El Salvador became the first country to adopt Bitcoin as legal tender (June 9, 2021) and many Bitcoin supporters cheered. There is only one slight problem. Bitcoin is about freedom. Freedom from any central control. Freedom from censorship. Freedom from fiat currencies that come with many strings attached, most of them pulled by puppeteers who remain behind the scenes, unelected and unaccountable. By passing a law that makes Bitcoin legal tender in El Salvador, the government is now forcing businesses in El Salvador to accept Bitcoin. This is no different than what El Salvador has done with US dollars as legal tender there. “Freedom lite.”

Some will argue that the path El Salvador has taken is the only way any alternative currency will be supported there or any other country. They argue that the government needs to use similar laws for Bitcoin as they do for the other currencies that are considered legal tender. If this is true, then Bitcoin as a currency has failed in a far greater way than those related to its glacial transaction speeds, lack of scale and programmability. Ideally, a government would recognize Bitcoin (and/or other cryptocurrencies) as legal tender without enforcing that currency to be accepted by all businesses. If businesses see compelling reasons to support the new currency, they’ll adopt it and momentum will build. Instead, El Salvador businesses will adopt Bitcoin because they’ll face fines or potentially worse. I’m not sure how Bitcoiners, many who consider themselves aligned with Anarcho-capitalism, can see this government coercion acceptable. Does this government forced approach further the cause of Bitcoin as a currency in El Salvador? Yes, but at what cost?