🧐 Wow this is #ElSalvador’s proposed #bitcoin-as-legal-tender law, English translation
"Article 7: Every economic agent must accept #bitcoin as payment when offered to him by whoever acquires a good or service."

"Article 13: All obligations in money expressed in USD, existing before the effective date of this law, may be paid in #bitcoin."
"Art 14: ...the State will guarantee, thru the creation of a trust at the Banco de Desarrollo de ElSalvador, the automatic & instantaneous convertibility of #bitcoin to USD necessary for the alternatives provided by the State in Art 8."

Oh boy, I see practical problems here tho
Here's the issue--there is no such thing as "instantaneous convertibility" for the US dollar, including for #bitcoin. Just dig into how the USD settles & this will become clear. Does anyone know if #ElSalvador's central bank even has a clearing account at the Federal Reserve??

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More from @CaitlinLong_

8 Jun
1/ I'M PSYCHED to announce new advisors for @AvantiBT, helping design & build services for traditional institutional investors & corporate treasurers, incl @Ford's former treasurer, Neil Schloss, Ford's ex-treasury IT head Bob Cullinan & ex-@blackrock managing director Tim Keefe.
2/ "I see @AvantiBT’s solutions as potential game changers for corporate treasurers."--Neil Schloss, ex-Treasurer of @Ford. "Avanti is building API-based payment solutions...to solve day-to-day problems by seamlessly integrating payments processes w/ treasury cash mgmt systems."
3/ It's a thrill to bring these 3 accomplished execs into @AvantiBT's fold. Tim Keefe is one of the smartest portfolio managers w/ whom I've ever worked, dating back to 1997. He's now "all-in" on #bitcoin & a founder at @LedgerstatC & partner at @OffTheChainCap.
Read 6 tweets
6 Jun
1/ WELL WRITTEN article--thx @Vlajournaliste. A couple of key points: "The assumption that #WallSt matters to #bitcoin is a fallacy because the information frontier is not in New York. It's not in Silicon Valley either. These mkts are decentralized."
2/ "It means at the end of the day that Wall Street will never be able to have [central] clearing for digital assets," she said, "because Wall Street will never be able to get its hands on a sufficient amount of the collateral to create a true clearinghouse."
3/ "She explains that 75% to 80% of #bitcoin and ether, on average, are held by individuals rather than intermediaries, and during bull markets, even less crypto is held by intermediaries." (h/t @nic__carter)
Read 7 tweets
6 Jun
1/ THREAD ABOUT A HISTORIC DAY in #bitcoin: #ElSalvador president publicly announced support for legislation to make #BTC legal tender. *IF* it does become law, it wld have many secondary effects. Steel yourselves bc a big fight on this probably coming tho
2/ I dunno anything about politics in #ElSalvador, but the world is about to pressure it given what's at stake (see details below). But before turning to that, SERIOUS HATS OFF🤠to President Bukele, @JackMallers & @Blockstream for pulling this off. Guys this is REALLY big!!! 🙏👋
3/ OK let's dig in. Here's a tl;dr: *IF* #ElSalvador adopts legislation to make #bitcoin legal tender, bitcoin:
* likely gets status as "money" so treated on par w/ foreign currency by banks
* possibly gets "cash" accounting treatment under USGAAP/IFRS (solves #BTC adverse acctg)
Read 14 tweets
24 May
MORE FED COMMENTS ABOUT #stablecoins. Watch this space--putting pieces together, Fed action is coming:
federalreserve.gov/newsevents/spe… #Consensus2021
"Depending on underlying arrangements, some may expose consumers and businesses to risk. If widely adopted, #stablecoins could serve as the basis of an alternative payments system oriented around new private forms of money."
"Given the network externalities associated w/ achieving scale in payments, there is a risk that the widespread use of private monies for consumer payments could fragment parts of the U.S. payment system in ways that impose burdens and raise costs for households and businesses."
Read 11 tweets
20 May
1/ IT'S CLEAR a US #crypto regulatory crackdown is starting but I'm optimistic bc most of the major players/agencies have spoken already & the policy is taking shape: it's "pay taxes, comply w/ laws & don't take shortcuts, & we'll enable the innovation." It's NOT a "#bitcoin ban"
2/ A clear chronology:🧐
* Fed releases pymt system access guidelines (5/5)
* SEC warns abt #bitcoin futures (5/11)
* Binance IRS/DOJ story in Bloomberg (5/13)
* IRS article in WSJ=warning to pay taxes (5/14)
* FDIC ice thaws--it issues its first RFI (5/17)
3/ ...continuing:
* OCC says reviewing all prior #crypto bank actions (5/18)
* Senate Banking Chairman warns OCC to clamp down on trust bank charters (5/19)
* Treasury Sec Yellen announces big IRS tax compliance push (5/20)
* Fed's Powell plans paper on payment innovation (5/20)
Read 7 tweets
18 May
NEW PIECE OF US REGULATORY PUZZLE: a paper criticizing @USOCC's change of longstanding rule last January, which paved way for #digitalasset custodians to get OCC trust bank charters. Today OCC said it's all under review. Sands are shifting in DC. @CSBSNews
2/ Link to the paper was hard to see in the quote tweet, so here it is again: 🧐
3/ ...but also just saw this too -- coincidence to release this statement on the same day as the @USOCC news??
Read 4 tweets

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