Thread by @GeorgeSelgin

"Bukele ... is working with CEO Jack Mallers to help the country legally adopt bitcoin." I'm still waiting for a coherent explanation of how making Bitcoin legal tender is supposed to "help" Salvadorans adopt Bitcoin. forbes.com/sites/carliepo… 1/

So far, the closest thing I've since is this @CaitlinLong_ thread:

https://twitter.com/CaitlinLong_/status/1401334421773504517?s=20

2/

But Caitlin's account is unsatisfactory in several respects. First, she say's it is "likely" to give BTC "status as 'money' so treated on par w/ foreign currency by banks." But legal tender designation is not only insufficient but unnecessary for that end. 3/

(This should be obvious. In most countries "foreign currency" is not legal tender; yet in many banks can accept and maintain FX deposits.) 4/

More seriously, Caitlin misconstrues the meaning and significance of "legal tender" status. She says it "means citizens must accept "X" if offered in payment of an obligation in exchange for delivering property." But that's generally not true. See jpkoning.blogspot.com/2013/01/legal-… 5/

Still less is it the case that "Legal tender is key to commercial law, which is THE foundational layer of any legal system." Last time I checked, Scotland still had a well-functioning legal system! en.wikipedia.org/wiki/Scots_law 6/

Yet none of the paper currency used in Scotland is legal tender. (Only coins are designated such, and only for small payments. For instance, 1p and 2p coins are only legal tender up to 20p.) Surely such trifling stuff can't supply the foundation for an entire legal system! 7/

So, Bitcoin experts, kindly help me overcome yet another instance of my Bitcoin cluelessness by telling me just @lwSalvadoran's need Bukele's legal tender law to take full advantage of what Bitcoin and Strike already can offer them.

Thanks!

Att'n: @jp_koning @WilliamJLuther @lawrencehwhite1 @allenf32 @Frances_Coppola @dgwbirch @FintechDiego @vtg2 @sghorwitz @TheStalwart