Friday, January 28, 2022
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By Palak Malhotra
Published 41 mins ago Updated 41 mins ago

The Salvadoran President, Nayib Bukele took to Twitter yet again to reinstate Bitcoin’s dominance, however this time around he also asserted that once Bitcoin mass adoption is complete, “it’s game over for FIAT”. President Bukele has maintained a permanent slot in news headlines given his consistent Bitcoin purchases, along with absolutist pro-Bitcoin stances.

In his tweet, Bukele noted that because El Salvador was the first ever country to implement Bitcoin Legal Tender, they received considerable backlash from international organisations, calling El Salvador “The Bitcoin Experiment”. Nevertheless, he highlighted that while the rest of the world was frowning upon them as a mere ‘experiment’, El Salvador was changing the face of its economy through Bitcoin mass adoption. Additionally, Bukele asserted that when Fiat is out of the picture in lieu of Bitcoin’s absolute global dominance, then El Salvador will be considered as “the spark” that ignited “the real revolution”.

Salvador receives global criticism

President Bukele has maintained his faith in Bitcoin despite substantial global criticism. From the International Monetary Fund (IMF) warning El Salvador against its Bitcoin legal tender to the infamous anti-crypto and pro-gold, Stock Broker, Peter Schiff calling Salvador’s BTC investments as waste of ‘the taxpayers hard earned income’, there were and still continue to be instances against Salvador’s BTC adoption. However, despite the backlash and manifold market crashes, the country still bought every Bitcoin dip this 2021 and also reaped its benefits, marking a landmark in the crypto community.

Towards the end of last month, IMF alerted Salvador highlighting that despite large scale crypto gains, the use of Bitcoin legal tender could potentially inflict economic harm upon the consumers and the nation’s financial stability because of Bitcoin’s high volatility. Furthermore, IMF suggested the Salvadoran authorities to narrow the scope of its Bitcoin law, along with strengthening regulations and oversight of the new payment ecosystem.

“Given Bitcoin’s high price volatility, its use as a legal tender entails significant risks to consumer protection, financial integrity, and financial stability. Its use also gives rise to fiscal contingent liabilities.”, IMF stated in the published piece.

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