Cryptocurrency : bitcoin would help tackle currency problems in El Salvador

The President of El Salvador, Nayib Bukele, stands firm in adopting bitcoin (BTC) as legal tender in the country and assured that the decision “is bulletproof.”

The president of the Central American nation made such an assertion in the investor Peter McCormack’s podcast, What BItcoin did, published on YouTube on June 23, 2021.

Bukele took off his president’s suit to dress like an ordinary citizen. His clothes were a blue jean, a black jacket and a white cap. All this, he did following the advice of his wife: «The first lady wanted me to do it, to dress as a human being just like you. I have to get out of the habit of being president.

In the interview of more than an hour, the Head of State of El Salvador said that Bitcoin caught his attention when it was worth very little and It hadn’t generated as much interest as it does today. Consider that this process that occurs with cryptocurrency will be greater than it is now. “So I think that not only countries but many people are switching to bitcoin because of the problems that exist with the current monetary systems. But bitcoin is so perfect that I think it will be part of the future that is already a present.

Bukele highlighted that El Salvador is the first country to adopt bitcoin as legal tender. Among the benefits that this decision will bring to the citizens of the Central American nation, he mentioned receiving remittances “at the speed of light” and with low-cost transactions, bank people who do not have bank accounts, attract investment in tourism and be less dependent on the issuance of dollars.

“When a country prints more money, the positive side is that the government has more money to spend. The downside is inflation because more money is being invested without any basis, which makes those dollars worth less.

Bukele also argued that bitcoin would help address “currency problems,” referring to the fact that by using the US dollar, “we only absorb the cost.” So with the cryptocurrency it is sought “not to become independent, but at least to become a little less dependent on US dollars and dollar inflation.”

Bukele compared the current bitcoinization to the dollarization that his country experienced in 2001. “The only difference, probably, is the reasons why we are doing this. In 2001 it was probably made for the benefit of the banks, while this decision (bitcoin) was made for the benefit of the people. ‘

El Salvador evaluates launching a digital currency

Bukele was then asked why El Salvador did not launch its own digital currency. To which he replied, of course El Salvador could do so because it has the backing of Congress to put this initiative in motion. “But I don’t think that would be innovative or boost finances or help people who receive remittances. If it could be a good measure at the political level.

Bukele believes that the bitcoin system is something “so perfect that it will be the future.” Source: What Bitcoin Did.

Bitcoin is a bulletproof system

The youngest president in Latin America believes that the bitcoin system is something “so perfect that it will be the future.” ‘For me, it’s bulletproof. I’m sure this will work, not just for us but for humanity, “he said.

On the reaction of the banking system to the adoption of bitcoin, Bukele considered “yes, there may be people angry with us. Let’s see how things are here. 70% of the population does not have a bank account, so some banks may be upset, but they are not taking care of 70% of our population.

As for the large financial institutions, such as the International Monetary Fund and the Inter-American Development Bank (IDB), Bukele refers to them as powerful institutions and from which his country needs help. The same one you had in the past and hope it will help you in the future.

The president reiterated his feeling of happiness. According to him, this initiative to convert bitcoin into legal tender in El Salvador will help humanity. It has also been endorsed by politicians from Paraguay, Panama, Honduras, Guatemala, Costa Rica, Nigeria and Tanzania.

McCormack asked him, “Why should people trust him?” Bukele replied that people do not have to trust the government but rather bitcoin. In his opinion, the cryptocurrency system is perfect. They need to trust that bitcoin works for Salvadorans.

Your first approaches to bitcoin

The host asked Bukele if he remembered the first time he took a look at bitcoin. He noted that at first he read his story and thought it was a very smart system, which generated that thousands of ideas will haunt your head, but they faded over time because they weren’t strong enough.

But after several years and seeing bitcoin grow, not only because of its price, but because of its system, convinced him that he is strong because he has withstood the pressure of time and to the change of the global and political panorama.

He pointed out that all traditional economists have rejected bitcoin. “They do not want cryptocurrency because they are classics and their ideas are preconceived.” Bukele does not believe that this position of economists has something against bitcoin, but that they resist change and try to defend their comfort zone.

Bukele: “It doesn’t make sense. I don’t want to fight the World Bank. They are free to help us or not to help us ”. Fountain:

“It’s a shame, but I would not recommend that a colleague come out of the closet”

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