[pocoloco]

> But the problem for El Salvador is not the technology of monetary systems

I do believe that the monetary system IS the problem since El Salvador is dollarized and is subject to a foreign central bank antics while having no say in the matter. Having their own would be marginally better perhaps but IMO bitcoin is a much better solution.

[rsj_hn]

The only reason nations get dollarized is because they do not trust the fiat currencies issued by their own government because the government chooses to extract more from seignorage than the benefits of having the currency or the government is not otherwise trusted to not seize bank accounts. Thus they choose to opt out of their local government-run system. That is an effect rather than a cause. Once that happens, a whole host of other problems occur, from breakdown in credit systems and payment systems to underground economies and loss of tax income. Bitcoin solves none of these problems, which are the core problems. Rather, trying to use bitcoins rather than seashells, gold doubloons, or foreign dollars is just an expression of the population's lack of trust in their own government and switching from one of these alt-currencies to another doesn't help the government at all. What would help the government is enforcing rule of law, establishing trust in financial institutions, providing value for amounts taxed so that there is popular support for taxation and trust that the money is well spent, and establishing faith in the government's currency. That is what would help El Salvador, not hoping that the US government makes it easier for foreign nationals to acquire dollar denominated debt.