Matt Hamilton, who previously served as the Director of Developer Relations at Ripple, has put forth an intriguing proposal to El Salvador. He recommends that El Salvador consider transitioning from Bitcoin (BTC) to Ripple’s XRP. In his statement, Hamilton cited escalating transaction fees and potential scalability issues associated with Bitcoin.
The exponential demand for Bitcoin has seen a proportional rise in transaction costs. This is causing apprehension among its users. Journalist Marce Romero recently illuminated the toll these exorbitant fees are having on Bitcoin users in El Salvador. A notable incident involved an individual who was charged a $20 fee for a $100 withdrawal. Given that the typical salary in El Salvador oscillates between $300 and $350, this fee is quite major. Hamilton believes this situation clearly signifies the need for adopting technology that is more adept at handling such transactions. His idea – XRP and the XRP Ledger.
History Of El Salvador And Bitcoin
El Salvador emerged as a pioneer in the fall of 2021 by designating Bitcoin as a legal tender. This was led by a major investment of its budget into the cryptocurrency. The legalization of BTC has led to an impressive 95% boost in tourism. Additionally, the government has rolled out educational initiatives focusing on BTC and the Lightning Network. This way, President Nayib Bukele aims to broaden its citizens’ comprehension of these technologies.
However, Hamilton contends that merely expressing dissatisfaction with Bitcoin’s limitations and challenges is not constructive. He promotes XRP and the XRP Ledger as a solution. in his view, they are more capable of facilitating cost-effective and efficient transactions. Thanks to RippleNet and its swift processing times, XRP could be an attractive alternative for countries wishing to incorporate cryptocurrencies.
While Bitcoin’s soaring popularity is unquestionable, the obstacles it presents, including high fees, underscore the need for viable scalability solutions. Cryptocurrencies continue to gain acceptance among governments and institutions. This calls for cost-effective and efficient transactions, and while Bitcoin provides both of these in theory, recent developments show stagnation.
Hamilton’s recommendation to adopt XRP could potentially help navigate the current issues plaguing Bitcoin. As the cryptocurrency landscape continues to evolve, it remains to be seen if El Salvador or other nations will entertain this proposition. As far as we know, President Bukele might not even consider doing such a transition.