Subject category:
Finance, Accounting and Control
Published by:
Amity Research Centers
Length: 5 pages
Data source: Published sources
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https://casecent.re/p/178529
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Abstract
The case is targeted at the students of Financial Management, especially those pursuing topics of digital currencies. The case is designed for a classroom discussion on the move of El Salvador, a small coastal country located in Central America, to adopt bitcoin as a legal tender in the country. Along with its existing legal tender currencies - Salvadoran Colon and the US Dollar, Bitcoin became the third legal currency to carry out various economic activities in the country. With this move, El Salvador aimed to attract investment, financial inclusion, tourism, innovation and economic development in the country. However, El Salvador's move triggered mixed responses among Salvadorans and Analysts as some see this as a move to foster prosperity and financial options, while others worried about its practical usage. Even the World Bank and IMF were not convinced with El Salvador's move and raised concerns about currency transparency and regulatory processes. Amidst the pros and cons, would El Salvador be able to run Bitcoin as a legal currency successfully, parallel to US dollar?
Teaching and learning
This item is suitable for undergraduate, postgraduate and executive education courses.Time period
The events covered by this case took place in 2021.Geographical setting
Region:
Americas
Country:
El Salvador
About
Abstract
The case is targeted at the students of Financial Management, especially those pursuing topics of digital currencies. The case is designed for a classroom discussion on the move of El Salvador, a small coastal country located in Central America, to adopt bitcoin as a legal tender in the country. Along with its existing legal tender currencies - Salvadoran Colon and the US Dollar, Bitcoin became the third legal currency to carry out various economic activities in the country. With this move, El Salvador aimed to attract investment, financial inclusion, tourism, innovation and economic development in the country. However, El Salvador's move triggered mixed responses among Salvadorans and Analysts as some see this as a move to foster prosperity and financial options, while others worried about its practical usage. Even the World Bank and IMF were not convinced with El Salvador's move and raised concerns about currency transparency and regulatory processes. Amidst the pros and cons, would El Salvador be able to run Bitcoin as a legal currency successfully, parallel to US dollar?
Teaching and learning
This item is suitable for undergraduate, postgraduate and executive education courses.Settings
Time period
The events covered by this case took place in 2021.Geographical setting
Region:
Americas
Country:
El Salvador