By Elena Obukhova, founder & CEO at FAS | Fintech Advisory ServicesWe all heard the recent news that El Salvador is to become the first country to use Bitcoin as a legal tender. What would that mean for the rest of the world?Honestly, I am not surprised that the first country to do so comes from Latin America. Countries in the region have been suffering from multiple crises and economic instability. People started losing trust in the government and central banks. In 2001, for example, Argentina froze all bank accounts and only allowed small withdrawals from peso-denominated accounts. It was not the first case of the government taking such actions. Earlier, in 1982, Mexico banned US-dollar accounts and converted funds to pesos automatically that caused a 30% immediate loss for the account holders on the currency exchange.Unfortunately, the list of such events in Latin American history is endless. Lack of trust in the public system provoked a rise of the Cash Economy there. Financially excluded citizens do not want to become inclusive as they simply do not trust banks. When you know that any moment the crisis hits and the government can freeze all your accounts, you feel safer to keep all cash at home \u201cunder your pillow\u201d.What exactly is the Cash Economy, you might ask? It\u2019s a combined term to describe all the transactions and activities, both legal and illegal, that are using cash: remittances, loans, investments, savings, purchases of goods and services. People become a part of the Cash Economy for multiple reasons. They can have good intentions trying to protect savings from inflation or sending money to their family. They can also have other intentions like avoiding taxes or even purchasing illegal commodities and goods. Cash Economy is not the same as a black market, it\u2019s rather\u2026<\/p>","protected":false},"excerpt":{"rendered":"
By Elena Obukhova, founder & CEO at FAS | Fintech Advisory ServicesWe all heard the recent news that El Salvador is to become the first country [\u2026]<\/span><\/p>","protected":false},"author":0,"featured_media":2796,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/afluxcoin.com\/ru\/wp-json\/wp\/v2\/posts\/4690"}],"collection":[{"href":"https:\/\/afluxcoin.com\/ru\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/afluxcoin.com\/ru\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/ru\/wp-json\/wp\/v2\/comments?post=4690"}],"version-history":[{"count":0,"href":"https:\/\/afluxcoin.com\/ru\/wp-json\/wp\/v2\/posts\/4690\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/ru\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/afluxcoin.com\/ru\/wp-json\/wp\/v2\/media?parent=4690"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/afluxcoin.com\/ru\/wp-json\/wp\/v2\/categories?post=4690"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/afluxcoin.com\/ru\/wp-json\/wp\/v2\/tags?post=4690"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}