Since the law came into force that imposes Bitcoin as legal tender in El Salvador, many famous brands have started accepting payments in cryptocurrency, as reported by Cryptonomist.ch.
Bitcoin payments in El Salvador
For now, these are local initiatives, limited to the territory of the Central American state where they are in fact forced by law to accept them. However, it is possible that, if this kind of experimentation in El Salvador gives positive results, some of these famous brands decide to extend the service to other countries as well.
El Salvador today is still a more unique than rare case, while in all the other countries of the world the situation is completely different. For this reason, extending the service to other states could be simple from a technical point of view. It must be said that it is very likely that the Bitcoins collected will be instantly changed into US dollars, or the other legal tender in El Salvador, using one of the many services that allow you to do so.
In this way, for those who collect it does not change much compared to the past, because even if the customer were to pay in bitcoin, the merchant would still cash in dollars.
To date, it is known that among the most famous brands that have already concretely started accepting bitcoin payments in El Salvador are McDonald’s, Starbucks, Pizza Hut and Zara, but surely there are also many others, given that the law extends to all businesses in the country.
The fact is that for large chains, already organized globally, it would be much easier to extend the service even outside of El Salvador, since they often use standardized processes that can be easily used in different parts of the world. .
Bitcoin vs fiat currencies
Bitcoin is a natively global currency, without borders, so it can be used in exactly the same way around the world. Furthermore, instant exchange services not only support US dollars, although this is the most liquid market, but also other fiat currencies, starting with the Euro.
For these reasons, analysts speculate that in the future, bitcoin payments could also be activated in other states, provided that there is a specific demand from customers in this regard.
In El Salvador, many citizens are starting to receive remittances from abroad in BTC, because they are faster and cheaper (especially thanks to Lightning Network), and therefore it is easier for them to have bitcoins to spend.
Blackrock’s Bitcoin Opinion
All this is generating positive expectations also for the price of bitcoin, so much so that the CEO of Global Fixed Income of Blackrock, Rick Rieder, sweating on Friday an interview with CNBC about the legal tender of bitcoin in El Salvador said that its value could register a significant increase in the future. Blackrock is the largest wealth manager in the world, with approximately $ 9.5 trillion under management, and Rieder is responsible for approximately $ 2.4 trillion in assets.
He stated: “Part of the reasons I own a small fraction of bitcoin is that I think there will be more people joining this fray over time… I like volatile assets that have an upward convexity. I could see bitcoin increase significantly ”.
Bitcoin reaches 700 thousand blocks
Meanwhile, the 700,000th block of the Bitcoin blockchain has been mined. In total, 18.812 million BTC has now been issued, or 89.58% of the total that will be issued in its entire history.