El Salvador has recently become the first country to accept Bitcoin as a legal tender. While some think it is a great idea, some think it will lead to a collapse of their economy. Well, maybe yes, maybe not; I am no economist to give an opinion on the same. But the president of El Salvador resides full faith in his decision calling the Bitcoin plan “bulletproof”. According to him, there are some risks to this plan, but it will be a big step forward for humanity.
El Salvador president on Bitcoin adoption
After the announcement of Bitcoin as a legal tender, the world bank has withdrawn support from the country. And even after that, the president believes that the decision is not wrong. He said that this move would benefit the economy and boost jobs in the country. At the same time, it will reduce the dependency of El Salvador on the US Dollar. This means that they won’t be adversely affected by the huge inflation of the US dollars due to continuous printing. It would have been great if they had support from the world bank and other organization, but even without them, the country could make it through.
If it works for El Salvador, we might soon see other small countries adopt Bitcoin. This is because they too suffer from inflation, and the value of their currency is very less. Do note that El Salvador is not planning to hold BTC in its reserves. It is just for monetary transactions.
Bitcoin vs Dollar
Those who are complaining regarding this decision or are worried about the country’s economy can relax. The president gave a very good point that they adopted USD in 2001, and that didn’t do any good. But at that time, the decision was made for the benefit of the banks, while BTC adoption is for the benefit of the masses. His point is that whatever happens, it is worth a try. The revenue that can be generated from Bitcoin mining in the country could also be substantial.
What are your thoughts on the president of El Salvador calling the Bitcoin plan “bulletproof”? And do you think that other small countries will also start adopting it? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Bitcoin worth $3.6 billion vanishes from African crypto exchange.
