After El Salvador, Mexico?

Is Mexico about to follow in El Salvador’s footsteps by embracing Bitcoin? This is what Samson Mow proposed before the Mexican parliament.

Samson Mow with a wand

As the world polarizes between the BRICS and the West, the question of a new international currency to replace the dollar is on everyone’s lips.

Non-aligned nations would do well to adopt the Bitcoin Standard so as not to fall from Charybdis to Scylla by adopting the yuan or the euro.

This is the opinion of Samson Mow, the former chief strategy officer of Blockstream, who now advises states interested in bitcoin. Here is his message for Mexican MPs:

“A country wishing to adopt a Bitcoin strategy can do three things. The simplest is to hold bitcoins in the same way as gold or foreign exchange reserves.

It is then necessary to issue “Bitcoin bonds” to finance the mining of bitcoins. Mexico is an energy-rich country. […] This would make it possible to accumulate bitcoins and become the spearhead of this new type of financial instruments on the world financial scene.

Third, work on a Bitcoin law like the one Senator Indira Kempis has been working on for two years. Such a law must make bitcoin a legal currency allowing everyone to freely pay in BTC. »

“Countries have three main paths for the adoption of #Bitcoin, explains Samson Mow to the Mexican parliament.
1- Add bitcoin to foreign exchange reserves
2- Issue bonds to finance mining
3- Enact laws allowing the use of bitcoin as a currency in its own right, as Senator Indira Kempis intends to do. »

Bitcoin vs. Dollar

Let’s hope that these declarations will find a favorable echo in Mexico. It wouldn’t be a big surprise when you know the deep enmity that the Mexican president harbors for the United States.

The world needs a new reserve currency. The yuan can become an international payment currency, but not a reserve currency. For a simple reason: the CCP does not want to liberalize its markets.

The dollar is the reserve currency par excellence thanks to its freely accessible debt market. As a result, Americans now have a $7 trillion slate vis-à-vis the rest of the world.

Problem, inflation in the United States far exceeds the return on public debt… Not to mention the fact that Washington and the EU defaulted on 300 billion dollars that they owed to Russia.

It is written in advance that China will not see the color of the approximately 1000 billion dollars invested in US Treasury bonds either. It is for nothing else that the Biden government is trying to set fire to the powder in Taiwan.

[Ce qui permet aussi de forcer Taipei à transférer sa technologie des semi-conducteurs…]

Conversely, no one can “freeze” or devalue bitcoin. Stateless, endowed with an absolutely fixed and uncensorable monetary mass, it is cut out to impose itself as the next international reserve currency.

bitcoin leap

El Salvador is the first country to pass a law paving the way for issuing bitcoin bonds.

THE plan announced in November 2021 should enable El Salvador to raise one billion dollars (in BTC) on Blockstream’s Liquid Network. These bitcoins will help build a bitcoin mining industry.

According to statements made at the time, Bitcoin bonds were to yield 6.5% per year (with the El Salvador passport as a bonus).

Let’s also hope that the French miner BBGS, already present in South America, will be able to contribute its know-how.

The Mexican president would be well advised to follow the example of the president of El Salvador Nayib Bukele. Do not be afraid to allow people to spend their BTC without restriction.

Bitcoin is a currency/store of value like any other. It in no way threatens the banking system, which will always remain essential for assessing the relevance of investments and financing them.

The fact that bitcoin replaces $12 trillion in gold and $12 trillion in foreign exchange reserves can only be good for the world.

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