The citizens of the Central American country want to clear their doubts about Bitcoin before the Law enters into force. They want to know how they should use cryptocurrency and how they can send remittances with it effectively.
On September 7th, the Bitcoin Law that the Government of El Salvador introduced will go into effect. The inhabitants of that country can choose between cryptocurrency and the US dollar for their commercial activities.
The disinformation campaign around El Salvador’s Bitcoin Law could be the main barrier to its implementation. Salvadoran Felipe Escoto said that the population is scared because they know nothing, but he recognizes that it could be a great opportunity.
Many Salvadorans believe that Bitcoin is a complex payment system whose usefulness they do not understand beyond the existing alternatives. A part of the population expresses doubts about Bitcoin (BTC), but many questions remain without answers.
How to Get Started with Bitcoin
Before starting, users of the Bitcoin network should receive education to make appropriate decisions. They can opt for free PDF books and free courses available online to get up to date quickly. Several of these resources explain decentralization implementation, cryptocurrency mining operations, and Bitcoin storage.
Additionally, there are specialized glossaries online where they can find content to help clarify their doubts. Likewise, many guides and tutorials will allow them to use Bitcoin properly.
Education helps avoid mistakes and discover the different alternatives to manage Bitcoin holdings. Users must decide if they want to save Bitcoin, use it as a form of payment, or benefit from price fluctuations.
Where to Safeguard Bitcoin
There are different ways to safeguard and manage funds in Bitcoin with varying degrees of security and ease of use. Therefore, those who start should choose a hardware wallet to secure and protect the private keys of their crypto assets. However, if they want to pay for daily expenses, they should use Bitcoin wallet apps on their cell phones.
There are also exchanges where users can store their holdings to respond to price fluctuations. In addition to the custody service, these platforms offer the trading of crypto assets for national fiat currencies or other cryptocurrencies.
By depositing their assets on exchanges, they are not directly dealing with the Bitcoin network but with an intermediary. As their funds are in the wallet of those platforms, they lose their autonomy to this third party.
Cybercriminals can attack these platforms, putting the money of users at risk. Besides, the directors of exchanges could lose the keys or die without having taken proper precautions.
How to Send Remittances with Bitcoin
Bitcoin will allow Salvadorans to have a new alternative to send remittances. This mechanism does not require making long lines or going to a physical office, as with traditional systems. Users can make transfers any time every day, cheaply, with no restrictions on the amount to send.
They can send remittances with Bitcoin from any wallet by entering the recipient’s address and specifying the amount. This way requires a fee payment per transaction, which varies according to the congestion of the network.
Salvadorans will also be able to make and receive remittances using the Chivo Wallet of the Government, which requires no fee payment. Additionally, the remittances may be in Bitcoin or US dollars, depending on whoever sends or receives them.
Another alternative that Salvadorans have is to exchange the funds they receive for cash. They will be able to resort to any Chivo point of sale that the Government will deploy throughout the country.
By Alexander Salazar