El Salvador undoubtedly marks the history of the crypto industry. Recently, the Central American country passed an unprecedented law to not only support the development of Bitcoin (BTC), but also to pay off its sovereign debt. A choice that is not unanimous in the country. The political class is divided on the issue, and internationally, the decision is the subject of much criticism. Once again, Salvadoran President Nayib Bukele is stepping up to silence the critics.
There are no risks of destroying the economy because of bitcoin (BTC)
The President of El Salvador Nayib Bukele is still paying the price for his economic choice based on bitcoin (BTC). Recent revelations regarding the repayment of the country’s sovereign debt via bitcoin have fueled a wave of rumors about the collapse of the national economy, amid falling crypto prices.
Indeed, information disseminated in the local and international press indicates that around 50 million dollars have been lost by the country, as a result of Bitcoin operations. These would, in short, have turned out badly. Those data, Nayib Bukele vigorously rejected them.
The leader denounces false statements, distilled by international media in the pay of political adversaries, among others. Entities which, according to him, have no control over the socio-economic realities of his country.
“El Salvador is a relatively poor country, but it has a gross domestic product of $28 billion in goods and services in 2021 alone. The idea that a loss of $50 million, or less than 0, 2% of GDP, would destroy or even impoverish the country’s economy is nonsense,” said the president.
Is the country the locomotive of a revolution?
If Nayib Bukele swears by Bitcoin and cryptos more generally, it is because the president believes he has set his country on the path to economic and financial freedom. According to him, this choice is relevant, because the State seems to achieve its economic objectives. Now he wants to keep up the pace.
“El Salvador is leading a movement for economic freedom, financial sovereignty, resistance to censorship, non-violent inclusion of assets. We fight against money printing, devaluation, elites and the people behind them who pull the strings. If El Salvador succeeds, many countries will follow. If El Salvador fails, no country will follow. They get it, and that’s why they fight us so hard », Bukele said.
For now, El Salvador really seems to be playing a leading role, as many states are exploring how to integrate cryptos into their financial system. A trend which should also accelerate in the months to come.
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