Bitcoin, as a Legal Tender?
With El Salvador declaring bitcoin as a legal tender, becoming the first nation to do so and Paraguay presumably looking to propose a bill for the same, later this year, is this the future of cryptocurrencies? Well, first let's know, What does using bitcoin as a legal tender mean? Legal tender is anything recognized by law as a means to settle a debt or meet a financial obligation, including tax payments, contracts, and legal fines or damages. The national currency is legal tender in practically every country. Making bitcoin a legal tender would mean using it for trades and reserves, just like reserve notes such as $1, $2, or $5 are used in the US. But why bitcoin as a legal tender might not be effective for bigger economies? Well, in the beginning, this concept was looked down upon primarily because countries like India and the States, already have good reserves and local currencies which are much more stable than cryptocurrencies like bitcoin, for instance. Moreover, ...