El Salvador’s recent decision is a Hail Mary attempt at solving a tiny impoverished country’s crippling financial situation. They make their citizens use a government approved wallet where they process transactions off chain. This is the antithesis of what crypto used to stand for.
The worlds largest country just banned Bitcoin too. I don’t think either event is indicative of btc’s intrinsic value.
I meant to say it is not a major economy, so thank you for not being pedantic on that point.
But, can you give me a source on how their transactions are being processed off chain. I know that they use a government backed wallet. It was my understanding that any transactions handled in this way eventually have to be settled back into the main chain.
> It was my understanding that any transactions handled in this way eventually have to be settled back into the main chain.
I'm unaware of the exact details, but the govt approved wallet uses a proprietary payment processing system in addition to the LN. Yes eventually in theory those transactions should make it back to the main chain when tokens exit the system (requiring El Salvador's permission).
At any rate, we've gone in a big circle and reinvented settlement banking on top of bitcoin.
The worlds largest country just banned Bitcoin too. I don’t think either event is indicative of btc’s intrinsic value.