BITCOIN AS A PUBLIC POLICY TOOL FOR FINANCIAL DEVELOPMENT: A CASE FROM EL SALVADOR
Security Theme
Cybersecurity
Keywords
Blockchain, Bitcoin, El-Salvador, Financial Inclusion
Description
In our rapidly globalizing and digitalizing world, data transfer can be done quickly in multimedia, communication, computer systems, etc. On the other hand, a blockchain database is a technology that allows us to transfer assets such as digital money that we attribute value to. This technology, which eliminates centralization and distributes reliability and transparency among all users, is also known as the technology under virtual currencies such as Bitcoin and Ethereum. El-Salvador is the first country to accept Bitcoin as a legal currency. It is one of the most fundamental issues to wonder how this will affect the economy of El-Salvador and the spread of financial services to all members of society. In this study, it is examined how the process of accepting Bitcoin as legal money has an effect on the economy of El-Salvador and the percentage of people's access to financial services. Although there is not a great background to make an empirical assessment on the subject, it seems that a large part of the society has started to use Bitcoin through the official mobile application of the state. It is seen that even citizens who did not have a bank account before can access financial services with this method. In addition, the rapid increase in the investments coming to the country due to the tax advantages provides a great added value for the country's economy.
BITCOIN AS A PUBLIC POLICY TOOL FOR FINANCIAL DEVELOPMENT: A CASE FROM EL SALVADOR
In our rapidly globalizing and digitalizing world, data transfer can be done quickly in multimedia, communication, computer systems, etc. On the other hand, a blockchain database is a technology that allows us to transfer assets such as digital money that we attribute value to. This technology, which eliminates centralization and distributes reliability and transparency among all users, is also known as the technology under virtual currencies such as Bitcoin and Ethereum. El-Salvador is the first country to accept Bitcoin as a legal currency. It is one of the most fundamental issues to wonder how this will affect the economy of El-Salvador and the spread of financial services to all members of society. In this study, it is examined how the process of accepting Bitcoin as legal money has an effect on the economy of El-Salvador and the percentage of people's access to financial services. Although there is not a great background to make an empirical assessment on the subject, it seems that a large part of the society has started to use Bitcoin through the official mobile application of the state. It is seen that even citizens who did not have a bank account before can access financial services with this method. In addition, the rapid increase in the investments coming to the country due to the tax advantages provides a great added value for the country's economy.
