The President of El Salvador has once again proven to be a bitcoin lover strictly for the whole public. According to the recent tweet of the President of El Salvador, he says that the days off for the Fiat currency are like the United States dollar, and the new resolution is going to be for bitcoin. He says that bitcoin will be the future for El Salvador and the whole world because it will change the world completely. Bitcoin is a digital currency that you can use on the Internet, and therefore, it is getting popular every day.
In an interview with Twitter, El Salvador’s President on Friday said that the experiment of bitcoin, which the country has already done, is going very well. If the impact of the adoption of bitcoin as a legal currency is good and positive, the days of Fiat currency will soon be over.
Also, he made some comments about fiat currencies in general. He says that the future and the existence of fiat currencies is no way the world can go towards modernization. It has to work towards digital and the centralized medium of making transactions. Bitcoin can be used on the Internet and also, it is a decentralized cryptocurrency for everyone to use. Far beyond the use of bitcoin as a trading medium, you can involve it very quickly in the payment system of any country of the world. Bitcoin has proven itself to be better than fiat currencies in terms of trading, and now, we have to see if it will do good to the country’s economy.
It is very well-known that the data available with El Salvador’s President is significantly less to predict if bitcoin is going to be a sound currency or not. However, for the President of El Salvador, the state of bitcoin as a legal currency is undoubtedly the best option that we can use. The adoption of bitcoin as a legal currency for El Salvador has been a means of getting out of the cycle of the pandemic hit economy. Therefore, he says that bitcoin can help the economy pay back the debt of $400 million that it has been taking from the financial institutions and banks. Also, when the economy was hit by a pandemic last year, it raised a lot of debts from the international financial institutions, which is not suitable for the country. For data and statistics, visit the Oil Profit Website.
In September 2021, bitcoin was made legal in El Salvador, and it purchased 400 bitcoins. It also said that it will purchase different numbers of bitcoin now, the treasury of bitcoin with El Salvador standing at 1000 bitcoins, and it says that it will further increase the reserves. Furthermore, to increase the use of bitcoin throughout El Salvador, the President has also ensured the setting up of a bitcoin teller machine across the country. Also, he said that the government would be providing a lot of incentives to the people who adopt cryptocurrencies for transactions and investments. Hence, we are yet to discover if that option of bitcoin will do any good to the country or if it is going to undermine the financial assets.
El Salvador as a case study!
When El Salvador accepted bitcoin as a legal tender in the country, many things carried on at the international levels. However, many international organizations favor accepting bitcoin as a legal tender. Some of the most influential organizations said that bitcoin is too volatile to be any nation’s legal currency Also including international monetary funds. Also, they condemned the decision of El Salvador to take bitcoin as a legal currency. Experts say that it can undermine the country’s consumer protection, financial stability. Therefore, it is not suitable for becoming the financial currency for any nation’s people.
Even though there is a lot of criticism globally for accepting bitcoin as a legal tender in El Salvador, the President is still optimistic. The country recently added more bitcoins to the treasury when the prices were low. However, the country has also made huge profits from the recent increase and decrease in bitcoin prices. The country has proposed a plan to build 20 bitcoin schools and various other projects by the profit from fluctuations in bitcoin prices. Apart from this, the country will create a bitcoin city that bitcoin-backed bonds would wholly fund.
