Death by Bitcoin. El Salvador edition


JPM with the note:

On June 8, El Salvador approved in congress a law that granted bitcoin status as legal tender, which will be implemented on September 7, assuming as we do the Supreme Court of Justice rejects challenges to constitutionality. We provided a first assessment on the matter after the approval, but as focus shifts to its implementation there are more questions on the challenges it poses. We explore some of the potential issues, even though we recognize that regulation is still forthcoming and many aspects likely are still being deliberated. Broadly speaking we focus on whether Bitcoin could become widely adopted in El Salvador, on what could follow in such scenario, and also touch upon, briefly, on some of the systemic risks that could arise, as highlighted by some involved parties.

Could Bitcoin become widely used?

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.