Paraphrasing @nayibbukele from @nic__carter's Spaces on #Bitcoin legal tender:

El Salvador govt will have a govt-wallet for merchants (but it won't be the only choice), as Bitcoin is an open network
@nayibbukele @nic__carter Company balance sheets will be in USD, but taxes can be paid with Bitcoin.

Debts will be able to be paid with Bitcoin.
There will be a trust fund put in place by govt, which will assume the price-risk of the merchants, and deposit USD for them, even if the customer pays BTC.
Proposing to give immediate permanent residency to a person who invests 3 BTC into El Salvador. This will be priced specifically in BTC.

1 BTC = 1 BTC
Bukele has a meeting with the IMF on Thursday, where they will discuss this law
The aim being to lure innovators and talent to the country.
Nic asked whether this is de-dollarisation.

Bukele clarifies, This is not de-dollarisation.
Bukele: Bitcoin beach team demonstrated that this is not for rich people only. A community can benefit from Bitcoin. And now we're going to demonstrate it on a country wide scale.
Bukele: Why have a dystopic future if we can build the future we wanted as kids?
Bukele: Inequality coming from the central banking system. Bitcoin solves a lot of things, and its supported by a lot of innovators and talents, so we want to support that too
Bukele sees this as a gamechanger not just for El Salvador but for the whole world
Again clarifying that you can use whatever Bitcoin/LN wallet you want. You won't be forced to use govt wallet
The govt wallet and infra will be there to help people and improve financial inclusion, but it is not a requirement
El Salvador's Development bank will establish a trust fund, and buy the bitcoin of transactions by people who don't want to take BTC price risk, but want to receive USD.

This part doesn't involve the US Fed or Central Bank
No plans for Bitcoin mining at this point, but would consider doing something to promote mining
Bukele notes there is geothermal energy in ES, and the energy loss on transporting to the city.

Someone would want to set up a Bitcoin mining facility, but just a thought at this stage.
Nic: does high inflation motivate this decision?

Bukele: We were inspired by @Bitcoinbeach and work of @jackmallers
Bukele: The trust fund will hold at least $150M worth of Bitcoin, but not as a reserve.
for clarity: the trust fund amount will be accumulated over time, it doesn't hold this right now. e.g. customers paying Bitcoin with merchants who want to use the development bank's trust fund.

It'll be selling and buying and maintaining roughly that level of btc 'stock'
Bukele is dropping off the Spaces now as the official vote is on in 5 minutes
Legal Tender bill passes with supermajority
Karim (Nayib Bukele's brother): They are applauding now on the floor
Karim: headline here says "The congress approves Bitcoin law"

Karim: This will be the front page of El Salvador's largest paper tomorrow

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More from @stephanlivera

7 Sep 19
Highlighting a few fantastic sections from Ludwig von @mises in Theory of Money and Credit:
@mises Inflation sends false signals to businesses, making them think they're making profit, when really they're consuming their capital.

Monetary depreciation falsifies capital accounting.
@mises Totalitarian govts don't want their subjects to shield themselves from monetary depreciation.
Read 6 tweets
23 Aug 19
Some consequences of inflation and hyperinflation, as discussed in Adam Fergusson's "When Money Dies" book:
Thanks Fiat Money! For driving poverty and malnourishment.

"All children of every class... were two years physically and mentally backward for their ages"
"Rise in prices intensified the demand for currency"
" ration the cashing of cheques"
"business came to a standstill"
"Wages were simply not available"
Read 15 tweets
1 Mar 19
@iwearahoodie 2/ First off, we should look at Bitcoin as a multi decade monetary phenomenon. We have to be patient overall!

The altcoins that try to rush this end up becoming the irrelevant 'kiddy pool'.
@iwearahoodie 3/ "The fees just get too high" - Yes the fees will eventually rise, and arguably this is baked into the design. But there are ideas on how to let people participate using things like channel factories.
Read 19 tweets
16 Jul 18
1/ "Intolerant" and "toxic" bitcoin maximalism? Understand what's going on beneath the surface with altcoins and their affinity scamming
2/ Affinity fraud: "in which the fraudster preys upon members of identifiable groups, such as religious or ethnic communities" "The fraudsters who promote affinity scams frequently are – or successfully pretend to be – members of the group"…
3/ They try to make out like it's a 'crypto community' and align themselves with known bitcoin pioneers and advocates.
Read 8 tweets
16 Jul 18
1/ Crucial ways in which HODLers are not free riders:

They are bearing much of the price or exchange rate risk. Merchants who accept BTC and insta-convert to fiat aren't bearing this risk.
2/ HODLers take on the opportunity cost of not holding any other asset

They could otherwise invest in stocks, bonds, real estate, other currencies etc.
3/ HODLers help 'pay' for bitcoin's security with inflation (block reward subsidy)

Incentivising miners to provide network hash rate
Read 6 tweets

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