The country adopted Bitcoin as its second currency, in parallel with the fiat dollar replacing its own national currency.
El Salvador is far from the only state that does not print national money. Previously, they had no alternative to being replaced by the American dollar, but the Salvadoran Parliament and the President were the first in the world to experimentally launch settlements in a decentralized currency that does not belong to any issuing state.
Buterin believes that forced implementation will lead to an increase in theft and hacking of Bitcoin wallets, due to the lack of basic technical knowledge and skills among the population and banks. According to the creator of Ethereum, should have sought the adoption of Bitcoin in a “soft” way? verbal and legislative popularization of settlements in cryptocurrency.
Perhaps Buterin’s criticism is not related to the methods of introducing digital currencies. In fact, El Salvador left citizens with a choice, and only forced companies to adopt new methods of financial technologies, which do not differ from the introduction of POS terminals, electronic cash registers, etc.
El Salvador’s initiative buries Ethereum with the explosive growth of Bitcoin in the retail network by leveraging the Lightning network (LN) scaling protocol.
While Ethereum’s second-tier networks are losing users and TVL investments, the number of LN wallet users in September increased by 1164% to 9.7 million.El Salvador added only 2.5 million people, but thanks to his decision, trust in LN technology increased …
Analysts at Arcane Research also noted a 94% surge in BTC payments to the Lightning network in September, with a 26% increase in protocol throughput.
Unlike Vitalik Buterin, Arcane Research sees a positive aspect in the adoption of Bitcoin by developing countries. Cryptocurrency wallets will allow in the future to reach 850 million people living in Latin America without access to basic banking infrastructure.
Perhaps Buterin is intimidated by Arcane Research’s forecast of 700 million Lightning Network users by 2030. Ethereum will not be able to compete in the retail sector with such numbers without government support, which will significantly reduce the value of ETH for the mainstream and elevate Bitcoin.
#Vitalik #Buterin #spoke #Bitcoin #dictatorship #Salvador #threat #Ethereum