INSUBCONTINENT EXCLUSIVE:
AlphaPoint co-founders Igor Telyatnikov and Vadim Telyatnikov shared views on cryptocurrency trendsEl Salvador created history on September
7 last year, when it became the first country to adopt Bitcoin as a legal tender
However, the sailing hasn't been smooth for the Central American nation
Frequent tech glitches, a large population unfamiliar with Bitcoin's usage, protests by citizens and an ongoing energy crisis made
The situation reached its climax when the International Monetary Fund (IMF) urged El Salvador to drop Bitcoin as a legal tender, citing
risks to financial stability
began to act as a major roadblock for the larger adoption of Bitcoin
cryptocurrencies, central banks-backed digital currencies and India's tryst with cryptocurrency
In El Salvador, many purchases made are less than $1
The Lightning Network enables nearly instantaneous transactions with minimal transaction fees, and the country has proven that this new
technology works at scale
The Chivo wallet is a public utility that enables interoperability with the local banking system in US Dollars as well as Bitcoin
transactions between Chivo wallets or any third party wallet
be absolutely replicated in other parts of the world
Dozens of countries are already looking into laws around making Bitcoin a legal tender
Some countries are also looking into making cryptocurrencies like stablecoins as legal tender
For instance, Bermuda has made it legal to pay taxes in dollar-backed stablecoins
These technological developments will enable everyone to participate in the financial ecosystem
can benefit the population
When one says tax on transactions, we would assume that those are not illegal transactions
I believe the cryptocurrency community in India would welcome a clear guidance from the government
initiative in El Salvador can be a model for countries like India
The underlying technology of 'Lightning Network' - also used for 'Chivo' wallet - is ready for usage at a large scale, even in India
However, enabling access to 1.3 billion people is a different undertaking than supporting a population of about 6.5 million
In a country like India, government can focus on core frameworks, under which different businesses or municipalities could operate
The government-led initiatives might target specific underserved populations
As cryptocurrencies and stablecoins have become more popular, Central banks have realised that they need to provide an alternative
Studies have also shown that CBDCs can increase the velocity of economic activity and increase the GDP.
