Saturday, January 28, 2023

El Salvador President Stands By His Decision Of Legalizing Bitcoin

El Salvador is ready to bring Bitcoin Law into the country, on September 07. The country created a headline on June 09, when it announced to accept Bitcoin as a legal tender. 

However, many financial regulatory bodies around the world, like IMF and World Bank, did not welcome this bold decision wholeheartedly. The latest criticism for El Salvador came from Steve Hanke, an economist at John Hopkins University.

While criticizing the President of El Salvador Nayib Bukele, Hanke stated, “The StateDept sanctioned 14 El Salvadoran govt officials, WorldBank & IMF issued warnings, & ELSL’s bonds tanked. But Pres. Nayib Bukele has ignored these red flags & marches on with his crackpot Bitcoin Law. Bukele is playing with fire. ELSL will be burnt.”

In a reply to an economist’s tweet, Bukele referred to him as a ‘boomer’.

This is not the first time, President Bukele has faced criticism. Initially, when Bitcoin was accepted as a legal tender in El Salvador, not only the world but also the states within the country criticized the decision.

As per the report, the opposition in the Latin American country even registered a lawsuit to halt the imposition of Bitcoin law.

Even the IMF and WorldBank warned the country citing the ill effects of Bitcoin’s volatility on the lenders and financial market.  But, President Bukele stands by his decision. 

He specified that the country did not accept Bitcoin just for the sake of the international press. Bukele believes that with the help of Bitcoin most of the finance-related issues of El Salvador would get resolved easily.

After the country legalized Bitcoin, it initiated an airdrop campaign to promote the use of a digital wallet. 

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