[Darmody]

Or any other fiat currency.

I want to see blockchain gone but most legislators don't understand it, they think it should be gone but they are not sure why so they end up with nonsense like this.

[ludamad]

It's also a bit ill-timed as Bitcoin is "now a fiat currency", if you go by El Salvador's wiki page

[phire]

That makes it "Legal Tender" in Salvador, but not fiat.

It's a bit of a weird situation. Normally when a currency is legal tender and not fiat it's backed by a physical resource, like gold or silver.

But here it's only backed by software and people agreeing that it has value. Kind of puts bitcoin in its own unique category.

[bidirectional]

A fiat currency is issued by a government without being backed by a physical commodity. El Salvador's adoption of Bitcoin does not make it a fiat currency.

[imtringued]

I think this is in reference to a US law that states that a "currency" adopted by a foreign country is not classified as an asset but as a currency. This has tax implications but I don't know the details.

[wsc981]

> It's also a bit ill-timed as Bitcoin is "now a fiat currency", if you go by El Salvador's wiki page

It's probably timed right now by the Dutch CPB because El Salvador accepted BTC as a fiat currency.