El Salvador was the first country in the world to make bitcoin legal tender. Since then, the national project of Nayib Bukele has become the prototype for any other country that might be tempted to go in the same direction.
Speculation of new countries adopting bitcoin as legal tender has arisen, hinting it will occur once again in Latin America. Surprisingly, the United States has several politicians advocating for bitcoin at different levels. Recently a new candidate for the US Senate, Bryan Solstin, has a primary objective to make bitcoin a legal tender at the federal level.
Bryan Solstin, a privacy advocate, went viral on crypto Twitter when he introduced his candidacy for the US Senate, where he stated clearly that his main objective would be to make bitcoin legal tender throughout the United States.
Because the United States is bigger than El Salvador, it makes it more challenging to make bitcoin a legal tender.
We can take baby steps to make it effective, with this I mean 0% tax for bitcoin. We can move the actual exempt levels of 200 to 600 dollars, getting rid of capital gains as this creates friction with the velocity of value, which has large benefits for the wealthy, the poor or the middle class, it’s beneficial for everyone.
This would mean if somebody wanted to purchase using bitcoin with for example the Lightning Network, it shouldn’t be a problem, at this moment it’s not a technical challenge, it’s a political one as it’s a taxable event as the IRS treats bitcoin as a property and not a currency.
We can’t do this overnight, we can slowly do this transition by moving the exemption quantity from 200, 600 or 1000 and beyond, we have political tools for this.