El Salvador - How Does The Trade Work In The Bitcoin Capital?

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El Salvador - How Does The Trade Work In The Bitcoin Capital?
John Nelson

Glopinion by

John Nelson

Apr 11, 2022

El Salvador is known as the new capital of Bitcoin. We have researched for you how it works in that country.

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When you arrive in El Salvador, the first thing you will see at the airport is an interesting poster with a message that represents a message from the future. If you ever go to that country this is roughly what your stay will look like and how you will use your Bitcoins as a means of payment.

In September 2021, El Salvador became the first country in the world to declare Bitcoin the official currency of the country. This means that all companies and enterprises “should” accept Bitcoin as a means of payment for their goods and services.

At the entrance to the country at the airport, you have to pay $ 12 to a civil servant. Civil servants at the airport wear shirts with the coat of arms of El Salvador with the inscription "God, Union, Freedom". This is a very interesting beginning of the path leading to the dream of the power of cryptocurrencies, as an alternative to the global financial system.

But when you enter the country, even if you have a smartphone full of Bitcoin, you will not be able to enter by using Bitcoin, this is a bit ironic considering that it is the capital of Bitcoin, but you have to pay in cash or by card to enter the country.

The reason for this is that the Bitcoin processing system in El Salvador "Chivo" cannot function at the airport for some reason. The system is installed but it doesn't work at the airport so you have to pay with a card which takes away your bank commission, the start may not be so good because it's still a Bitcoin country.

This beginning is very disappointing, but it is only the beginning of the road. Preparations for the use of cryptocurrencies are thorough and every transaction must be recorded in a blockchain. Of course, in order to embark on a journey where you can pay with digital money, you must also have a digital wallet. For El Salvador, the best wallet is Satoshi, which is very easy to use and is known for its tremendous speed when working with Bitcoin.

Satoshi is a mobile phone application that stores all information about digital payments; it also has a coded key that allows only those who know the code to unlock the coin. This way you can transfer the coin to those from whom you buy goods or services. There is also the possibility of using spare wallets from other companies such as Strike, Coinbase Global, and Muun Vallet.

The current value of each Bitcoin is $ 40,546. Let's say you take 0.027 Bitcoin and put it in your wallet, which is a little over $ 1,050. Of course, the prices of cryptocurrencies vary greatly and you always need to know the value of Bitcoin when you go shopping.

It would also be good to know El Salvador when traveling to that country. El Salvador has been using the US dollar as its official currency since 2001. And now, President Najib Bukele has encouraged the use of cryptocurrencies to boost the country's tourism image and encourage investment.

There is a common scene on the streets of El Salvador, traders are pushing their carts with various goods, mostly fruits and vegetables, and barbecue smoke is everywhere. A large number of street food kiosks are located at every turn. Most of these kiosks do not accept cryptocurrencies as a means of payment, but you have to use the dollar if you want to buy something on the street.

It's the same when it comes to stores that provide services, let's say you will find it hard to find a store that will agree to fix your glasses for Bitcoin. But if you go to a bigger center, such as swimming pools and big restaurants, you can use Bitcoin there as a means of payment. Let's say one hour of using the pool plus 2 sodas will cost you 5,500 Satoshis, or $ 2.20.

The answer is basically that even though you are in the capital of Bitcoin, you have to have US dollars and Bitcoin with you because somewhere you will be able to pay with Bitcoins, and somewhere you will have to pay in dollars because not everyone accepts Bitcoin.

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