cryptocurrencies and stablecoins with varied benefits like fast transaction speeds, low gas fees and price stability, could be combined to offer individuals more accessible and affordable financial services.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Think_local\"><\/span>Think local<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>El Salvador\u2019s decision to implement Bitcoin as a legal tender may have emerged in recognition of cryptocurrencies\u2019 potential to benefit huge portions of the country\u2019s population, but we cannot expect all countries to follow in its footsteps. <\/p>\n<p>Fintech companies entering emerging markets in Latin America and beyond must consider alternative grassroots strategies for encouraging crypto adoption \u2014 mobile accessibility, education, access to funding, institutional adoption and Bitcoin alternatives will be key to encouraging mass adoption of cryptocurrencies in emerging markets without involving governments.<\/p>\n<p>To make these changes, it\u2019s important to think local rather than global. How can we tailor programs to meet these five needs to smaller communities across the globe, helping individuals access digital currencies and financial technologies that meet their distinct and diverse needs?<\/p>\n<p><em>This article was co-authored by<\/em><strong><em> Xochitl Cazador<\/em><\/strong><em> and <\/em><strong><em>Ang\u00e9lica Valle<\/em><\/strong><em>.<\/em><\/p>\n<p class=\"post-content__disclaimer\"><em>This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.<\/em><\/p>\n<p class=\"post-content__disclaimer\"><em>The views, thoughts and opinions expressed here are the authors\u2019 alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.<\/em><\/p>\n<div>\n<div style=\"background: rgb(239, 239, 239); border: 1px solid rgb(204, 204, 204); padding: 10px;\"><strong>Xochitl Cazador<\/strong> leads platform and builder growth at Celo Foundation. She has extensive experience shaping strategy into execution to drive growth and scale operations. Prior to Celo Foundation, Xochitl spent 15 years driving growth at Cisco, where she managed a $1 billion investment portfolio and led the expansion into 26 emerging markets resulting in 30% year-over-year growth. Xochitl holds a master\u2019s degree from Stanford Graduate School of Business.<\/div>\n<\/div>\n<div>\n<div style=\"background: rgb(239, 239, 239); border: 1px solid rgb(204, 204, 204); padding: 10px;\"><strong>Ang\u00e9lica Valle<\/strong> serves as ecosystem lead for Mexico at Celo Foundation, bringing with her more than four years of experience in Mexico\u2019s blockchain ecosystem. Before joining Celo, Ang\u00e9lica founded the digital transformation and blockchain consulting agency Oruka where she served as an adviser providing tailored solutions to governments and companies involved in the blockchain industry. In addition to her work with Mexico\u2019s blockchain ecosystem, Ang\u00e9lica has more than 10 years of experience in areas of public policy, <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">social<\/a> entrepreneurship and innovation.<\/div>\n<\/div>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/el-salvador-s-bitcoin-law-understanding-alternatives-to-government-intervention\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# El Salvador\u2019s Bitcoin Law: Understanding alternatives to government intervention &#8221; Last year, El Salvador dominated headlines as the first country to adopt Bitcoin as legal tender. The move is controversial both in and outside of the country, heralded for its potential to bring financial services to large portions of El Salvador\u2019s unbanked population and&#8230;<\/p>\n","protected":false},"author":1,"featured_media":405213,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDIvOTU3MDI4ZDctNTI0OS00YWMyLTgxODItNmIxNWM4YjMzY2U4LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,74862,74858,74894,74863,76853,90059,71511,70934],"class_list":["post-405212","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-bitcoin","tag-bitcoin-regulation","tag-blockchain","tag-cryptocurrencies","tag-latin-america","tag-el-salvador","tag-government","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/405212","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=405212"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/405212\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/405213"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=405212"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=405212"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=405212"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}