You might have come across a story on the news or on social media that doesn’t have much significance but with repeated coverage and extensive airtime starts getting some traction. Soon enough, it becomes the story of the week, and with enough stretching, it could become the biggest news there is. Something similar has happened with El Salvador’s Bitcoin adoption as a legal tender lately; although the event holds an incredible significance as El Salvador has become the first country to ever recognize Bitcoin, still it isn’t much of a significance to celebrate over, says the executive of Fidelity Jurrien Timmer. He mentions this event as a bit of exaggeration and needs to be addressed for what it is.
El Salvador’s Bitcoin Adoption Is Important
Taking his statement into account, he might be onto something; adopting a second payment method is not as significant as dropping every other and only aiming for a single one. Almost all countries of the world accept each other’s currencies, these are converted into the local one through a value calculator, and then the transition is made, nothing significant. However, what would be significant is if a country dropped every other fiat currency and demanded only a particular one in exchange for goods, services, or other payments, then it would be something extraordinary.
This doesn’t even shove digital assets such as cryptocurrencies into the mix. What would be more significant for El Salvador is if it dropped the US dollar altogether and decided to work only with Bitcoin and nothing else. Now it would be a headline worth tingling over people’s screens and worth the journalist’s time debating behind cameras in news studios, according to Fidelity’s executive. People still have the authority to decide which mode of payment they want to stick with, whether it would be dollar or bitcoin.
In some capacity, El Salvador has managed to score a rather sensational spot in history by becoming the first country to adopt cryptocurrency out of the blue but to beat the drums all day long and into the night around this would be an exaggeration and nothing else.