For one thing: emotion. El Salvador previously depended on the USD and generally I assume those kind of countries do not like to depend on a currency controlled by a 'big neighbor'.
But better: now the authorities can instantly see all financial transactions? Using their special app (El Salvador) which connects each ID to a BTC address makes it possible to know exactly who is doing what and where. Yes BTC can be used to pay taxes. But much more important they can now probably see much better how much taxes should be paid in the first place. This might schrink the dirty money part of the economy immensly.
Comments
For one thing: emotion. El Salvador previously depended on the USD and generally I assume those kind of countries do not like to depend on a currency controlled by a 'big neighbor'.
But better: now the authorities can instantly see all financial transactions? Using their special app (El Salvador) which connects each ID to a BTC address makes it possible to know exactly who is doing what and where. Yes BTC can be used to pay taxes. But much more important they can now probably see much better how much taxes should be paid in the first place. This might schrink the dirty money part of the economy immensly.