El Salvador remains the only country to ever give cryptocurrency the chance to be administered as a legal tender; many other countries have sort of entertained the possibility but didn’t at the very last moment. Despite clear warnings from IMF and the World Bank, El Salvador went on to make Bitcoin a legal tender. Now there is this discussion being trotted around among the crypto enthusiasts and the opposition of decentralization that making Bitcoin a legal tender will affect the performance of conventional markets and financial systems such as banks.
A panel discussion was held on November 18 in which various banking members and personnel took part to share their minds about Bitcoin and the Co-existing of conventional financial systems with the flagship cryptocurrency. Almost everyone in the room vouched for Bitcoin and said that they don’t see the flagship cryptocurrency as a danger. According to the CEO of SERFINSA Leonardo Guini, there are benefits on both sides he says and banking and Bitcoin could not only coexist but build a stronger foundation to welcome the modern world of finance.
Bitcoin and Conventional Banking Sectors
According to Leonardo, this is a unique opportunity, the coexisting of Bitcoin along with the conventional financial systems within El Salvador. He said that as long as everyone sticks to the legal and operational framework designed for their possible coexisting, there won’t be any problem. But as soon as anyone starts crossing the line, it would all fall to pieces. That is why it is important that both banking systems and Bitcoin supporters and enthusiasts work side by the side of each other to ensure that this symbiosis of the modern financial world continues to work unaffected.
El Salvador has gone a step ahead and developed crypto learning schools to facilitate the locals with crypto education. This will present them with more opportunities to have an open mind and work together with the conventional banking systems and Bitcoin for their own good. No one knows if any other country in the near future is going to adopt Bitcoin as a legal tender, but as of now, it seems that Bitcoin and financial systems of a centralized nature would just have to find common ground.