Bukele responds to his Bitcoin experience
After the International Monetary Fund (IMF) and other organizations criticized the creation of Bitcoin as legal tender for Salvador, the head of state defended this national experiment, the first of its kind in the world.
El Salvador’s President Nayib Bokil has responded to criticism from various international financial organizations after his country submitted a legal bid for bitcoin, as well as the dollar that replaced the national currency, the colon, 20 years ago.
âWhat international organizations have called the ‘Bitcoin experiment’ is nothing more than watching the world see how mass adoption affects a country’s economy,â the Salvadoran president wrote on 23. December on his Twitter account. Besides, if all goes well, “it will be the end of paper money”. âEl Salvador is the spark that ignited a real revolution,â concluded the 40-year-old leader.
What international organizations have called “The # bitcoins experience, âis nothing more than a scientist observing how mass adoption changes a country’s economy.
If it’s for good, the FIAT game is over.
El Salvador is the spark that ignited the real revolution.
– Nayib Bukele (nayibbukele) 23 December 2021
On September 7, despite protests and warnings from the International Monetary Fund (IMF), El Salvador became the first country in the world to adopt bitcoin as legal tender. The head of state, at the origin of the monetary reform, ensures that it will allow the population to have better access to banking services and will save 400 million bank charges on transfers to the country by immigrants . These remittances from abroad, especially expatriates residing in the United States, represent 22% of El Salvador’s GDP.
The main concerns of international organizations relate to the speculative nature of cryptocurrencies, as well as their work outside international regulations, which can expose the country to operations such as money laundering or tax evasion. In this regard, the Economic Commission for Latin America and the Caribbean (ECLAC) pointed out that the Financial Action Task Force (FATF), which oversees money laundering, has highlighted El Salvador.
After initial hostile comments in June, the International Monetary Fund reiterated its position at the end of November in advising against the widespread use of bitcoin, arguing that “its use as legal tender carries significant risks to consumer protection, financial security and security. financial stability “. A few days later, the Governor of the Bank of England, Andrew Bailey, in turn expressed concern over the Central American country’s government decision, as he felt that not all Salvadorans “understand nature. and currency volatility. From the King. âThe World Bank and the Inter-American Development Bank have also expressed skepticism and warned El Salvador against the risks of the process.
Yet, according to the International Monetary Fund, the country’s GDP is expected to grow 10% in 2021 and 3.2% the following year.
Despite his original and somewhat visceral personality, President Najib Bukele is very popular in his country where a strong majority of Salvadorans approve of his government. The controversy over his politics, the recent US sanctions against his cabinet, and his Twitter biography of sometimes posing as “dictator” and sometimes “CEO of El Salvador” do not appear to have affected his popularity.
According to an investigation by the investigation unit of the local newspaper the press Posted on December 15, 85.1% of those polled strongly or somewhat supported NEP Bokel, Reuters reported. Opposition groups across the country and in the White House have sharply criticized the Salvadoran president for his aggressive style of governance, including the dismissal of Supreme Court justices in May, as well as the attorney general. In addition, Washington It was approved in early December by members of the Bukele government. Suspected links to corruption cases and suspicion of gang negotiations.
A few days after the announcement of these American sanctions, thousands of people demonstrated on December 12 in San Salvador against corruption and what they consider to be the authoritarian aberration of the country. American taxpayers should know their government is using their money to fund communist movements against a democratically elected government [â¦] In El Salvador, âNeb Bukele wrote on Twitter after the protest.
The Salvadoran president, in power since 2019, has shaken up the traditional parties that have dominated Salvadoran politics for 30 years.