#Paradigm shift 2027 free#

They’ll get all sorts of incentives, including instant residency and eliminating most taxes-more on that in a bit. The government is also rolling out the red carpet for Bitcoin businesses and entrepreneurs who go to El Salvador. It’s a neutral form of money that nobody controls. Instead, they are staying focused on Bitcoin, which is the only cryptocurrency that’s truly decentralized. They aren’t trying something ridiculous like making their own cryptocurrency. Notably, they are, so far, avoiding the siren’s call of easy money from altcoins. It’s an ambitious move, and El Salvador seems to be doing it right.įrom what I can tell by his public statements, Bukele and his government have a sound understanding of Bitcoin and its economics. So it’s no surprise that the Bitcoin move has made Bukele a popular president. Instead of those billions of dollars in fees going to Western Union and similar companies, they will go directly into the pockets of Salvadorans thanks to Bitcoin. “By using Bitcoin, the amount received by more than a million low-income families will increase in the equivalent of billions of dollars every year.”

Here is what President Nayib Bukele said: It’s like going from a horse and buggy to a spaceship.įixing the remittance problem and improving the lives of average Salvadorans was a primary consideration in the government’s decision to make Bitcoin legal tender. We’re talking about an improvement of orders of magnitude. With Bitcoin and the Lightning Network, we’re not talking about just a little bit of an improvement.

#Paradigm shift 2027 free#

(The Lightning Network is a second layer application built on top of Bitcoin that allows for instant and nearly free transactions.) It can turn anyone’s cell phone into their own sovereign bank account that can send and receive payments from anywhere in the world. The space is ripe for disruption.īitcoin-specifically the Lightning Network-cuts out the middlemen and red tape of remittance payments. Receiving money from abroad in El Salvador is inefficient, expensive, and dangerous.

And since the cash pick-up points are well-known, criminals are known to congregate around them and rob people. And since more than 70% of Salvadorans do not have a bank account, they have to wait for days for the transfer to go through, go to an office, fill out many cumbersome forms, and pick up the physical cash in person. Remittance services charge fees that can exceed 10% for those international transfers. It was an enormous milestone in what I like to call The Bitcoin Supremacy-a historic megatrend in which Bitcoin could ultimately emerge as the world’s dominant form of money.Ī primary consideration was how Bitcoin could improve the country’s remittance problem.Įach year, Salvadorans who live abroad send over $6 billion back to their home country, about 22% of the country’s GDP. El Salvador made history on September 7, 2021, when it became the first country to recognize Bitcoin as a legal currency officially.