El Salvador is heavily using bitcoin and blockchain.
El Salvador is heavily using bitcoin and blockchain to reduce fraud risks within its economy. The website bitcoin-profitapp.com will assist traders in their bitcoin journey with the best trading tools, fast payouts, and phenomenal customer support. Proof-of-concepts such as blockchain passports have already been established in the region, with further proof-of-concepts planned for 2023 and 2024.
The Central American country has been working with the United Nations on an initiative called ID4D, whose mission is to ensure that every person has a legal identity by 2030. To help meet this goal, El Salvador is using blockchain technology to create national digital ID cards to help prevent government-related fraud, such as aid-related corruption.
The private sector, too, is interested in blockchain technology for supply chain documentation. Corporations are turning to technology for banking processes, healthcare data, and supply chains. For example, Barclays Bank recently announced plans for a new financial product with multiple blockchain company partners. In addition, a few U.S. companies are already implementing blockchain technology in their supply chain documentation: Walmart, UPS, and Microsoft.
Blockchain technology may be beneficial for government documents, including passports. Companies can use this technology to store sensitive information and, therefore, also helps reduce threats by hackers. For example, El Salvador is planning to implement a proof-of-concept of a blockchain passport that will help secure data and reduce identity fraud. This technology in Central America comes at an opportune time; other countries in the region have been known to use forged documents or fail to issue passports. In 2014 alone, over two million identity fraud cases globally cost over $2 billion.
Use of blockchain and bitcoin in El Salvador for bitcoin city:
The concept of city officially printed the first blockchain birth certificates in the world for testing/proof of concept. El Salvador has very advanced cyber security to protect its systems because it has been attacked by Mexican Drug Cartels, one of them when they hacked into a police computer trapping 800 police officers and stealing their guns.
The government is trying to decentralize its systems to prevent any cyber-attack. In addition, the city has the highest rates of crime and unemployment in the world, so they will be able to test this technology and see how it truly works in real-life situations. Bitcoin city will use $1 billion of funds collected from the investor to build an intelligent infrastructure backed by blockchain. According to the official website, the project is being developed as a “city museum emphasizing human rights and civil liberties.”
The goal is to ensure that all databases are protected from outside manipulation or destruction, which will allow for the mass adoption of digital currencies. Bitcoin city is also creating a working prototype of a blockchain passport. In addition, it intends to build another town using similar technology.
Bitcoin and El Salvador- The first country to make BTC a legal tender:
As a result of this decision, companies are now allowed to hold cryptocurrencies as financial assets. The bill defines cryptocurrency and digital tokens as “electronic money.” It also states that the entity that issues it is not part of the financial system, so it is not authorized or subject to regulation. It will make El Salvador the first country in the world to officially accept bitcoin and other cryptocurrencies as legal tender.
El Salvador has thousands of bitcoin ATMs:
The El Salvadorian Institute of Economic Development and Planning (IEPADES) reported that there are 2,900 ATMs installed in the country, which is a high number for the size of its economy. Many of those machines are located in major urban centers such as San Salvador, Apopa, Sensuntepeque, and Soyapango. By locating the ATMs in these areas, it is possible to reach more people who do not have access to bank services. There are also machines in smaller cities and towns across the country.
El Salvador pays fewer remittance fees due to bitcoin:
Because of its strict currency controls, El Salvador needs help finding ways to accept foreign currencies. However, it has found a way by using bitcoin. The country has only started using bitcoin in the last year and is one of the few to receive remittances in bitcoin, which has decreased its costs by as much as 60%.
The Central Bank of El Salvador decided to allow financial institutions to use bitcoin to transfer funds from abroad. Blockchain technology allows the creation of digital money that can be held by wallet electronically on a person’s computer via blockchain. It will help reduce remittance costs and generate more revenue for Salvadorian banks.
