Thread by @ChainLinkGod

1/ El Salvador classifying #Bitcoin as legal tender was a monumental moment

It sets the precedence that crypto can indeed be alternative to fiat and normalizes it as a tool of economic freedom

It's good for all crypto, here's how #Chainlink can help expand this even further

2/ Under this law, businesses are required to accept #Bitcoin if offered by consumers (and if they have the technical means to accept it)

However, businesses also have the option to automatically convert revieved Bitcoin into US dollars to manage their exposure risk

3/ The El Salvador government has created a $150M $USD trust fund that will purchase any #Bitcoin that businesses don't want, allowing for instant redeemability

This process and beyond will require the $BTC/USD exchange rate

You can probably see where I am going with this

4/ Use case 1: A business only wants to hold US dollars, meaning any acquired #Bitcoin will have to be sold (can't refuse the payment by law)

The government can use the cryptoeconomically secured #Chainlink BTC/USD Price Feed to execute the trade at the market-wide price

5/ While a centralized price feed for the BTC/USD exchange rate could be used, that's a central point of failure and does not follow the ethos of decentralization

Chainlink price data is available on multiple blockchains, so lower latency chains can provide more fresh data

6/ Use case 2: A business wants to price their goods and services in $USD but want/need to accept #Bitcoin if offered

At time of purchase, the #Chainlink BTC/USD Price Feed can be used to determine how much Bitcoin the consumer needs to pay in real time

7/ Use case 3: How do we know how much available USD is actually being held in the government's trust fund?

A real time #Chainlink Proof of Reserves data feed can be launched to provide an on-chain immutable audit trail of $USD holdings
blog.chain.link/chainlink-proo…

8/ The Chainlink Network is already providing Proof of Reserves for USD stablecoins $TUSD, $PAX, and $EURS, gold-backed token $PAXG, and BTC-backed tokens $WBTC and $renBTC

This data would be available for all to see and #DeFi products could even be built around this info

9/ Use case 4: Once the citizens of a nation become crypto native, the next logical step is putting that crypto to work

That's where #DeFi comes into play, it turns every crypto asset into a productive asset

Yield
Loans
Liquidity
Insurance
Etc

All made possible with #Chainlink

10/ El Salvador is just the first domino of many in terms of nations accepting #Bitcoin as legal tender

We're already seeing politicians in other Latin America countries beginning to voice their support publicly for Bitcoin

Do not underestimate the macro narratives at play here

11/ Through the combination of #Bitcoin, #Chainlink, and #DeFi, a new decentralized, permissionless, censorship-resistant, and transparent financial ecosystem is being built before our eyes

The greatest shift of societal wealth we've ever seen
blog.chain.link/growing-bitcoi…