"Latecomers may regret hesitating."
Early Adopters
El Salvador was the first country to recognize Bitcoin as legal tender.
This news comes just a few months after Nayib Bukele, the president of the company, introduced legislation to allow digital currency to be accepted alongside the US dollars back in June. He also started building out new financial infrastructure through Strike, a digital wallet platform.
Edward Snowden, a famous Obama-era whistleblower, predicts that El Salvador will become the first country to accept Bitcoin. Everyone else is at risk of being left behind.
Domino Theory
Snowden's argument, which was inspired by Aaron van Wirdums story of using Bitcoin for breakfast at McDonalds in El Salvador, seems to be that countries who adopt crypto early will have greater chances of shaping new financial networks around the globe and getting a leg up over the rest.
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Snowden tweeted Tuesday that Bitcoin was officially recognized in its first country as legal tender. The headlines are not the only reason why there is pressure on other nations to buy Bitcoin, even if it is a reserve asset. Bitcoin's design strongly encourages early adoption.
Latecomers may regret hesitating, Snowden added.
Selling is hard
Venezuela launched its own cryptocurrency, which is oil-backed, in 2019. Reuters reports that Honduras may follow El Salvador's lead. But global adoption still seems farfetched. Major financial institutions remain cautious about Bitcoin's volatility. China has also been hardening against cryptocurrencies because they are environmentally harmful and lack intrinsic value.
There are also questions regarding the practicality of El Salvador. The majority of people in El Salvador don't have bank accounts and live in a cash-based economy. The hassle of digitizing could make it more costly than worth it.
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This country plans to be the first to accept Bitcoin as a legal tender
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